Associated Press - 09/11/98
TOKYO (AP) -- Ignoring the good news about Russia, Asia's top three stock markets fell sharply today, following the lead of U.S., Latin American and European bourses instead.
Growing concerns about the future of President Clinton also were blamed for the latest slump in the stock markets, and another weakening of the dollar.
''Unfortunately, what's good or bad for the U.S. is good or bad for Asia'' and the rest of the world, said Eugene Chung, Asia strategist at Warburg Dillon Read (HK) Ltd., in Hong Kong.
Japan's 225-issue Nikkei Stock Average plummeted 749.05 points, or 5.12 percent, to close at 13,916.98. It was the largest one-day point fall this year. The finish also was just above the Nikkei's 12-year closing low of 13,915.63 set on Aug. 28.
In another sign of turbulence, the dollar fell once again, buying 130.78 yen in late afternoon trading, down 4.92 yen from late Thursday in Tokyo. That figure also was below its late New York level of 134.23 yen overnight.
Hong Kong's blue-chip Hang Seng Index fell 271.48 points, or 3.5 percent, to close at 7,578.48 today. Traders said the stock market was taking a breather from recent gains. However, they also acknowledged that the sharp falls in the New York and Tokyo bourses were hurting the sentiment in Hong Kong.
In Singapore, where the market has been battered by capital controls recently imposed by neighboring Malaysia, shares opened lower and by the end of the day the Straits Times Index was down 11.81 points, or 1.3 percent, to 853.19 points.
On Thursday, Boris Yeltsin named a compromise candidate for prime minister, defusing a dangerous power struggle that had stalled efforts to tackle Russia's economic crisis.
The ruble and the Russian stock market quickly rebounded. But Asia's markets were far more influenced today by the wave of anxiety that had swept through Washington and world markets the day before.
On Thursday, news reports indicated that independent Counsel Kenneth Starr's referral to Congress accuses Clinton of perjury and obstruction of justice, and contains evidence that prosecutors contend
shows impeachable offenses.
In New York, the Dow Jones industrial average responded by finishing the day 249.48 points, or 3.2 percent, lower at 7,615.54. That was more than 1,700 points, or 18.4 percent, below the July 17 record
that the Dow had set at 9,337.97.
Combined with Wednesday's 155-point loss, the drop more than wiped out the record 380 points that the Dow gained on Tuesday amid hopes the U.S. Federal Reserve may intervene in the battle against global
economic distress by lowering U.S. interest rates.
The day's world stock selloff was highlighted by two trading halts in Brazil, where the main stock index plunged 15 percent.
And in Europe, Frankfurt's DAX index fell 5.8 percent, London's FT-SE 100 dropped 3.3 percent, and the CAC-40 in Paris was down 4.6 percent. |
