Most Asian markets fall on Bhutto death
Updated: 2007-12-28 20:49
Japanese investors remain worried about the American economy - a vital export market - amid the subprime mortgage crisis. A report from Goldman Sachs that said write-downs at US banks, including Citigroup Inc., Merrill Lynch & Co. and JPMorgan Chase & Co., may deepen, helped to squelch sentiment.
Also, a less-than-expected rise in US durable goods orders exacerbated concerns about the US economy. In New York Thursday, the Dow Jones industrial average dropped 1.4 percent to 13,359.6.
The Nikkei is likely to stagnate during the first half of 2008 but has a chance of recovering once the US credit crunch settles down later in the year, said Kenichiro Yoshida, senior economist at Mizuho Research Institute in Tokyo.
"A pessimistic view is prevalent about the Nikkei," said Yoshida. "Looking ahead to next year, we must keep our eyes on Wall Street."
Trading in Tokyo is scheduled to reopen on Jan. 4 after the New Year's holidays.
In Hong Kong, jitters over Bhutto's assassination and continued concerns about the US economy dragged down the benchmark Hang Seng Index by 472.33 points, or 1.7 percent, to 27,370.6 points.
"I would suggest investors to avoid buying any stocks now amid the uncertain market outlook," said Castor Pang, a strategist at Sun Hung Kai Financial.
In Hong Kong, heavyweight China Mobile dropped 2.6 percent on concerns it may soon face a more competitive environment following a potential restructuring of the Chinese mainland's telecom sector. China Netcom fell 4 percent.
Hong Kong winds up the year's trading on Monday and will be closed Tuesday for New Year's Day, as will all other Asian markets.
In Tokyo currencies, the US dollar was trading at 112.78 in late afternoon trading, down sharply from 113.69 yen late Thursday in New York.
Indonesian shares end year's final trading session 0.2 percent lower at 2,745.826 in moderate volume. The benchmark index gained 52 percent for 2007.
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