By Xinhua
Hong Kong : Stock markets in the Asia-Pacfic region nosedived Tuesday as investors dumped shares on fears of a possible US economic recession.
In Japan, the benchmark 225-issue Nikkei Stock Average plunged 752.89 points, or 5.65 percent, from Monday to end at 12,573.05, its lowest closing since Sep 8, 2005.
Australia’s main share index, ASX/S&P 200, suffered its biggest loss in a day on record with 7 percent wiped out in the share market on Tuesday. South Korea saw the steepest fall since Aug 16, 2007 as the benchmark Korea Composite Stock Price Index fell 74.54 points, or 4.43 percent, to 1,609.02 Tuesday.
Hong Kong’s Hang Seng index lost 2,061.23 points, the largest single-day drop in points, to close at 21,757.63.
Earlier in the day, Japanese economic and trade ministers said that the government would watch closely but would not take immediate actions over the plunging stock prices.
Economic and fiscal policy minister Hiroko Ota and Economy, Trade and Industry Minister Akira Amari said separately that the volatile market was largely due to the global credit crunch from the US subprime mortgage crisis, and called for unified global action against the trend.
Yoshimi Watanabe, State Minister in Charge of Financial Services held talks with Prime Minister Yasuo Fukuda over the stock market development Tuesday and said that he hoped to take measure as early as possible to cope with the situation.
Indian Finance Minister Palaniappan Chidambaram urged investors to stay calm after the benchmark Sensex tumbled more than 11 percent in the first few minutes of trade Tuesday.
“We had anticipated the market to open on a downward trend and hit the circuit breaker. My advice to investors is to stay calm,” Chidambaram said after the plunge.
The South Korean finance ministry said Tuesday that the government will convene an emergency meeting Wednesday to discuss measures against the sharp plunge in the stock market.
Senior government officials will review the latest development of the financial market in South Korea and other countries and discuss counter-measures, said the ministry.
Australian Treasurer Wayne Swan said continuing growth in Asia would help Australia ride out the turbulence in world financial markets.
Swan said uncertainty remains about the extent of losses associated with the US sub-prime mortgage market collapse.
“However, I note we are well placed to ride out the turbulence.. . The prospects for ongoing growth in Asia and the developing markets are assisting us to withstand the fallout occurring elsewhere.” the treasurer said in a statement.