Stock markets in Asia are witnessing yet another session of havoc as marketmen continued to trim down positions from all riskier asset classes like equities and commodities as there emerged absolutely no developments that could halt the unrelenting selling pressure. Sentiments in the region got influenced by overnight Wall Street which suffered a sharp plunge, extending losses for the second day in a row with the major indices taking their hardest single-day hit in five weeks. With a deteriorating situation in the US and Europe and fresh worries over a global economic recession after disappointing Chinese and European factory output data investors were left with the only option to take cash off the table and sit on the sidelines until something really revitalizing happens.
The sentiments remained extremely bearish in South Korea which languished at the bottom with highest losses in the region as it got obliterated by over four and half a percent after foreign funds squared off huge positions on worries that global economic stagnation intensified. Benchmark in Hong Kong looked set to post its biggest weekly decline in almost three years, as a drop in US consumer confidence indicated that the global economy is heading for another recession.
Shanghai Composite plunged 24.75 points or 1.01% to 2,418.30, Hang Seng plummeted 377.67 points or 2.11% to 17,534.28, Jakarta Composite sank 28.39 points or 0.84% to 3,340.76, KLSE Composite shaved off 16.40 points or 1.18% to 1,371.41, Straits Times slumped 48.68 points or 1.79% to 2,671.85, Seoul Composite got butchered 85.22 points or 4.73% to 1,715.33 and Taiwan Weighted got pulverized 241.98 points or 3.31% to 7,063.52.
Japanese equity markets were closed on Friday in observance of a public holiday.
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