16. Asian markets tumble
Asian stock markets plunged today after more bad news on the US economy, a vital export market, triggered a broad sell-off on Wall Street overnight.
Disappointing reports on US retail sales and jobless claims undercut hopes for a late-year recovery in the US and depressed investor sentiment across Asia.
In Japan, the benchmark Nikkei 225 index was down 2.9 per cent at 12,196.47 in early afternoon trading.
Hong Kong's Hang Seng index tumbled 3.1 per cent to 19,752.65, dropping below the key psychological level of 20,000 and hitting its lowest point in more than a year.
Markets in mainland China, India and Australia were also down more than 2 per cent.
Inflation continues to be a major concern in Asia, with the Philippines reporting today that the August consumer price index rose 12.5 per cent from a year ago, the highest in nearly 17 years. The local stock index fell 1 per cent to 2,724.72.
In New York yesterday, the Dow Jones Industrial Average fell 344.65 points, or 2.99 per cent, to 11,188.23. It was the worst drop for the blue-chip index since June 26, when it sank 3.03 per cent.
Meanwhile in Malaysia the government is closely monitoring the movement of the ringgit following the marked depreciation in Asian currencies amid a firmer dollar and concerns over a global economic downturn.
"We are observing very closely what is happening," Prime Minister Datuk Seri Abdullah Ahmad Badawi said when responding to reports of Asian currencies having opened significantly lower in regional markets today.
The Indonesian rupiah, South Korean won, Malaysian ringgit and the Philippines peso had come under pressure as the dollar strengthened while concerns lingered over inflationary presssures.
The reports had also said that there could have been official intervention to support their currencies.
Asked whether this was the time for the government to intervene with most Asian currencies having fallen significantly, Abdullah, who is also Finance Minister, said: "Not yet."
The ringgit opened 0.8 per cent lower at 3.45 against the dollar from 3.42 at yesterday's closing.
News reports said that the ringgit hit a year low of 3.46 per dollar in early trading today - AP/ BERNAMA.
