Asian Markets Sharply Lower Again: Nikkei Down 6%, Hang Seng Down 12%

October 27th, 2008

Europe is just getting underway and it’s the same: Sharply lower again.

Via: AP:

Asian stock markets resumed their slide Monday, with Japan’s Nikkei stock index falling to a 26-year low, as government rescue measures failed to ease fears of a prolonged global recession.

Investors were scared to wade back into equities, worried a stream of economic data from the U.S. this week could bring more bearish news about the world’s largest economy and trigger another round of selling, analysts said. Selling by investment managers, bracing for another wave of redemptions, also fed the declines, they said.

“We’re seeing a lot of panic selling,” said Peter Lai, investment manager at DBS Vickers in Hong Kong. “People are just liquidating … No body can predict where the bottom is.”

Tokyo’s Nikkei 225 index, after trading higher in the morning, closed down 6.4 percent to 7,162.90 — the lowest since October 1982. Hong Kong’s Hang Seng Index tumbled more than 12 percent to 11,099 points.

The sharp declines across most of Asia came amid another round of government measures to boost their markets. In South Korea, the central bank slashed its key interest rate Monday by three-quarters of a percentage point — its biggest cut ever — to prevent Asia’s fourth-largest economy from lurching into recession.

Australian and Hong Kong central bankers injected funds into their markets to ensure liquidity. Japan’s prime minister urged officials to draw up measures to calm volatile stock markets and to fend off further fallout from the crisis.

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One Response to “Asian Markets Sharply Lower Again: Nikkei Down 6%, Hang Seng Down 12%”

  1. tochigi says:
    October 27, 2008 at 8:55 am

    imaginary quote from Japan’s bird-brained PM (apologies to all those birds demonstrably more intelligent than that ASO):

    “Can we PLEASE make sure we double everyone’s pr0zac dose before we let them anywhere near their friggin’ stock portfolios! I want CALM! Do you hear me? CALM! No more volatile stock markets, enough is enough! How am I supposed to read my favourite manga in peace if I keep getting phone calls from these dorks running our goddamn banks.”

    mmmm, lowest level since 1982?
    cascading collapse scenario, anyone?

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