Hong Kong (AsiaNews) – Asian markets are in free fall as fears increase of a global financial crisis in the wake of the Lehman Brothers bankruptcy and the takeover of Merril Lynch.
By mid-afternoon trading, Hong Kong's index shed 5.9%; in Tokyo, the Nikkei index was down 5.3%. Both markets were closed yesterday for the autumn holiday, delaying the backlash of the American crisis by one day.
Throughout Asian markets are in the red: the Shanghai index is down by 3.2 its lowest point in 21 months; Seoul is down 5.4%; Taipei 4.7.
Japan’s central bank has injected 2500 billion Yen (circa 17 billion Euros) onto the market in the hopes of creating some financial stability; China’s central bank yesterday lowered interest rates and reduced the amount of reserves demanded from banks.
Bangkok and the Philippines are also in tilt, where markets yesterday registered a low of 4%. Jakarta opened on minus 6.5% and Singapore, by mid afternoon, was down by 2.2%.
So far the Indian market index has lost 5.4%; with markets in the Middle East also registering losses.
The problems are only beginning it seems. “'We're in the middle of a crisis” comments YK Chan of Phillip Asset Management Hong Kong.