Friday, November 27, 2015   

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.
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British bank Barclays fined US$108m over financial crimes risk (11-26 18:08)
Hang Seng gives up gains at close (11-26 16:39)
Alibaba Group makes move on SCMP, insider says (11-26 14:28)
HK, China stocks rally (11-26 13:50)
Deere & Co posts profit, but sales of tractors, bulldozers drop (11-26 13:33)
US state demands fixes for 16,000 more Volkswagen, Audi, and Porsche diesels (11-26 13:11)
Volkswagen fined US$12.3 over dirty Tiguan diesels in Korea (11-26 12:39)
Osborne abandons UK tax credits (11-25 21:32)

More breaking news >>

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