U.S. Woes Weigh On Asian Markets
Global Stocks Fall As Gustav Hits
South Korea's Kospi index was Asia's hardest-hit stock market, falling 4.1 percent to its lowest level in 17 months.
(By Lee Jin-man -- Associated Press)
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Tuesday, September 2, 2008
HONG KONG, Sept. 1 -- Asian stock markets dropped sharply Monday, led by exporters such as Canon and LG Electronics, amid worries over slowing global demand and crude prices as Hurricane Gustav bore down on Gulf Coast oil operations.
In Europe, stocks fell more modestly. Britain's FTSE 100 index closed down 0.60 percent at 5602.80, Germany's DAX fell 0.01 percent to 6421.80 and France's CAC slipped 0.23 percent to 4472.13.
The U.S. stock market was closed yesterday for Labor Day.
In Asia, South Korean shares were hit hardest, with the Korea Composite Stock Price Index plummeting 4.1 percent to 1414.43 -- its lowest level in 17 months -- amid multiyear weakness in the country's currency.
Japan's Nikkei 225 index, meanwhile, lost 1.83 percent to 12,834.18 as investors cashed in recent gains and Friday's drop on Wall Street darkened the near-term outlook.
Taiwan's benchmark index plunged 3.3 percent, hurt by concerns about the country's electronics industry in the face of slowing world economic growth. Other stock measures in Shanghai, Hong Kong and Singapore also retreated.
Global investors were uneasy after the United States released figures Friday showing decreasing personal incomes and weak consumer spending -- suggesting softer demand for foreign goods in the world's largest economy.
Oil prices also topped concerns as Hurricane Gustav churned toward Louisiana, prompting companies to shut down drilling and refining operations in the Gulf Coast. Crude rose $2.79 to $118.25 a barrel before retreating dramatically in European trading to below $111 a barrel.
"There's not much positive news. We have slowing down in the U.S and higher oil prices. So investors are clearly still worried," said Alex Tang, head of research at Core Pacific-Yamaichi in Hong Kong.
Across Asia, companies that depend on the United States and other export markets took a beating, with cautious comments from computer maker Dell weighing on the technology sector.
Hon Hai Precision Industry, the giant Taiwanese electronics manufacturer that supplies Apple and other leading brands, plunged 6.9 percent after posting a decline in profit.
In South Korea, Hynix Semiconductor, the world's second-largest manufacturer of computer memory chips, slid 11.3 percent. Major handset maker LG Electronics fell 9.6 percent.
