-Caveat Lector- http://www.cnnfn.com/1999/10/18/markets/asiawrap/ Mounting worries over U.S. equity losses spark heavy sell-off across Asia October 18, 1999: 5:57 a.m. ET LONDON (CNNfn) - Growing fears of instability in the U.S. economy broadsided Asian markets Monday, sending Japanese blue chips tumbling 326 points. Friday's dramatic 266-point sell-off on Wall Street sparked heavy declines across Asia. Hong Kong was closed for a public holiday. Japan's benchmark Nikkei 225 average closed down 326.24 points, or 1.85 percent, at 17,275.33, off earlier lows as traders showed frayed nerves following the Dow Jones industrial average's worst one-week point loss in its history. The Dow shed 630 points over the week - or nearly 6 percent - with the hardest hit coming Friday in the form of a 2.6 percent freefall prompted by strong inflation data and cautionary comments by U.S. Federal Reserve Chairman Alan Greenspan. High-tech stocks came under heavy pressure in Tokyo as investors raced to unload issues deemed overvalued in light of the recent market jitters. Singapore and Thailand both ended more than 3 percent lower, while South Korea suffered the region's most stinging setback, plummeting 4.2 percent. The across-the-board retreat was a measure of Asia's apprehension that a possible burst in the U.S. equity bubble could spill over to U.S.-reliant export markets in Asia, jeopardizing the region's economic recovery. Friday's plunge briefly sent the leading gauge spinning below the psychologically significant 10,000 mark. The tech-heavy Nasdaq Composite index lost 2.7 percent, while the S&P 500 shed 2.8 percent. In Tokyo, the Wall Street downturn and a firming yen dealt a sharp blow to the Nikkei 225, with export-reliant electronics manufacturers especially hard hit. Nikkei traders fear Wall Street could suffer more damage ahead of the Fed's next interest rate-related policy meeting in early November. In Tokyo, fears of instability on Wall Street ate into the electronics sector. Fujitsu Ltd. skidded 10.47 percent to 2,865 yen as NEC Corp. gave up 4.76 percent to 2,100. Among the other heavy high-tech losers, Sony Corp. fell 6.03 percent, while Internet investor Softbank Corp., gave up 7.5 percent. Japan's number-two carmaker, Nissan Motor Co., divulged plans after markets closed to cut more than 21,000 jobs and slash production output by 30 percent under a broad restructuring tied to its new partnership with France's Renault (PRNO) Nissan shares closed down 7.14 percent at 637 yen. Sakura Bank succumbed to profit-taking just days after announcing its plans to merge with rival Sumitomo Bank by April 2002, creating the world's second-largest banking group. Sakura shares slid 10.93 percent to 815 yen. Markets are expected to keep a close eye on U.S. consumer price data due out Tuesday for further hints about the next step in interest rates. The dollar weakened to 105.05 yen late Monday, down from a level of 105.40 late Friday in New York. The euro was quoted at 114.33 yen. Traders are concerned that if the yen strengthens below the 105 level, it could trigger a slippage in the Nikkei below 17,000. Singapore's Straits Times index lost 3.29 percent to 1,993.45, weighed down by slumps in index heavyweights Singapore Press Holdings and DBS Group. South Korean stocks saw the worst bloodshed, reeling 4.22 percent to 826.25 as blue chips came under continued program selling pressure. Australia's All Ordinaries skidded 2.3 percent to 2,796.8. The downturn tarnished the long-awaited second installment of government shares in state-controlled telecom giant Telstra. Manila ended 0.77 percent lower, while Taiwan shares slid 1.07 percent amid local dismay that the Finance Ministry had decided against a further cut in banks' business tax rate from 2 to zero percent. Kuala Lumpur shares retreated 0.82 percent Monday, while Jakarta traders ignored a stronger rupiah to tumble 2.6 percent. Thai stocks followed regional peers lower, giving up more than 3 percent by the close. --from staff and wire reports DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance—not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. 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