News / Economy

    Asian Stock Markets Recover Some from Heavy Early Losses

    Asian equity markets plummeted again at the start of trading Tuesday, amplifying fears of an imminent repeat of the 2008 global financial crisis. Despite early declines that were seen as reactions to Monday’s Wall Street sell off, Asian stocks managed to recover some of their huge losses by the time the exchanges closed.

    Analysts are saying the Asian sell-off defies market fundamentals. But their assessment has done little to stem what is described as panic selling, especially among the region’s individual investors.

    South Korea’s key stock index plunged as much as 10 percent. The Korea Stock Exchange briefly suspended programmed trading to halt the free fall. At the close, the benchmark KOSPI was off more than 3.6 percent. Banking stocks were especially hard hit.

    Trading was totally halted for a time on the small caps Kosdaq exchange when the index dropped below ten percent.

    Lee Jong-woo, head of research at Solomon Investment and Securities, says foreign investors are selling their holdings in South Korea, while domestic pensions funds, insurance companies and official foundations, at the encouragement of the government, are the major players purchasing stocks.

    Lee cautions individual investors from selling into the market panic, contending stock prices here are already very low and it is best to hold on because shares values will rise again in the fourth quarter of the year.

    Media reports quote officials of the Korea Exchange saying a ban on all short-selling is under consideration if the situation further deteriorates.

    A steep plunge was also seen in Hong Kong where the Hang Seng index finished the day five-and-two-thirds of a percent lower.

    Japan’s benchmark index, the Nikkei, closed off one-and-two-thirds a percent after steep losses earlier in the day.

    This is its lowest finish since mid-March, in the days just after the disastrous earthquake and tsunami which also triggered a meltdown of some reactors at the Fukushima-1 nuclear power plant.

    Amid the dramatic selling in Tokyo, the Finance Minister, Yoshihiko Noda, emerged to deny media reports he would be resigning later in the day. There is speculation Noda plans to run in an upcoming Democratic Party election to succeed Prime Minister Naoto Kan.

    Noda told reporters now is not the time for him to make any political moves.

    The finance minister says he is not quitting today as it is a crucial moment for the markets and he needs to do his job. He says he is watching the equity and currency markets with a sense of alarm. Noda adds economic steps are also needed to stem the rise of the Japanese currency.

    When the U.S. dollar saw a sharp but brief spike against the yen Tuesday, there was speculation among currency traders that Japanese authorities had again intervened and perhaps even coordinated buying among the Group of Seven nations. Nothing has been confirmed and the dollar quickly erased the momentary gains, continuing its decline against the yen and other currencies.

    Meanwhile, gold reached fresh record highs in Asia.

    The director of the retail Jongro Gold Exchange in downtown Seoul, Yoon Jung-hoon, says demand far exceeds the store’s inventory.

    Yoon says he has never seen a day like this. The phones were ringing off the hook before noon with so many callers wanting to immediately purchase gold. But he says he cannot keep gold on hand to meet the demand.

    Oil contracts also continued to sink in Asian trading, with various types of crude falling between four and seven percent.

    Analysts say oil prices have been dropping since Friday’s unprecedented downgrade of U.S. long-term sovereign debt. They say higher inflation in China (the world’s largest energy consumer) and stock market sell-offs are also putting pressure on oil prices.

    You May Like

    Russia Sees Brexit Impact Widespread but Temporary

    Officials, citizens react to Britain’s vote to exit European Union with mix of pleasure, understanding and concern

    Obama Encourages Entrepreneurs to Seek Global Interconnection

    President tells entrepreneurs at global summit at Stanford University to find mentors, push ahead with new ideas on day after Britain voters decide to exit EU

    Video Some US Gun Owners Support Gun Control

    Defying the stereotype, Dave Makings says he'd give up his assault rifle for a comprehensive program to reduce gun violence

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Brexit Vote Plunges Global Markets Into Unchartered Territoryi
    X
    June 24, 2016 9:38 PM
    British voters plunged global markets into unknown territory after they voted Thursday to leave the European Union. The results of the Brexit vote, the term coined to describe the referendum, caught many off guard. Analysts say the resulting volatility could last for weeks, perhaps longer. Mil Arcega reports.
    Video

