Saturday, August 23, 2014   

Asian markets dive over renew fears
(01-30 14:58)

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 Turkey and South Africa hiked interest rates.
The dollar and euro sank against the yen as dealers scurried into safer investments after the Fed decision, while sentiment took a further blow from data confirming Chinese manufacturing contracted in January, AFP reports.
Tokyo dived 2,45 percent, or 376.85 points, to close at 15,007.06, leading other markets lower.
Sydney shed 0.78 percent, or 40.9 points, to close at 5,188.1 and Hong Kong lost 0.48 percent, or 106.19 points, to end at 22,035.42 in half-day trading ahead of the Chinese New Year holiday.
Shanghai lost 0.25 percent in the afternoon.
In late trade Singapore was down by 0.68 percent, Manila by 0.75 percent and Jakarta 0.68 percent.
Taipei and Seoul were closed for public holidays.
Wall Street sank Wednesday after the Fed said it would reduce its bond-buying program by US$10 billion a month to $65 billion, citing a pick-up in the US economy. That followed a similar announcement in December.
Investors took flight after the announcement, which stoked fears of 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 1.01 percent and the Nasdaq 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 developing nation fears.
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 HSBC confirmed its purchasing managers' index for China had fallen to 49.5, the lowest figure since July.
Rate hikes by Turkey and South Africa Wednesday failed to stem losses in their currencies as developing economies around the world battle against foreigners 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:
Jetstar Hong Kong sells 3 aircraft as it awaits approval (08-22 18:48)
Hang Seng ends higher (08-22 16:27)
Nikkei ends lower (08-22 15:06)
Hang Seng up by break (08-22 12:30)
Nikkei flat by break (08-22 10:42)
Nikkei opens higher (08-22 10:24)
Hong Kong stocks open higher (08-22 10:23)
UK state borrowing halves in July: official data (08-21 18:24)
HK price level rises faster in July (08-21 18:18)
Eurozone economy still in timid recovery: survey (08-21 18:06)

More breaking news >>

© 2014 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts

 


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2014, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.