11/06/2008, 00.00
ASIA

Asian markets down: the recession eclipses the “Obama phenomenon”

All stock markets are negative, following Wall Streets closure yesterday at -5%. Oil prices drop. Large companies that trade with America and airlines worst hit by recession.

Hong Kong (AsiaNews) – All Asian stock markets are showing negative drops in the wake of Wall Streets closure yesterday at minus 5, despite euphoria over Barack Obama’s election victory.

Investors are convinced of a reduced American economy and a consequential reduction in trade leading to a long and deep recession. Data published yesterday show the private sector in the USA lost over 150 thousand jobs in October; in September it lost 26 thousand.

Japan's Nikkei share average slumped 5.7 per cent, led by high-profile exporters like Canon and Honda that are expected to be affected the most by a steep drop in overseas demand as consumers cut back spending. Seoul’s index was down 6.2 per cent, snapping a five-day winning streak. Consumer gadget maker Samsung Electronics and the world's fourth-largest steel producer Posco were the biggest drags on the index.

Sydney too lost 4%; while New Zealand opened on minus 1.45.

Taiwan stocks fell 5.10 per cent, triggering a new wave of selling despite local optimism for closer ties between Taiwan and mainland. Singapore shares were down 4.08 per cent.

By the end of morning trading Hong Kong lost 6.40%, dragged down by the drop in share value of the airline Cathay Pacific, down 13.3% in anticipation of a drastic cut in commodities.

Shanghai lost 2.5%; Jakarta 4.07; Kuala Lumpur 2.37; Bombay 3.31.

In morning trading the price of crude oil for December dropped by 27%, settling at 65.03 dollars a barrel.

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