Business | Markets
Asia stocks, US index futures fall as credit crisis widens
Asian stocks, US and European index futures fell on Monday as deteriorating credit markets forced new bailouts of Hypo Real Estate Holding AG and Fortis.
- Bloomberg
- Published: 14:02 October 6, 2008
Dubai: Asian stocks, US and European index futures fell on Monday as deteriorating credit markets forced new bailouts of Hypo Real Estate Holding AG and Fortis.
The euro slumped to a 13-month low, while Treasuries advanced.
Japan's Mitsubishi UFJ Financial Group Inc. and Australia's Macquarie Group Ltd. tumbled more than 9 per cent after Germany agreed on a $68 billion package for Hypo and BNP Paribas SA said it will take control of Fortis in Belgium and Luxembourg.
Sumitomo Metal Mining Co. lost 7.1 percent after copper and gold prices sank amid concern a $700 billion US bank bailout won't prevent a slowdown in global economic growth.
"It will probably be a rough week for global investors as they realize the credit crisis has a long way to play out," said Frederic Dickson, who helps oversee $25 billion as chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. "US action was an absolutely essential first step, and global intervention is needed."
The MSCI Asia Pacific Index fell 4.1 per cent to 100.31 as of 3:54 pm in Tokyo, headed for the lowest close since July 20, 2005.
The US Standard & Poor's 500 Index futures fell 1.8 per cent, while the Dow Jones Euro Stoxx 50 Index futures sank 5.3 percent. The euro fell 1.5 per cent to $1.3569.
Japan's Topix index lost 4.7 percent to 999.05, its lowest since December 2003.
All markets open for trading in Asia declined apart from Sri Lanka. South Korea's Kospi lost 4.3 per cent and the won dropped 3.7 per cent. China's CSI 300 Index fell 4.5 per cent, as trading resumed after a one-week holiday.
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