HONG KONG, Jan 28: Asian shares closed down on Monday as concern about the ailing US economy soured investor sentiment again, contributing to a slide of more than seven per cent in mainland Chinese stocks.
There were sharp falls in a number of regional bourses with investors apparently eager to realise some of the gains made from Wednesday last week, when stock markets bounced back having earlier plunged precipitously.
Asia was braced too for President George W. Bush’s State of the Union speech later Monday, in which he was set to address concerns that the US is headed for recession and touch on a planned 145-billion-dollar stimulus package.
The US Federal Reserve, which made an emergency interest rate cut last week amid a global stocks meltdown, is expected to lower borrowing costs again at the end of its scheduled meeting on Wednesday.
TOKYO: Japanese share prices tumbled almost 4.0 per cent, ending a three-day rebound as fresh jitters about the outlook for the world economy rattled global markets, dealers said.
They said investors took their cue from Wall Street, where shares turned lower Friday, ending a strong two-day recovery.
Investors were braced for key US economic events this week, including an interest rate decision.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 541.25 points, or 3.97 per cent, to 13,087.91, giving back most of Friday’s 4.10 per cent gain.
The broader Topix fell 51.74 points, or 3.85 per cent, to 1,293.03.
Decliners outpaced gainers 1,377 to 290, with 61 issues unchanged. Turnover dropped to 2.159 billion shares from 2.609 billion Friday.
HONG KONG: Hong Kong share prices closed 4.25 per cent lower, dealers said.
The Hang Seng index closed down 1,068.76 points at 24,053.61 on turnover of 107.79 billion Hong Kong dollars (US$13.82 billion).
The index opened lower, owing to last Friday’s fall on Wall Street and extended losses as Tokyo and Shanghai tumbled, said Peter Lai, director with DBS Vickers.
SINGAPORE: Singapore share prices closed 3.75 per cent lower, dealers said.
The blue chip Straits Times Index closed 118.42 points lower at 3,041.06 on volume of 1.35 billion shares worth 1.64 billion Singapore dollars (1.15 billion US).
KUALA LUMPUR: Malaysian shares closed 1.8 per cent lower, dealers said.
The Kuala Lumpur Composite Index (KLCI) was down 24.86 points at 1,380.54.
Profit-taking set in today after recent strong gains, said S. Sharath, acting head of research at MIDF Amanah Investment Bank.
JAKARTA: Indonesian share prices closed 1.5 per cent lower, dealers said.
The Jakarta composite index closed down 38.44 points at 2,582.05 on volume of 3.86 billion shares valued at 7.46 trillion rupiah (797.43 million dollars).
The concern over the health of the US economy is still undermining market sentiment, Henan Putihrai analyst Thombos Sitanggang said.
Perusahaan Gas Negara fell 400 rupiah to 13,400, Bank Mandiri dropped 150 to 3,150 and Telkom lost 250 to 9,100.
WELLINGTON: New Zealand share prices closed 0.50 per cent lower, dealers said.
The benchmark NZX-50 index fell 18.83 points to 3,710.32.
First NZ Securities research manager Barry Lindsay said today’s retreat suggested the markets had recovered too strongly last week.
Market leader Telecom ended flat at $4.09, Contact Energy was up seven cents to 7.50 and Fletcher Building dropped 24 cents to 10.31.
MUMBAI: Indian share closed down 1.14 per cent, dealers said.
The benchmark 30-share Sensex index fell 208.88 points at 18,152.78.
The market was volatile. The crucial monetary policy meetings ahead will determine near-term trends, said Bhaskar Kapadia, a partner with Pyramid Securities.—AFP
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