Asian markets fall after slide on Wall Street sparks recession fears(Live mint.com 6th Feb 2008)European stocks shrugged off sharp drops on Asian markets on Wednesday after a steep drop on Wall Street overnight fanned investors’ fears that the US economy was sliding into a recession that would sap demand for Asian exports.
US futures also rose ahead of the start of trading in New York. In Europe, stocks were up modestly. In the UK, the benchmark FTSE 100 index rose 0.1% to 5,873.5, while Germany’s DAX climbed 0.3% to 6,782.91. France’s CAC gained 0.5% to 4,799.2, helped by a strong earnings report by France Telecom SA.
In Asia, investors dumped shares after figures released on Tuesday showed that the US services sector shrank last month for the first time since March 2003. That wiped out some renewed confidence about the American economy after the US Federal Reserve’s two big rate cuts late last month.
“It’s unbridled pessimism,” said Francis Lun, general manager at Fulbright Securities Ltd in Hong Kong, of the Asian markets.
In Hong Kong, the benchmark Hang Seng index plunged 1,339.24 points, or 5.4%, to close the half-day session at 23,469.46. Japan’s Nikkei 225 tumbled 4.7% to 13,099.24. Global financial markets have been turbulent since the start of the year on worries about a US recession and a worldwide slowdown, and massive losses racked up by banks that made bad bets on securities backed by risky mortgages. More
US futures also rose ahead of the start of trading in New York. In Europe, stocks were up modestly. In the UK, the benchmark FTSE 100 index rose 0.1% to 5,873.5, while Germany’s DAX climbed 0.3% to 6,782.91. France’s CAC gained 0.5% to 4,799.2, helped by a strong earnings report by France Telecom SA.
In Asia, investors dumped shares after figures released on Tuesday showed that the US services sector shrank last month for the first time since March 2003. That wiped out some renewed confidence about the American economy after the US Federal Reserve’s two big rate cuts late last month.
“It’s unbridled pessimism,” said Francis Lun, general manager at Fulbright Securities Ltd in Hong Kong, of the Asian markets.
In Hong Kong, the benchmark Hang Seng index plunged 1,339.24 points, or 5.4%, to close the half-day session at 23,469.46. Japan’s Nikkei 225 tumbled 4.7% to 13,099.24. Global financial markets have been turbulent since the start of the year on worries about a US recession and a worldwide slowdown, and massive losses racked up by banks that made bad bets on securities backed by risky mortgages. More
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