Nikkei falls to 26-yr low

Nikkei falls to 26-yr low
Home > Breaking News > Money > Story
March 3, 2009

TOKYO
Japanese stocks fell to a fresh 26-year low on Tuesday after the Dow Jones industrial average closed below 7,000 for the first time in more than 11 years on growing fears over the health of the US financial sector.

The benchmark Nikkei 225 stock average tumbled 104.82 points, or 1.44 per cent, to 7,175.33 in the morning trade, extending further losses after a 3.8 per cent drop Monday. That marked a fresh 26-year low for the Nikkei, which closed at 7,114.64 on Oct 7, 1982.

The broader Topix index also fell 1.67 per cent to 722.32.

'Investors are becoming nervous about the state of the U.S.

financial sector. They were worried about deteriorating assets in the U.S. financial sector,' said Kazuhiro Takahashi, equity strategist at Daiwa Securities SMBC Co Ltd.

Investors were jittery after insurer American International Group Inc. reported a staggering US$61.7 billion in quarterly losses, sparking fresh fears about the health of the U.S. financial system.

The worries pressured the Dow, which fell 299.64, or 4.24 percent, to 6,763.29. The Dow last closed below 7,000 on May 1, 1997.

The US credit crisis and recession have slashed more than half the average's value since it hit a record high over 14,000 in October 2007. And now many investors fear the market could take a long time to regain the lost 7,000.

Apart from AIG's massive losses, investors were spooked as HSBC PLC, Europe's largest bank by market value, said on Monday it needs to raise US$17.7 billion. The company reported a 70 per cent drop in 2008 earnings and said it would cut 6,100 jobs.

HONG KONG
Hong Kong share prices opened 2.8 per cent lower on Tuesday, tracking Wall Street's tumble overnight and following worse-than-expected annual results from banking giant HSBC, dealers said.

The benchmark Hang Seng Index opened down 350.39 points at 11,967.07.

HSBC opened 19.4 per cent down at HK$45.90 after trading in its shares was suspended on Monday for the announcement of earnings results.

The bank reported a 70 per cent plunge in last year's annual net profit and said it hoped to raise US$17.8 billion in a record British rights issue to weather the financial crisis.

SHANGHAI
Chinese share prices were down 1.93 per cent on Tuesday morning as sentiment remained fragile after the US stock market tumbled to a new 12-year low overnight, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 40.10 points at 2,053.35.

The Shanghai A-share index shed 42.41 points, or 1.93 per cent, to 2,155.26, while the Shenzhen A-share index fell 9.21 points, or 1.30 per cent, to 698.95.

KUALA LUMPUR
At 10.30am on Tuesday, there were 52 gainers, 215 losers and 103 counters traded unchanged on the Bursa Malaysia.

The KLCI was at 867.84 down 8.72 points, the FBM2BRD was at 3,938.54 down 12.33 points, and the FBMEmas was at 5,674.01 down 54.89 points.

Turnover was at 116.687 million shares valued at RM140.601 million.
-- AP, AFP, BERNAMA