Asian Stocks Down 5%, Currencies Drop 2%

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

Asian stocks fell sharply as the U.S. politicians added more uncertainties to the markets. Lawmakers in the U.S. send conflicting signs regarding General Motors bailout and U.S. Treasury Secretary keeps changing his focus. Asian markets fell more than 5% and currencies declined 2% or more.

[R]9:35AM New York – Asian currencies and stock markets plunge. The U.S. trade deficit shrinks but remains high.[/R]

U.S. trade deficit in September declined after exports and imports both fell. In September deficit fell to $56.5 billion from revised $59.1 billion in August.

Total exports including goods and services in September were $155.4 billion and imports were $211.9 billion. In the month goods trade deficit fell $1.5 billion to $69.6 billion and services surplus increased $1.1 billion to $13.1 billion.

For the three months ending in September exports of goods and services averaged $162.9 billion and imports of goods and services averaged $221.9 billion with an average trade deficit of $59 billion.

Asian markets fell sharply on the back of weakness in New York trading. Australia, Hong Kong, Japan and India dropped at least 5%.

Asian currencies declined sharply. Indonesian rupiah dropped 2% to 11,800 reaching the low reached seven years ago. Korean won declined 2.2% to 1,391.50 and Thai baht fell to 35.019. Singapore dollar declined to S$1.512 and Australian dollar to 63.88 U.S. cents. Rupee in India dropped 2.3% to 49.30 at close and has lost now 20% for the year.

China’s industrial production in October rose at a slower pace of 8.2% after rising at 11.4% in September. Crude steel production declined at 17% and electricity generation fell 4% in the month.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 456.87 or 5.25% to 8,238.64, Hang Seng index in Hong Kong decreased 717.74 or 5.15% closed to 13,221.35 CSI 300 index in China higher 72.26 or 4.01% closed to 1,874.08. ASX 200 index in Australia decreased 230.00 or 5.86% to close 3,697.30. The KL Composite index in Malaysia lower 9.75 or 1.10% closed to 880.59.

The Kospi Index in South Korea decreased 35.42 or 3.15% to close at 1,088.44. SET index in Thailand closed lower 2.23 or 0.51% to 433.47 and JSE Index in Indonesia decreased 66.91 or 5.04% to 1,259.71. The Sensex index in India decreased 456.87 or 5.25% closed to 8,238.64.

Europe Markets Review

In London FTSE 100 Index traded lower 86.71 or 2.07% to 4,095.31, in Paris CAC 40 Index decreased 28.37 or 0.88% to 3,205.59 and in Frankfurt DAX index traded lower 45.02 or 0.97% to 4,575.78. In Zurich trading SMI decreased 5.24 or 0.09% to 5,697.62.