firm in Hong Kong Monday, Oct. 27, 2008. Asian stocks swung mostly lower
in choppy trade Monday as investors braced for more volatility
after last week's massive sell-off. The Hang Seng index closed
the morning session down 532 points, or 4.22 percents at 12,086.38 points.
(AP Photo/Vincent Yu)
World stock markets slumped again Monday with the Nikkei index in Japan closing at its lowest in 26 years as the financial crisis drove up the yen, piling the pressure on the country's exporters.
Tokyo's Nikkei 225 index closed down 6.4 percent to 7,162.90—the lowest since October 1982. Hong Kong's Hang Seng Index tumbled 12.7 percent to 11,015.84, its lowest close in more than four years and biggest daily decline since 1991.
Elsewhere in Asia, the KOSPI in Seoul, South Korea, was the lone bright spot, closing up nearly 1%. The index rallied after South Korea's central bank slashed its key interest rate Monday by three-quarters of a percentage point - its largest cut ever - in an effort to fend off the global financial turmoil.
In Japan, worries about the impact of the surging yen on Japanese export earnings have hit the Nikkei hard. investors reacted with disappointment to government efforts to bolster the economy. Japan's finance minister verbally intervened in the market by suggesting the government is willing to counter the strengthening yen.
Mounting concerns about the yen and the effect of the financial crisis on currency markets prompted the world's seven leading industrial nations to issue a statement Sunday warning about the "recent excessive volatility" in the value of the Japanese currency, which is rising against the U.S. dollar towards the 90 yen level and near 13-year highs.
Japan's stock market had a miserable and manic Monday, with
the key stock index plunging more than 6 percent to its lowest close
in more than a quarter century. The Nikkei 225 index shed 486.18 points,
or 6.36 percent, to 7,162.90 _ the worst closing level since October 1982.
(AP Photo/Katsumi Kasahara)
The G7 said that they continue to monitor markets closely, and cooperate as appropriate. The statement has raised the prospect of coordinated intervention to stem the yen's appreciation. A stronger yen can hurt the competitiveness of Japanese exports by driving up the price of that country's goods.
European markets followed Asia lower, with benchmarks in Britain, Germany and France trading down more than 4 percent in early trading.
In the U.S. on Monday, the Federal Reserve has tried to get credit flowing by announcing plans to lend perhaps $1 trillion or more to major businesses through the use of commercial paper, the primary form of borrowing large companies use to fund their day-to-day operations. US futures point to falls on Monday.Futures tumble as turmoil sweeps markets worldwide.
Related Posts :
- Ukraine and Hungary to get IMF Loan
- South Korea slashed interest rate by 75bp to bolster markets
- 10/24/2008 Market Recap - Global Investors Retreat (Update 2)
- CNN Money: Wall Street ready for another drop, October 27, 2008 6:21 AM ET
- CNN Money: Global stocks suffer brutal losses, October 27, 2008 6:18 AM ET
- Reuters: Stock Market News & Stock Quotes, October 27, 2008
- Breitbart: World markets slump; Nikkei at 26-year low, October 27, 2008 6:26 AM ET
- The Wall Street Journal: Asian Shares Decline in Volatile Session , October 27, 2008 07:12 AM ET
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