Asian stocks continue to slide
Asia's stock markets continued to tumble Thursday on concerns that a slowing U.S. economy could spell trouble for Asia's export-dependent economies. The losses extended the rout that began in China Tuesday and swept through global markets.
East Asia's largest markets — in Japan, Taiwan and China — ignored a rebound on Wednesday on Wall Street, where stocks rose after encouraging comments on the economy by Ben S. Bernanke, chairman of the Federal Reserve.
Japan's benchmark Nikkei-225 fell as much as 1.55 percent, while the benchmark in Taiwan fell as much as 2.67 percent. Stocks in China also dropped, with one benchmark index of exchanges there falling roughly 1 percent. The stock market in South Korea was closed for a public holiday.
Bernanke told a congressional panel that Wednesday's slump in stock prices did not change the Fed's forecast for moderate economic growth in the United States. His testimony helped restore confidence among investors, sending the Dow Jones industrial average up 52.39 points, or 0.4 percent. The Standard & Poor's 500-stock index closed up 0.56 percent and the Nasdaq rose 0.34 percent.
Bernanke's optimism was echoed by economists around Asia, who said that the latest sell-off was more a sign of investors' anxiety about record-breaking rallies over the past several months than a reflection of any downturn in Asia's economic prospects.
"We're seeing some blowing off of some froth in the equity markets and that's probably a good thing," said Peter Morgan, regional economist at HSBC in Hong Kong. Morgan likened the latest drop in stock prices to the correction in emerging market stocks that began in India last May. Stocks there dropped almost 30 percent, but had recovered by mid-October along with the region's other markets.
"We don't think it has any major macroeconomic significance," he said of this week's tumble.
Chinese stocks, for example, had more than doubled in the year leading up to Tuesday's slide.
Related News :
Wall Street's unnerving drop raises global questions
Malaysian Bonds Advance as Stock Prices Fall; Ringgit Weakens
Malaysia's local-currency bonds gained on speculation slowing growth in the U.S. will curb demand for exports from the Asian nation's biggest market. The ringgit weakened for a third day.
Five-year yields held near the lowest in 15 months after Asian stocks slumped for a second day, adding to the steepest drop in eight months yesterday as investors reduced risk. The government is scheduled to auction an undisclosed amount of three-year notes this month as 4.8 billion ringgit ($1.37 billion) of the debt matures.
``There's justification to switch to bonds if the stock market continues to tank,'' said Jason Wong, head of fixed-income research at CIMB Investment Bank Bhd. in Kuala Lumpur. ``People are more likely to be buying debt before the large amount that is maturing because supply is looking a bit insufficient this month.''
The yield on the 3.718 percent note due in June 2012 dropped 1 basis point, or 0.01 percentage point, to 3.62 percent as of 3:40 p.m. in Kuala Lumpur, according to the central bank. The price rose 0.06, or 60 sen per 1,000 ringgit face amount, to 100.48.
Japan's Nikkei 225 Stock Average lost 0.9 percent while the Shanghai and Shenzhen 300 Index, which triggered the global stock rout on Feb. 27, dropped another 2.8 percent. Malaysia's Composite Index fell as much as 1.1 percent today.
Malaysia's $147 billion economy grew 5.7 percent in the fourth quarter, the slowest in a year, compared with 5.8 percent in the third quarter, after overseas demand waned, Bank Negara Malaysia said yesterday.
The nation relies on the U.S. for one-fifth of its exports, primarily electronics and electrical goods. Exports growth slowed to 6.2 percent from November's 18 percent gain, the government said last month.
Malaysia's currency swung between gains and loses today, and was last 0.1 percent lower at 3.5050 against the dollar in Kuala Lumpur, according to data compiled by Bloomberg. It earlier rose as much as 0.4 percent.
``The developments in these two days in the global, regional and domestic financial markets reflect the potential for contagion,'' Bank Negara said in a statement after the market closed yesterday. While Malaysia is not insulated, the developments ``have not had any material impact on the markets,'' it said.
