Asian equities are caught amid the pandemonium of ruthless risk aversion after new warnings of world recession and as fears grew over the future of European banks with heavy exposure to sovereign debt. A flurry of tumultuous economic reports from the US showing a rise in inflation in July, manufacturing sharply weakened in the Mid-Atlantic States, housing sales fell and jobless benefit claims rose, exacerbating investors’ worries amid the crisis of confidence and pointed to another day of rout in markets across the region. Concerns over the financial health of European banks which are facing short-term funding stress too pressured banking and financial stocks around the Asian region.
Shares in Tokyo nosedived over two percent points as they traded on discouraging note, hit by fears of double dip recession in the US and new worries about the health of European banks. The South Korean benchmark got pulverized by over four percent due to the plunge in global shares overnight as foreign institutional and retail investors are all selling their shares in the market with most industries posting a fall in their stocks.
Shanghai Composite plunged 32.69 points or 1.28% to 2,526.78, Hang Seng plummeted 490.87 points or 2.45% to 19,525.40, Jakarta Composite got butchered 102.82 points or 2.56% to 3,918.18, KLSE Composite sank 17.37 points or 1.16% to 1,485.93, Nikkei 225 nosedived 192.09 points or 2.15% to 8,751.67, Straits Times shaved off 69.83 points or 2.47% to 2,755.13, Seoul Composite got pulverized 81.85 points or 4.40% to 1,778.73 and Taiwan Weighted slumped 205.77 points or 2.70% to 7,409.20.
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