Banks,Metals Drag Tokyo 2% Lower

123jump.com Staff
16 Aug, 2007
New York City

Asian markets were battered as investors sold stocks across the region. Banking and real estate stocks declined on the worries of rising mortgage market turmoil in the U.S. Nikkei 225 fell 2%. Of the stocks in the index 196 fell reflecting a broad sell-off in the market. South Korea plunged 7%. Most markets in Asia fell between 3% and 6%.

[R]6:00AM New York, 7:00PM Tokyo- Asian stocks suffered heavy losses on heightened investor concerns over the U.S. credit market turmoil. Nikkei 225 dropped 2% and in the region South Korea plunged 7% leading the decliners.[/R]

Asian shares were battered across the region as investors withdraw from markets. South Korea led the region with a loss of 6.93% followed sharp declines of 6.6% in Malaysia, 6% in Philippines, 5.94% in Indonesia, 4.5% in Taiwan and India, and more than 3% in Singapore, Taiwan and Hong Kong. Japan lost 2%.

In Tokyo trading Nikkei 225 lost 1.99% or 327.12 to 16,148.49 led by declines in industrial shares. Over 20 stocks in the index fell more than 4%. Out of the 225 shares in the index 196 fell, 25 gained and 4 traded unchanged.

The Bank of Japan yesterday said it would withdraw 2 trillion-yen from the market, as anxiety over a potential credit squeeze paled into insignificance. BOJ had earlier sucked another 1.6 trillion-yen from the market, funds pumped during the global credit crunch since last Friday. Overnight rates had fallen to as low as 0.2%, suggesting liquidity positions had improved, bank officials said. The yen firmed to 116 against the dollar with fresh prospects it may touch 115 per dollar.

Mistumi Electric led the decliners in the Nikkei index with a loss of 7.3% followed by losses of 5.4% in Toshiba, 5.3% in Kirin Holdings, 5% in Konica Minolta, Sojitz Corporation, Nikon, and Nippon Light Metals. Credit Saison and Shisei Bank fell nearly 4%. Secom Company led the gainers in the index with a rise of 4.6% followed by gains of 4% in Sumitomo Trust, 3.5% in Toho Company, and 2.8% in Mitsubishi UFJ.

Of the 225 stocks in the index 166 declined more than 1% and 11 gained more than 1%. Shipping companies, steel, and oil companies fell more than 2% in the sell-off. Japan Steelworks fell 3.6%, Kobe Steel dropped 4%, Nippon Oil lost 3%, and Mitsui OSK declined 1.8%.

In Seoul trading Kospi Composite Index plunged 7% to 1,691.98 after the Wednesday holiday break catching up with other Asian losses. Of the 733 shares in the index only 18 gained. Over 508 million shares worth 8.4 trillion won were traded. Government said the option to pump additional liquidity to steady financial markets was open.

Bank and oil related shares dropped sharply. Dong Wha Pharm lost 15% and Daehou Fire& Mor dropped 14.90%. S&T Motors crashed 14.79%. while Rocket Electric Co dragged 14.76%. Meritz Fire skid 13.60% with Sung Chang Enter falling 12.62%. Several hundred stocks fell by more than 10%. Bank stocks were also worried about the contagion effect of the U.S. subprime mortgage market. Myung Sung rallied 14.95% while Hyundai Paint Industries surged 14.79 %. Acts Corpn rose 14.78% while Ilshin Stone pushed 5.99%. Ilkyunh rose 1.99% with Sung Shin Cement surging 1.78%. FNC Kolon up 0.83% and Sung Bo Chemical added 0.64%.