Asian stocks slide as fears rise over credit crunch

By DPA

Bangkok : Asia’s main stock markets resumed their downward slide Friday amid growing fears over a global credit crunch brought on by the ailing home-loan market in the United States.
Japan’s key Nikkei stock index took the biggest hit, plummeting more than five percent to close Friday at its lowest point in a year.


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The broader Topix index of all first-section issues also plunged 87.07 points, or 5.55 percent, to close at 1,480.39.

Since last Friday, the Nikkei has lost 8.89 percent, and Topix has fallen 9.40 percent.

Japanese stocks fell in morning trading as the yen surged to a one-year high against the dollar and after overnight falls on US and European stock markets.

Exporters’ stocks were among those hardest hit because a stronger yen makes their goods more expensive abroad and lessens the value of their overseas sales.

The Japanese central bank poured liquidity into the market after the key short-term rate rose from its target of 0.5 percent to 0.54 percent Friday.

Shares also fell on the Seoul stock exchange after a record points drop on the previous day and as concerns failed to abate over the global impact of losses linked to US subprime mortgage loans.

The benchmark Kospi index fell 53.91 points, or 3.2 percent, to close at 1,638.07, after a 6.9 percent fall Thursday.

The main index of the technology-heavy Kosdaq market fell 15.59 points to 673.48.

In Hong Kong stocks went on a roller coaster ride, with the benchmark Hang Seng Index shedding 1,265 points in afternoon trade before regaining some of the losses to close at 20,387, down 285 points, or 1.38 percent, on the day.

Continuing market turmoil caused the Hang Seng Index to fall below the 20,000 level for the first time in more than four months, with the initial afternoon losses wiping out all the gains seen since the beginning of this year.

The market was later buoyed by a rebound in European stocks.

China’s CSI 300 Index, which tracks shares on both of the mainland’s main stock markets, was down 2.02 percent at 4,626.58.

The Shanghai Composite Index declined 2.28 percent to 4,656.57 while the Shenzhen Composite Index lost 1.57 percent of its value to stand at 1,297.21.

Among the biggest decliners were banks and financial services companies.

Singapore’s Straits Times Index fell 0.68 percent to close at 3,130.71.

Bucking the regional trend, the Stock Exchange of Thailand (SET) index ended at 758.42, up 7.73 points, or 1.0 percent.

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