mr funny
12-09-08, 12:11
http://www.todayonline.com/articles/275470.asp
Friday, September 12, 2008
3 years’ gains wiped out
Benchmark index and currency markets across Asia fell back
FOR stock markets across Asia, it is as if the past three years never happened.
The benchmark index covering the region’s big exchanges yesterday fell to its lowest level since November 2005, with investors worried about prospects for Asian exports. The currency markets experienced similar scenes as all 10 of the most-traded currencies in Asia outside of Japan fell back.
The MSCI Asia Pacific Index yesterday sank 2.6 per cent to 114.71 in late afternoon in Tokyo, set for its biggest loss since July 25. The week which started with a brave market rally ended dismally.
All 10 industry groups fell, led by financial stocks. In Singapore, the story was similar, with the Straits Times Index finishing 81.26 points, or 3.1 per cent, lower.
Singapore banks slumped on a worsening operating outlook and a downgrade of the financial sector by Merrill Lynch. “We have become more negative on Singapore banks as we expect slowing economic growth and a protracted downturn in the property market to impact profits next year,” the investment bank said.
Meanwhile, the European Commission lowered its full-year growth forecast for the 15-nation Euro region’s economy to 1.3 per cent, from 1.7 per cent earlier, and signalled that next year’s outlook may also be cut.
South Korea’s won and Indonesia’s rupiah led losses in Asian currencies on speculation that purchases of United States dollars will increase as overseas investors add to sales of regional stocks.
All 10 of the most-traded currencies in Asia outside of Japan fell as funds abroad sold more shares than they bought in Korea, Taiwan, the Philippines and Thailand. The won remained lower after the Bank of Korea kept interest rates unchanged at an eight-year high of 5.25 per cent. Asian currencies also declined as the US dollar rose to the highest in almost a year against the euro.
“Capital is moving back to the US,’’ said Mr Marcelo Ayes, senior vice-president for treasury at Rizal Commercial Banking Corp in Manila. “Banks, funds and companies are selling their investments in Asia and the rest of the world to fund recapitalisation of US companies.”
Malaysia’s ringgit traded close to a one-year low on speculation falling commodity prices such as palm oil will erode export receipts and curb growth in Southeast Asia’s third-largest economy.
The Singapore dollar lost 0.6 per cent to $1.4437 against the US unit.
Friday, September 12, 2008
3 years’ gains wiped out
Benchmark index and currency markets across Asia fell back
FOR stock markets across Asia, it is as if the past three years never happened.
The benchmark index covering the region’s big exchanges yesterday fell to its lowest level since November 2005, with investors worried about prospects for Asian exports. The currency markets experienced similar scenes as all 10 of the most-traded currencies in Asia outside of Japan fell back.
The MSCI Asia Pacific Index yesterday sank 2.6 per cent to 114.71 in late afternoon in Tokyo, set for its biggest loss since July 25. The week which started with a brave market rally ended dismally.
All 10 industry groups fell, led by financial stocks. In Singapore, the story was similar, with the Straits Times Index finishing 81.26 points, or 3.1 per cent, lower.
Singapore banks slumped on a worsening operating outlook and a downgrade of the financial sector by Merrill Lynch. “We have become more negative on Singapore banks as we expect slowing economic growth and a protracted downturn in the property market to impact profits next year,” the investment bank said.
Meanwhile, the European Commission lowered its full-year growth forecast for the 15-nation Euro region’s economy to 1.3 per cent, from 1.7 per cent earlier, and signalled that next year’s outlook may also be cut.
South Korea’s won and Indonesia’s rupiah led losses in Asian currencies on speculation that purchases of United States dollars will increase as overseas investors add to sales of regional stocks.
All 10 of the most-traded currencies in Asia outside of Japan fell as funds abroad sold more shares than they bought in Korea, Taiwan, the Philippines and Thailand. The won remained lower after the Bank of Korea kept interest rates unchanged at an eight-year high of 5.25 per cent. Asian currencies also declined as the US dollar rose to the highest in almost a year against the euro.
“Capital is moving back to the US,’’ said Mr Marcelo Ayes, senior vice-president for treasury at Rizal Commercial Banking Corp in Manila. “Banks, funds and companies are selling their investments in Asia and the rest of the world to fund recapitalisation of US companies.”
Malaysia’s ringgit traded close to a one-year low on speculation falling commodity prices such as palm oil will erode export receipts and curb growth in Southeast Asia’s third-largest economy.
The Singapore dollar lost 0.6 per cent to $1.4437 against the US unit.