Post by unlawflcombatnt on Jan 21, 2008 21:51:20 GMT -6
from Yahoo News:
Asia markets tumble on US worries
By YURI KAGEYAMA, AP Business Writer
"Global stock markets extended their shakeout into a second day Tuesday, plunging amid worries that a possible U.S. recession will cause a worldwide economic slowdown. The dramatic declines were expected to spread to Wall Street, where stock index futures were already down sharply hours before the trading day began.
Japan's Nikkei 225 index...skidded -4.4% in morning trading to 12,738.31 points, after dropping -3.9% Monday.
Hong Kong's Hang Seng index was down -5.2% after plunging -5.5% the day before.
"Unless we get some positive 'shock effects,' such as drastic measures from the U.S. government,
there is almost no hope for a recovery in stocks," said Koji Takeuchi, senior economist at Mizuho Research Institute in Tokyo.
U.S. markets were closed Monday....Wall Street future prices were down sharply, portending a plunge when trading begins at 9:30 a.m. Eastern time.
Dow Jones industrial average futures were down -436 points, or -3.6%, at 11,670, while
Standard & Poor's 500 futures were down -57.1 points, or -4.3%, at 1,268.
Markets have been plunging amid pessimism about the ability of the U.S. government to prevent a recession....President Bush has proposed an economic stimulus package that includes $145 billion in tax cuts, but investors around the world are doubtful that the measures will lift the economy quickly.
The U.S. economy has been battered by a slump in the housing market and a credit crisis that has led to billions of dollars of losses among major U.S. banks.
In Europe Monday, investors also dumped stocks, sending
Britain's...FTSE-100 down -5.5% and
France's CAC-40 Index sliding -6.8%.
Germany's...DAX 30 plunged -7.2%....
Takeuchi said investors feel that the selloff is spreading worldwide, setting off fears of a global downturn. Risks of economic contraction have been growing in Japan as both exports and consumer spending are weakening....
Kirby Daley, strategist at Newedge Group, said the Nikkei could shed another 10% to 15% to the 11,000 level in the next few months.
Japanese companies depend on exports and capital investments to keep up profits, and both are endangered if there is a U.S. slowdown....
"The argument that valuations are cheap for Japanese stocks is flawed," Daley said. "The basis for those earnings valuations doesn't consider ongoing problems in the U.S. economy, which are likely to get worse."...."
Asia markets tumble on US worries
By YURI KAGEYAMA, AP Business Writer
"Global stock markets extended their shakeout into a second day Tuesday, plunging amid worries that a possible U.S. recession will cause a worldwide economic slowdown. The dramatic declines were expected to spread to Wall Street, where stock index futures were already down sharply hours before the trading day began.
Japan's Nikkei 225 index...skidded -4.4% in morning trading to 12,738.31 points, after dropping -3.9% Monday.
Hong Kong's Hang Seng index was down -5.2% after plunging -5.5% the day before.
"Unless we get some positive 'shock effects,' such as drastic measures from the U.S. government,
there is almost no hope for a recovery in stocks," said Koji Takeuchi, senior economist at Mizuho Research Institute in Tokyo.
U.S. markets were closed Monday....Wall Street future prices were down sharply, portending a plunge when trading begins at 9:30 a.m. Eastern time.
Dow Jones industrial average futures were down -436 points, or -3.6%, at 11,670, while
Standard & Poor's 500 futures were down -57.1 points, or -4.3%, at 1,268.
Markets have been plunging amid pessimism about the ability of the U.S. government to prevent a recession....President Bush has proposed an economic stimulus package that includes $145 billion in tax cuts, but investors around the world are doubtful that the measures will lift the economy quickly.
The U.S. economy has been battered by a slump in the housing market and a credit crisis that has led to billions of dollars of losses among major U.S. banks.
In Europe Monday, investors also dumped stocks, sending
Britain's...FTSE-100 down -5.5% and
France's CAC-40 Index sliding -6.8%.
Germany's...DAX 30 plunged -7.2%....
Takeuchi said investors feel that the selloff is spreading worldwide, setting off fears of a global downturn. Risks of economic contraction have been growing in Japan as both exports and consumer spending are weakening....
Kirby Daley, strategist at Newedge Group, said the Nikkei could shed another 10% to 15% to the 11,000 level in the next few months.
Japanese companies depend on exports and capital investments to keep up profits, and both are endangered if there is a U.S. slowdown....
"The argument that valuations are cheap for Japanese stocks is flawed," Daley said. "The basis for those earnings valuations doesn't consider ongoing problems in the U.S. economy, which are likely to get worse."...."