8jun- AP-Asian Markets Follow Wall Street's Slide
Friday June 8, 5:37 am ET
By Thomas Hogue, AP Business Writer
Asia's Major Markets Tumble After Shares on Wall Street Fell Sharply for 3rd Straight Session
BANGKOK, Thailand (AP) -- Asian markets tumbled Friday after shares on Wall Street fell sharply for a third straight session amid growing speculation a U.S. interest rate cut was unlikely.
The declines in Asia also came on the heels of recent rallies in many regional markets, some to record highs.
"This has to be seen in the perspective that we've had a very nice price rally," said David Cohen, Director of Asian Economic Forecasting with Action Economics in Singapore. "They were due for a little bit of a fall."
In Tokyo, the Nikkei 225 average fell 274.29 points, or 1.52 percent, to 17,779.09, while Hong Kong's Hang Seng Index was down 1.4 percent at 20,509.
Singapore shares were down 1.2 percent and Australian stocks lost 1.3 percent. Other markets, including Thailand, Taiwan and Malaysia fell less than 1 percent, and Philippines shares ended little changed.
Earlier this month, benchmark indexes in Australia, Indonesia, the Philippines, Singapore and South Korea all hit records.
Asian markets remain sensitive to moves on Wall Street and indicators about the U.S. economy because it one of the biggest markets for the region's exporters.
U.S. stocks fell sharply as investors' hopes for an interest rate cut later this year began to fade. The cut began to look unlikely because of rising bond yields. Many believe the higher yields will make the Federal Reserve less interested in reducing short-term interest rates.
The Dow fell 198.94, or 1.48 percent, to 13,266.73, bringing its three-day loss to about 410 points. The Nasdaq composite index also sank, losing 45.80, or 1.77 percent, to 2,541.38.
"People have been a little naively hoping for a rate cut," Cohen said. "When they began to suspect that wasn't in the cards, they pulled back."
In Tokyo, weaker-than-expected Japanese machinery data hurt investor confidence. Core machinery orders climbed 2.2 percent in April from March, but that was less than economists' forecast for a 4.4 percent rise.
Decliners included Nippon Steel Corp., which lost 1.59 percent to 865 yen ($7.15), and machine tool maker Fanuc Ltd., which shed 1.64 percent to 11,420 yen ($94.38).
"We can expect that the Nikkei will again trade above the 18,000-mark next week, but there still are lingering fears that the Fed may raise interest rates depending on indicators coming out next week," said Hiroyuki Fukunaga, chief strategist at Rakuten Securities.
http://biz.yahoo.com/ap/070608/world_markets.html?.v=9
Friday June 8, 5:37 am ET
By Thomas Hogue, AP Business Writer
Asia's Major Markets Tumble After Shares on Wall Street Fell Sharply for 3rd Straight Session
BANGKOK, Thailand (AP) -- Asian markets tumbled Friday after shares on Wall Street fell sharply for a third straight session amid growing speculation a U.S. interest rate cut was unlikely.
The declines in Asia also came on the heels of recent rallies in many regional markets, some to record highs.
"This has to be seen in the perspective that we've had a very nice price rally," said David Cohen, Director of Asian Economic Forecasting with Action Economics in Singapore. "They were due for a little bit of a fall."
In Tokyo, the Nikkei 225 average fell 274.29 points, or 1.52 percent, to 17,779.09, while Hong Kong's Hang Seng Index was down 1.4 percent at 20,509.
Singapore shares were down 1.2 percent and Australian stocks lost 1.3 percent. Other markets, including Thailand, Taiwan and Malaysia fell less than 1 percent, and Philippines shares ended little changed.
Earlier this month, benchmark indexes in Australia, Indonesia, the Philippines, Singapore and South Korea all hit records.
Asian markets remain sensitive to moves on Wall Street and indicators about the U.S. economy because it one of the biggest markets for the region's exporters.
U.S. stocks fell sharply as investors' hopes for an interest rate cut later this year began to fade. The cut began to look unlikely because of rising bond yields. Many believe the higher yields will make the Federal Reserve less interested in reducing short-term interest rates.
The Dow fell 198.94, or 1.48 percent, to 13,266.73, bringing its three-day loss to about 410 points. The Nasdaq composite index also sank, losing 45.80, or 1.77 percent, to 2,541.38.
"People have been a little naively hoping for a rate cut," Cohen said. "When they began to suspect that wasn't in the cards, they pulled back."
In Tokyo, weaker-than-expected Japanese machinery data hurt investor confidence. Core machinery orders climbed 2.2 percent in April from March, but that was less than economists' forecast for a 4.4 percent rise.
Decliners included Nippon Steel Corp., which lost 1.59 percent to 865 yen ($7.15), and machine tool maker Fanuc Ltd., which shed 1.64 percent to 11,420 yen ($94.38).
"We can expect that the Nikkei will again trade above the 18,000-mark next week, but there still are lingering fears that the Fed may raise interest rates depending on indicators coming out next week," said Hiroyuki Fukunaga, chief strategist at Rakuten Securities.
http://biz.yahoo.com/ap/070608/world_markets.html?.v=9
