Asian Markets Fall After Historic Downgrade

[LuvNewcastle]

http://www.france24.com/en/20110808-asian-markets-plunge-us-credit-downgrade-stocks-hang-kospi-nikkei-standard-poors?ns_campaign=nl_obs_en&ns_mchannel=email_marketing&ns_source=BOWE_32_20110808&ns_linkname=20110808_asian_markets_plunge_us_credit_downgrade&ns_fee=0&f24_member_id=1033882166246

AP - Asian stocks nose-dived Monday as the first-ever downgrade of the U.S. government’s credit rating jolted the global financial system, reinforcing fears of a rapid slowdown in economic growth. Oil prices extended recent sharp losses, trading below $84 a barrel on expectations that weaker global growth will crimp demand for crude. The dollar was lower against the yen and the euro.

Among the major Asian markets, Hong Kong’s Hang Seng tumbled 4 percent to 20,100.20 and South Korea’s Kospi crumpled 6.7 percent to 1,814.100. Japan’s Nikkei 225 stock average dropped 2.5 percent to 9,067.88. Futures pointed to losses on Wall Street when it opens Monday. Dow futures were off 258 points, or 2.3 percent, at 11,144 and broader S&P 500 futures shed 28.8 points, or 2.4 percent, to 1,169.00.

"It’s not Armaggedon, but it feels like it," said Hong Kong-based analyst Francis Lun, adding that he foresees the territory’s Hang Seng index to sink below 19,000 - a decline of a further 5 percent - before making any kind of comeback.

Banking shares were tainted by fears the sector could face heavy losses as the sovereign debt crisis in Europe continued to brew. Industrial and Commercial Bank of China, the world’s biggest bank by market value, fell 4.1 percent. Port operators -- whose lifeblood of imports and exports would be at risk if the global economy goes bust -- were stung badly. Hong Kong-listed China Shipping Container Lines Co. dropped 10.2 percent. Meanwhile, a strengthening yen, which makes Japanese products more expensive when they are sent overseas, slammed the country’s powerhouse export sector. Hitachi Corp. dropped 2.6 percent. Sony was 2.8 percent down. Mazda Motor Corp. lost 3.1 percent.

[xchrom]

1. Recommend

[mwb970]

2. Jeez, I'm glad I pulled out of stocks in late July.

Once the market turns around, I'll get back in and ride it back up.