Asian stock markets slump over fears for auto industry
Hong Kong (AsiaNews/Agencies) – The most important Asian markets, Hong Kong, Shanghai and Tokyo are down by almost 7%. Analysts confirm that it is the knock-on effect of the US Senates rejection yesterday of a bail-out plan for the struggling American auto industry, which had set out an aid package of 14 billion dollars.
By midday the Hong Kong index was down 6.9%. Over the past few days the Hang Seng had risen 13%, after Beijing’s decision to fight the slowing economy.
Shanghai was also hit down 3%. All titles linked to supplies for the US car industry were down between 5-6%.
In Tokyo, the Nikkei was already at minus 1%. When news arrived of the US rejection, stocks slumped by 6.6%. Toyota, Nissan and other car industry stocks continued to plummet.
Analysts fear the risk of bankruptcy for the “Big 3” car manufacturers in America (Ford, General Motors, Chrysler).
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