    Video Brexit Vote Plunges Global Markets Into Unchartered Territory

    British voters plunged global markets into unknown territory after they voted Thursday to leave the European Union. The results of the Brexit vote, the term coined to describe the referendum, caught many off guard. Analysts say the resulting volatility could last for weeks, perhaps longer. Mil Arcega reports.
    Video

    Video Orlando Shooting Changes Debate on Gun Control

    It’s been nearly two weeks since the largest mass shooting ever in the United States. Despite public calls for tighter gun control laws, Congress is at an impasse. Democratic lawmakers resorted to a 1960s civil rights tactic to portray their frustration. VOA’s Carolyn Presutti explains how the Orlando, Florida shooting is changing the debate.
    Video

    Video Tunisian Fishing Town Searches for Jobs, Local Development Solutions

    As the European Union tries to come to grips with its migrant crisis, some newcomers are leaving voluntarily. But those returning to their home countries face an uncertain future.  Five years after Tunisia's revolution, the tiny North African country is struggling with unrest, soaring unemployment and plummeting growth. From the southern Tunisian fishing town of Zarzis, Lisa Bryant takes a look for VOA at a search for local solutions.
    Video

    Video 'American Troops' in Russia Despite Tensions

    Historic battle re-enactment is a niche hobby with a fair number of adherents in Russia where past military victories are played-up by the Kremlin as a show of national strength. But, one group of World War II re-enactors in Moscow has the rare distinction of choosing to play western ally troops. VOA's Daniel Schearf explains.
    Video

    Video Experts: Very Few Killed in US Gun Violence Are Victims of Mass Shootings

    The deadly shooting at a Florida nightclub has reignited the debate in the U.S. over gun control. Although Congress doesn't provide government health agencies funds to study gun violence, public health experts say private research has helped them learn some things about the issue. VOA's Carol Pearson reports.
    Video

    Video Trump Unleashes Broadside Against Clinton to Try to Ease GOP Doubts

    Recent public opinion polls show Republican Donald Trump slipping behind Democrat Hillary Clinton in the presidential election matchup for November. Trump trails her both in fundraising and campaign organization, but he's intensifying his attacks on the former secretary of state. VOA National Correspondent Jim Malone reports.
    Video

    Video Muslim American Mayor Calls for Tolerance

    Syrian-born Mohamed Khairullah describes himself as "an American mayor who happens to be Muslim." As the three-term mayor of Prospect Park, New Jersey, he believes his town of 6,000 is an example of how ethnicity and religious beliefs should not determine a community's leadership. Ramon Taylor has this report from Prospect Park.
    Video

    Video Internal Rifts Over Syria Policy Could Be Headache for Next US President

    With the Obama administration showing little outward enthusiasm for adopting a more robust Syria policy, there is a strong likelihood that the internal discontent expressed by State Department employees will roll over to the next administration. VOA State Department correspondent Pam Dockins reports.
    Video

    Video Senegal to Park Colorful ‘Cars Rapide’ Permanently

    Brightly painted cars rapide are a hallmark of Dakar, offering residents a cheap way to get around the capital city since 1976. But the privately owned minibuses are scheduled to be parked for good in late 2018, as Ricci Shryock reports for VOA.
    Video

    Video Florida Gets $1 Million in Emergency Government Funding for Orlando

    The U.S. government has granted $1 million in emergency funding to the state of Florida to cover the costs linked to the June 12 massacre in Orlando. U.S. Attorney General Loretta Lynch announced the grant Tuesday in Orlando, where she met with survivors of the shooting attack that killed 49 people. Zlatica Hoke reports.
    Video

    Video How to Print Impossible Shapes with Metal

    3-D printing with metals is rapidly becoming more advanced. As printers become more affordable, the industry is partnering with universities to refine processes for manufacturing previously impossible things. A new 3-D printing lab aims to bring the new technology closer to everyday use. VOA's George Putic reports.
    Video

    Video Big Somali Community in Minnesota Observes Muslim Religious Feast

    Ramadan is widely observed in the north central US state of Minnesota, which a large Muslim community calls home. VOA Somali service reporter Mohmud Masadde files this report from Minneapolis, the state's biggest city.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.9036
    JPY
    USD
    102.32
    GBP
    USD
    0.7297
    CAD
    USD
    1.3005
    INR
    USD
    68.004

    Rates may not be current.