Business | Markets
Overnight losses on Wall Street cause Asian markets tumble
Asian markets tumbled in early trading Thursday after overnight losses on Wall Street and amid persistent worry over the likely impact of a US recession.
- AP
- Published: 13:16 March 20, 2008
Bangkok: Asian markets tumbled in early trading Thursday after overnight losses on Wall Street and amid persistent worry over the likely impact of a US recession.
Hong Kong's Hang Seng Index fell as much as 4.4 percent in morning trade, while on the Chinese mainland, the Shanghai Composite Index dropped 6.5 percent to 3,516.33 - its lowest level since June.
Both indexes later came off their early lows. Near midday the Hang Seng was at 21,158.8, down 3.2 percent. The Shanghai index finished its morning session at 3,644.9, down 3.1 percent.
Markets also fell in Australia, New Zealand, South Korea and Thailand.
Financial markets were closed in Japan and India for national holidays.
"Until the US market becomes stable, the Hong Kong market is not likely to consolidate its upward trend," said Castor Pang, an analyst at Sun Hung Kai Financial.
Investors continue to worry about the world's financial system and the state of the US economy.
In the US on Wednesday, talk swirled about whether further write-downs from financial institutions are in the offing after Merrill Lynch & Co. filed a lawsuit against a company involved in a debt transaction with the investment bank.
The Dow Jones industrial average fell 2.36 percent to 12,099.66 - just a day after it surged 3.5 percent.
Investors have seen advances evaporate many times during the course of the credit crisis.
After the big rise following the US Federal Reserve's interest rate cut Tuesday, many wanted to preserve their gains and that led to Wednesday's sell-off, analysts said.
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