Asian stocks continue to slip
Asian stocks tumbled to their biggest two-day drop in a year after Australia’s Rams Home Loans Group said it was unable to refinance $5 billion of debt amid a widening credit crunch. South Korea’s Kospi index plunged 6.9%, its largest loss since June 2002. Macquarie Bank, Australia’s biggest securities company that’s lost almost a third of its value in the past four weeks, led a slide in financial stocks. Toyota and Samsung fell after reports showed US home sales dropped to a four-year low and prices declined in a third of the nation’s cities. BHP Billiton, the world’s biggest mining company, slumped as concerns about slower global growth dragged commodities prices lower. "Blood is hitting the streets, everyone seems to be panicking, and there’s reason to panic," said Patrick Chang, who helps manage $4.5 billion at CIMB-Principal Asset Management Bhd in Kuala Lumpur. "There’s been so much blow-up, we don’t know when it’s going to end. Liquidity is drying up.”" The Morgan Stanley Capital International Asia-Pacific Index lost 2.5% to 141.89, the lowest since March and its biggest two-day decline since June 2006. About 10 stocks retreated for each that gained on Thursday as benchmarks slid across the region. Japan’s Nikkei 225 Stock Average dropped 2% to 16,148.49, its lowest close since November. Sony Corp led Japanese exporters lower after the yen strengthened to the highest against the dollar since March. South Korea’s Kospi plunged the most in five years following a one-day holiday on Wednesday when the MSCI Asia index lost 2.5%. The Standard & Poor’s 500 futures were 0.9% lower on Thursday. US stocks fell on Wednesday on speculation that Countrywide Financial, the nation’s biggest mortgage lender, may be forced into bankruptcy. The S&P 500 erased its gains for the year, dropping 1.4%. US treasury secretary Henry Paulson said financial turmoil will "extract a penalty" US growth rates, yet the economy is strong enough to weather problems without falling into recession, the Wall Street Journal reported on Thursday. Rams Home Loans Group said it was unable to refinance $5 billion of short-term US loans because of a "lack of market liquidity" caused by a global credit rout. It plunged 36% to 86.5 Australian cents, 65% lower than the price at its initial offering last month. "It’s a selling panic," said Mark Mobius, who oversees $30 billion at Templeton Asset Management. "We’re seeing a lot of negative news with very few positives." Countrywide may go bankrupt if creditors force the company to sell assets at depressed prices or investors lose confidence in its ability to raise cash, Merrill Lynch said. KKR Financial Holdingssaid it may lose up to $290 million from a drop in the value of mortgage-backed bonds it owns.
link timesofindia
Asian stocks tumbled to their biggest two-day drop in a year after Australia’s Rams Home Loans Group said it was unable to refinance $5 billion of debt amid a widening credit crunch. South Korea’s Kospi index plunged 6.9%, its largest loss since June 2002. Macquarie Bank, Australia’s biggest securities company that’s lost almost a third of its value in the past four weeks, led a slide in financial stocks. Toyota and Samsung fell after reports showed US home sales dropped to a four-year low and prices declined in a third of the nation’s cities. BHP Billiton, the world’s biggest mining company, slumped as concerns about slower global growth dragged commodities prices lower. "Blood is hitting the streets, everyone seems to be panicking, and there’s reason to panic," said Patrick Chang, who helps manage $4.5 billion at CIMB-Principal Asset Management Bhd in Kuala Lumpur. "There’s been so much blow-up, we don’t know when it’s going to end. Liquidity is drying up.”" The Morgan Stanley Capital International Asia-Pacific Index lost 2.5% to 141.89, the lowest since March and its biggest two-day decline since June 2006. About 10 stocks retreated for each that gained on Thursday as benchmarks slid across the region. Japan’s Nikkei 225 Stock Average dropped 2% to 16,148.49, its lowest close since November. Sony Corp led Japanese exporters lower after the yen strengthened to the highest against the dollar since March. South Korea’s Kospi plunged the most in five years following a one-day holiday on Wednesday when the MSCI Asia index lost 2.5%. The Standard & Poor’s 500 futures were 0.9% lower on Thursday. US stocks fell on Wednesday on speculation that Countrywide Financial, the nation’s biggest mortgage lender, may be forced into bankruptcy. The S&P 500 erased its gains for the year, dropping 1.4%. US treasury secretary Henry Paulson said financial turmoil will "extract a penalty" US growth rates, yet the economy is strong enough to weather problems without falling into recession, the Wall Street Journal reported on Thursday. Rams Home Loans Group said it was unable to refinance $5 billion of short-term US loans because of a "lack of market liquidity" caused by a global credit rout. It plunged 36% to 86.5 Australian cents, 65% lower than the price at its initial offering last month. "It’s a selling panic," said Mark Mobius, who oversees $30 billion at Templeton Asset Management. "We’re seeing a lot of negative news with very few positives." Countrywide may go bankrupt if creditors force the company to sell assets at depressed prices or investors lose confidence in its ability to raise cash, Merrill Lynch said. KKR Financial Holdingssaid it may lose up to $290 million from a drop in the value of mortgage-backed bonds it owns.
link timesofindia
No comments:
Post a Comment