Source : www.biznewsdb.com
Malaysia Asian stocks Malaysian Bonds stock prices Ringgit
East Asia's largest markets — in Japan, Taiwan and China — ignored a rebound on Wednesday on Wall Street, where stocks rose after encouraging comments on the economy by Ben S. Bernanke, chairman of the Federal Reserve.
Japan's benchmark Nikkei-225 fell as much as 1.55 percent, while the benchmark in Taiwan fell as much as 2.67 percent. Stocks in China also dropped, with one benchmark index of exchanges there falling roughly 1 percent. The stock market in South Korea was closed for a public holiday.
Bernanke told a congressional panel that Wednesday's slump in stock prices did not change the Fed's forecast for moderate economic growth in the United States. His testimony helped restore confidence among investors, sending the Dow Jones industrial average up 52.39 points, or 0.4 percent. The Standard & Poor's 500-stock index closed up 0.56 percent and the Nasdaq rose 0.34 percent.
Bernanke's optimism was echoed by economists around Asia, who said that the latest sell-off was more a sign of investors' anxiety about record-breaking rallies over the past several months than a reflection of any downturn in Asia's economic prospects.
"We're seeing some blowing off of some froth in the equity markets and that's probably a good thing," said Peter Morgan, regional economist at HSBC in Hong Kong. Morgan likened the latest drop in stock prices to the correction in emerging market stocks that began in India last May. Stocks there dropped almost 30 percent, but had recovered by mid-October along with the region's other markets.
"We don't think it has any major macroeconomic significance," he said of this week's tumble.
Chinese stocks, for example, had more than doubled in the year leading up to Tuesday's slide.
Related News :
Wall Street's unnerving drop raises global questions
Malaysian Bonds Advance as Stock Prices Fall; Ringgit Weakens
Malaysia's local-currency bonds gained on speculation slowing growth in the U.S. will curb demand for exports from the Asian nation's biggest market. The ringgit weakened for a third day.
Five-year yields held near the lowest in 15 months after Asian stocks slumped for a second day, adding to the steepest drop in eight months yesterday as investors reduced risk. The government is scheduled to auction an undisclosed amount of three-year notes this month as 4.8 billion ringgit ($1.37 billion) of the debt matures.
``There's justification to switch to bonds if the stock market continues to tank,'' said Jason Wong, head of fixed-income research at CIMB Investment Bank Bhd. in Kuala Lumpur. ``People are more likely to be buying debt before the large amount that is maturing because supply is looking a bit insufficient this month.''
The yield on the 3.718 percent note due in June 2012 dropped 1 basis point, or 0.01 percentage point, to 3.62 percent as of 3:40 p.m. in Kuala Lumpur, according to the central bank. The price rose 0.06, or 60 sen per 1,000 ringgit face amount, to 100.48.
Japan's Nikkei 225 Stock Average lost 0.9 percent while the Shanghai and Shenzhen 300 Index, which triggered the global stock rout on Feb. 27, dropped another 2.8 percent. Malaysia's Composite Index fell as much as 1.1 percent today.
Malaysia's $147 billion economy grew 5.7 percent in the fourth quarter, the slowest in a year, compared with 5.8 percent in the third quarter, after overseas demand waned, Bank Negara Malaysia said yesterday.
The nation relies on the U.S. for one-fifth of its exports, primarily electronics and electrical goods. Exports growth slowed to 6.2 percent from November's 18 percent gain, the government said last month.
Malaysia's currency swung between gains and loses today, and was last 0.1 percent lower at 3.5050 against the dollar in Kuala Lumpur, according to data compiled by Bloomberg. It earlier rose as much as 0.4 percent.
``The developments in these two days in the global, regional and domestic financial markets reflect the potential for contagion,'' Bank Negara said in a statement after the market closed yesterday. While Malaysia is not insulated, the developments ``have not had any material impact on the markets,'' it said.
Source : www.biznewsdb.com
Malaysia Asian stocks Malaysian Bonds stock prices Ringgit
Labels: Malaysia Business
posted by Ah Yun Wong at
6:36 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home