Friday, August 28, 2015   

Asian shares dive as emerging market fears come back
(01-30 11:21)

Asian markets slumped Thursday, extending a global rout on renewed fears about emerging economies after the US Federal Reserve pressed ahead with its stimulus reduction and central banks in Turkey and South Africa jacked up interest rates.
The dollar and euro sank against the yen as dealers scurried into safer investments after the Fed decision, while Asian sentiment took a further blow from data showing Chinese manufacturing contracted in January, AFP reports.
Tokyo dived 3.33 percent by the break, Sydney shed 1.00 percent, Hong Kong fell 1.42 percent and Shanghai lost 0.20 percent. Singapore was down by 1.02 percent, Manila by 1.37 percent and Jakarta 1.15 percent.
Taipei and Seoul were closed for public holidays.
Wall Street sank on Wednesday after the Fed said it would reduce its bond-buying programme by US$10 billion a month to US$65 billion, citing a pick-up in the US economy. The move followed a similar announcement in December.
Investors took flight after the announcement, which stoked fears of huge capital flows from emerging markets that have benefited from the Fed's cheap money policies, as dealers look for safer investments back home.
In New York the Dow dived 1.15 percent, the S&P 500 fell 1.01 percent and the Nasdaq shed 1.14 percent. London, Frankfurt and Paris were all down too ahead of the Fed announcement.
Global equity and forex markets have been in turmoil since the end of last week after a plunge in the Argentine peso sparked fresh worries about developing economies.
Anxiety about economic growth has been exacerbated by preliminary data from HSBC indicating manufacturing activity in China -- the world's second-biggest economy -- had contracted in January.
On Thursday the banking group confirmed that its purchasing managers' index for China had fallen to 49.5 this month, the lowest figure since July.
Sharp rate hikes by Turkey and South Africa on Wednesday failed to stem heavy losses in their currencies as developing economies around the world battle against foreign traders repatriating their cash.
Russia, Brazil and Argentina also faced further drops in their units, despite the International Monetary Fund stressing there was not a general panic and that each faces specific challenges.   
Other Business breaking news:
Bank of China and AgBank report marginal earnings growth (1 hr 18 mins ago)
UK reports 0.7pc second quarter growth (2 hrs 12 mins ago)
Shanghai stocks rally 4.8pc at close, Hang Seng gives up gains (08-28 16:25)
Dow leaps 200 points at open (08-27 22:34)
US reports broad-based 3.7pc growth sparked by consumer spending and business investment (08-27 22:05)
People’s Bank of China injects 150b yuan into market (08-27 18:53)
Headline Daily continues to set the pace (08-27 18:43)
Sing Tao media operations hold ground against competitors (08-27 18:21)
(Market turmoil) Late rally propels China stocks (08-27 17:54)
(Market turmoil) European benchmarks recover (08-27 17:49)

More breaking news >>

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