Asia, Europe Fall, ING Historic Loss

123jump.com Staff
12 Nov, 2008
New York City

Global markets struggle to find footing as politicians around the world struggle to save financial systems and devise plans to support sagging economic growths. NTT DoCoMo agrees to pay $2.7 billion for 27% stake in Tata Teleservices. ING reports its first quarterly loss ever.

[R]9:45AM New York – ING falls on historic quarterly loss. NTT DoCoMo takes a stake in Indian mobile carrier.[/R]

Global markets struggle to find footing as politicians around the world struggle to save financial systems and devise plans to support sagging economic growths.

Metal prices declined in Asian trading and crude oil futures fell below $58 a barrel in the region. Resource stocks in Australia and steel and other metals companies in China and Japan fell.

Nikkei 225 index dropped below book value in the intra-day trading as local investors continue to sell stocks. Japan stocks have been battered by the rising yen, falling exports and weak domestic economy.

NTT DoCoMo Inc, the largest mobile carrier in Japan agreed to take a stake in Tata Teleservices Ltd. Japanese carrier will pay $2.7 billion for 26% stake in the fourth largest mobile carrier in India. Mobile subscriber base in India is growing at 50% a year and recently crossed 315 million, only second largest to China and larger than in the U.S.

NTT DoCoMo only five months ago agreed to pay $350 million or 30% stake in TM International Ltd. in Bangladesh.

In European trading, stock markets edged higher in cautious trading.

ING Groep NV, the largest Dutch insurance company reported its first quarter loss in its history. Revenue in the third quarter declined 14.7% to 15.5 billion euros and reported net loss of 478 million euros compared to profit of 2.3 billion euros. In the quarter the company reported net loss of 22 euro cents compared to profit of 1.08 euros.

ING wrote down 1.5 billion euros of assets in the quarter and the company will suspend the dividend for the rest of the year with total dividend for 2008 at 74 euro cents a share.

The insurance company, first to seek state assistance will complete its 10 billion euros sale of securities that will be counted towards its capital Tier 1 ratio on November 12. The capital injection will lift the ratio to 10% and debt to equity ratio to 10%.

ING ((ING)) declined 2.9% or 83 cents in Amsterdam trading to 28.22 euros.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 113.79 or 1.29% to 8,695.51, Hang Seng index in Hong Kong decreased 101.81 or 0.73% closed to 13,939.09 CSI 300 index in China higher 20.46 or 1.15% closed to 1,801.82. ASX 200 index in Australia decreased 33.60 or 0.85% to close 3,927.30. The KL Composite index in Malaysia lower 4.26 or 0.48% closed to 890.34.

The Kospi Index in South Korea decreased 4.87 or 0.43% to close at 1,123.86. SET index in Thailand closed lower 6.61 or 1.49% to 435.70 and JSE Index in Indonesia decreased 9.94 or 0.74% to 1,326.62. The Sensex index in India decreased 303.36 or 3.08% closed to 9,536.33.

Europe Markets Review

In London FTSE 100 Index traded higher 51.40 or 1.21% to 4,298.09, in Paris CAC 40 Index increased 29.80 or 0.89% to 3,366.21 and in Frankfurt DAX index traded higher 38.04 or 0.80% to 4,799.62. In Zurich trading SMI increased 5.35 or 0.09% to 5,886.14.