- Nov 22, 2003
- Reaction score
Asian markets plunge across board
By YURI KAGEYAMA, AP Business Writer 27 minutes ago
Markets in Asia and Europe fell again Monday, extending their slide into a second week as investors worried about a possible global slowdown dumped stocks that had surged in recent weeks.
Also sparking jitters was the yen's jump to a three-month high against the dollar as traders sold off higher-yielding investments funded by borrowing money at Japan's ultra-low interest rates. A decline in this so-called yen-carry trade could hurt global liquidity.
In Tokyo, the Nikkei 225 index fell for a fifth day, tumbling 575.68 points, or 3.34 percent, to 16,642.25 points, dragged down by major exporters such as Canon Inc., Sony Corp (NYSE:SNE - news). and Toyota Motor Corp., whose earnings are eroded by a stronger yen. Since reaching a nearly seven-year high last Monday, the Nikkei index has slid 8.64 percent.
Markets in Hong Kong, Australia, the Philippines, India and South Korea all fell sharply Monday, continuing their declines from last week, when a 9 percent plunge in Chinese stocks on Tuesday triggered a sell-off on Wall Street and other global markets.
European markets also opened lower Monday, with Britain's benchmark FTSE 100 down 1.5 percent in early trading, France's CAC 40 sliding 1.8 percent and Germany's DAX sinking 2.1 percent.
Australian markets which had hit records last month fell for a fifth day, sinking 2.3 percent. South Korea's benchmark index dropped 2.7 percent, Philippine stocks plunged 4.5 percent, and Indian stocks were down nearly 4 percent.