FOCUS-Wall St, China fears knock Asia stock markets
Sunday January 24, 10:38 pm Eastern Time
SINGAPORE, Jan 25 (Reuters) - Shares in Hong Kong slid over four percent in early trade
on Monday, tripping up other Asian stock markets already worried by losses on Wall Street
and unnerved by fears that China might devalue its yuan.
The only major exception was Tokyo, where growing optimism over Japan's debt-laden banking sector steadied shares. The
Nikkei 225 average closed the morning session just 0.02 percent down at 14,151.26.
Elsewhere, nervous markets fell sharply -- around six percent in Manila, three percent in Singapore, Taipei and Jakarta, and
two percent in Seoul.
Hong Kong's benchmark index was down 4.05 percent at 9,344 points at 0237 GMT, reacting to the Dow Jones industrial
average's close at 9,120.67 on Friday, down 1.5 percent after IBM announced disappointing results.
''My concern is the China debt and the yuan,'' said Gary Wong, associate director at Vickers Ballas. ''IBM's results will also
shake the market a bit.''
Shares in the Philippines plunged 5.74 percent to 1,943.93 in mid-morning trade as fears spread that China might devalue the
yuan.
''There is a lot of nervousness in the region. (The drop in stock markets) started in South Korea and is spreading to other parts
of the region,'' said Jose Maria Ricardo Garcia, executive vice president of Diversified Securities.
South Korean stocks were down 2.01 percent at 539.51 points in early trade but recovered to 547.15 by 0300 GMT.
Brokers said investors were also concerned that Beijing would devalue the yuan following Brazil's decision to float its currency
earlier this month and after a string of bankruptcies among Chinese state-run investment organisations.
The official China Daily Business Weekly suggested on Sunday that a devaluation or floating of the yuan may not be a bad thing.
In Australia, shares were 0.5 percent down at 2,833.2 at midday in a calm reaction to Wall Street's losses ahead of Tuesday's
Australia Day holiday.
''There's not much to report, we're basically down on the back of Wall Street's (fall) Friday night,'' said dealer Brett
O'Donovan of Brisbane's Henderson Charlton Jones.
Singapore shares slipped 4.17 percent to 1,417.09 in mid-morning trade.
In Taiwan, the benchmark index was down 3.28 percent at 6,024.61 at 0300 GMT after New York's losses further hurt weak
sentiment, and brokers said the index may soon test support at around 6,000.
Malaysian shares were down 1.12 percent at 611.64 at 0300 GMT. Thai shares fell 2.19 percent to 368.25 in early trading.
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