Sun, May 09, 2010 page10

• Asian stocks fall on China growth, EU debt concern

  RECOVERY ANXIETY If the Greek debt crisis does not deteriorate any further, Taiwanese stocks are likely to rebound in the upcoming week, market watchers said

  • AGENCIES, WITH STAFF WRITER
  • • 
    • 
    • 

  Asian stocks fell, driving the MSCI Asia-Pacific Index to its biggest weekly loss in more than a year, on concern Europe’s debt crisis may derail the global recovery and after China’s manufacturing growth slowed.

  HSBC Holdings PLC, Europe’s largest bank, tumbled 9.1 percent in Hong Kong even as European leaders unveiled a bailout plan for Greece. Canon Inc, which counts Europe as its biggest market, sank 6.9 percent in Tokyo. Yanzhou Coal Mining Co (兗州煤業), a Chinese energy company, sank 13 percent in Hong Kong as a purchasing managers’ index fell to a six-month low. BHP Billiton Ltd, the world’s biggest mining company, lost 8 percent after Australia proposed the world’s heaviest tax regime on mining companies.

  “The Greek rescue package hasn’t curbed speculation that more countries will require similar bailouts,” said Tim Schroeders, who helps manage about US$1.1 billion at Pengana Capital Ltd in Melbourne. “The new Australian resources tax is an unwelcome burden and Chinese demand may cool.”

  The MSCI Asia-Pacific Index fell every day this week, losing 5.9 percent to close at 118.42, its biggest weekly loss since February last year, as European policy makers came under mounting pressure to broaden their response to the crisis after global equity markets tumbled.

  Japan’s Nikkei 225 Stock Average, closed for a three-day holiday at the start of the week, sank 6.3 percent. China’s Shanghai Composite Index slumped 6.4 percent and Hong Kong’s Hang Seng Index lost 5.6 percent.

  The MSCI Asia-Pacific Index has tumbled 8.3 percent from a 20-month high on April 15 as concerns grow that Greece’s debt problems will spread to other countries in Europe. Companies in the index trade at an average 14.9 times estimated earnings, the lowest level since Jan. 28 last year, according to data compiled by Bloomberg.

  Taiwanese share prices closed slightly lower on Friday, recovering most of the losses incurred earlier in the day on bargain-­hunting, with the weighted index — the market’s key barometer — moving down 12.38 points, or 0.16 percent, from Thursday to close at 7,567.10.

  The local bourse opened at 7,393.27 and fluctuated between 7,387.19 and 7,572.79. Market turnover totaled NT$134.9 billion (US$4.25 billion).

  Local shares opened markedly lower following losses on other Asian markets and on Wall Street, but bottomed out when bargain hunting began after the index broke its major technical level of 7,433, traders said.

  If the Greek debt crisis does not deteriorate further, the local share market is likely to rebound in the week ahead after the deep losses of this week, they said.

  Of the eight major stock categories, financial issues dropped the most at 1.2 percent and foodstuff shares fell 1 percent, while paper and pulp shares and construction issues were both down 0.5 percent.

  Other markets on Friday:

  Manila closed 0.81 percent, or 25.77 points, lower from Thursday at 3,142.06.

  Wellington ended 1.84 percent, or 59.07 points, lower from Thursday at 3,158.85.

  Mumbai fell 1.29 percent, or 218.42 to 16,769.11. India’s Supreme Court ruled in favor of the country’s richest man, Mukesh Ambani, in his long-running feud with his brother Anil over supplies from a huge natural gas discovery.

  Mukesh’s Reliance Industries Ltd rose 2.27 percent to 1,033.85 rupees. Anil’s Reliance Natural Resources Ltd plunged 22.82 percent to Rs52.75.
• Most Popular

  • 1

    Late derby drama keeps Inter in title race

  • 2

    CDC advises people to get vaccinated against flu

  • 3

    Marines to protect Songshan airport

  • 4

    US lawmakers introduce resolution to annul ‘one China’

  • 5

    Thousands gather in New Zealand on Waitangi Day