From: Onyango Obama Hussein Mugabe <[EMAIL PROTECTED]>
Date: October 7, 2008 3:25:25 AM PDT
To: [EMAIL PROTECTED],
[EMAIL PROTECTED]
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED]
Subject: [ctrl] bailout failed -- markets plunge on fears crisis is
spreading
Reply-To: [EMAIL PROTECTED]
Asian markets plunge on fears crisis is spreading
By ALEX KENNEDY, Associated Press Writer * 18 minutes ago*
SINGAPORE - Asian stock markets plunged Monday as investors took scant
comfort from Washington's passage of a $700 billion bank bailout and
focused
instead on deepening financial turmoil in Europe that threatens to slow
global growth.
Japan's benchmark Nikkei 225 average was down 4.4 percent to 10,452,
while Hong
Kong's Hang Seng index slid 3.7 percent to 17,198.
Markets in mainland China, Australia, South Korea, Singapore and
Thailandalso fell sharply.
Indonesia's key index plunged more than 5 percent.
Traders were spooked by Germany's announcement Sunday of a new bailout
package totaling 50 billion euros ($69 billion) for Hypo Real Estate,
the
country's second-biggest commercial property lender, part of a
scramble by
European governments to save failing banks.
On Sunday, Belgian Prime Minister Yves Leterme said that France's BNP
Paribas SA had committed to taking a 75-percent stake in troubled bank
Fortis NV. British treasury chief Alistair Darling also said he was
ready to
take "pretty big steps that we wouldn't take in ordinary times" to
help the
country weather the credit crunch.
A dismal report Friday on the U.S. job market also added to the gloom,
raising concerns about weakening American consumer demand for Asian
exports.
"This credit crunch looks like it's not going away any time soon,"
said Alex
Tang, head of research at brokerage Core Pacific-Yamaichi in Hong Kong.
"Apart from a credit crunch in Europe, investors are quite concerned
about
the worsening outlook on the U.S. economy."
"We haven't seen any positive developments in Europe or the U.S.,
apart from
the rescue plan," Tang said. "But even with the rescue plan,
investors are
focused on the slowing economy."
Concerns about fallout from the crisis overshadowed any investor
optimism
over the U.S. House of Representatives' approval Friday of a massive
bailout
plan that will allow the U.S. government to buy distressed mortgages and
securities backed by mortgages from banks and other financial
institutions.
U.S. stock index futures were more than a percent lower, suggesting Wall
Street was in for another slide when trading opened Monday morning. On
Friday, the Dow Jones industrial average fell 157.47, or 1.5 percent, to
10,325.38.
In currencies, the dollar rose against the euro, which slid to
$1.3618 from
$1.3774 late Friday, but declined to 103.11 yen from 105.30 yen Friday.
Oil prices tumbled on speculation that slower global growth will cut
crude
demand. Light, sweet crude for November delivery was down $1.85 to
$92.03 a
barrel in Asian electronic trading on the New York Mercantile Exchange.
http://news. yahoo.com/ s/ap/20081006/ ap_on_bi_ ge/world_ markets
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