Business | Markets

Asian stocks stumble over news of deepening US recession

Asian stocks stumbled on Wednesday after downbeat data about the US economy showed the recession there was deepening.

  • AP
  • Published: 11:19 December 24, 2008
  • Gulf News

Hong Kong: Asian stocks stumbled on Wednesday after downbeat data about the US economy showed the recession there was deepening.

Japan's Nikkei 225 stock average dropped 198.68 points, or 2.3 per cent, to 8,525.10, after being closed on Tuesday for a holiday.

Shares in Toyota Motor Corp. tumbled 4 per cent in their first trading day since Monday, when the world's largest automaker said it expected to post its first operating loss in almost 70 years. Automakers across the region were hit with heavy selling as well.

Hong Kong's Hang Seng Index closed down 0.3 percent to 14,184.14, while South Korea's Kospi lost -1.3 percent to 1,129.14.

"The end-of-the-year, bear-market, feel-good rally is ending sooner than many expected," said Kirby Daley, senior strategist at Newedge Group in Hong Kong.

"Investors are being hit in the face with the reality of just how bad the US economy is and they're seeing firsthand the effects this is having on the consumer and, as a result, companies like Toyota and US retailers."

Elsewhere, Shanghai's benchmark lost over 1 per cent, while key indices in Australia, Taiwan and Singapore gained. Trading was feather-light throughout Asia, and some markets closed early for the holiday.

Many investors found little reason to buy after reports released overnight in the US showed no signs of a turnaround in the world's largest economy, already in recession.

The government said third-quarter gross domestic product fell at an annual rate of 0.5 per cent. The hard-hit housing sector also continued to deteriorate. New home sales weakened last month to the slowest pace in nearly 18 years, and prices of new homes dropped by the biggest amount in eight months.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from Markets

  1. New corporate rules to be effective from May

  2. Pakistani stocks fall on security fears

  3. Borse Dubai concludes conference

  4. Gold reverses gains as greenback recovers

All articles in Markets

More from Business

Gulf News
Popular in Business
Way to go this DSF
XPRESS

Way to go this DSF

A fun-filled route to guide you to all the happening dos in town

Business Editor's choice