Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (14227)	8/28/1998 7:21:00 AM
From: kech	Read Replies (2) \| Respond to of 152472

C.L., ne Ramsey, who is sleeping well, while I am not. (Notice time is now 6:09 AM). Remember that the stock market predicted 10 of the last 3 recessions! A glimmer of hope this morning from ASIA. ASIAN stock markets didn't continue the wipe-out. FOCUS-Global markets rocked, Asia avoids rout Reuters, Friday, August 28, 1998 at 04:07 (Updates with closing stock, currency levels, new quotes) By Christina Toh-Pantin SINGAPORE, Aug 28 (Reuters) - Globalwide worries over weakening economies gripped financial markets on Friday, though Asia's stock and currency markets avoided the worst of the rout that cascaded through the Americas and Europe. Selling rippling over from a 4.2 percent dive on Wall Street and deepening Russian financial woes sent key markets in Asia spiralling lower early on Friday. Tokyo share prices had shed nearly 3.5 percent by the close to their lowest levels in more than 12 years. With the trading day just about wound down, many bourses and currencies in Asia had pulled back from their worst levels. But all eyes are now turning to European and U.S. markets for any signs of a resumed selloff. Germany's benchmark Xetra Dax slipped more than three percent in the opening 10 minutes of electronic trade on Friday. The FTSE 100 is expected to drop three percent on Friday in tandem with global market declines. It shed three percent on Thursday. As Russia's share market slid to a record low and the government suspended trading in the rouble on Thursday, emerging markets in Latin American posted losses of up to 11 percent. "The herd instinct is working," said Hugh Young, managing director at Aberdeen Asset Management. "In a sense, I guess the Asian markets have been remarkably firm partially due to the government intervention in Hong Kong," he added. At 0704 GMT, the Hong Kong index was down 1.1 percent, a smaller loss than most other Asian markets. Turnover jumped to a record HK$70 billion mid-afternoon as the government intervened ahead of a futures expiration. Japan shares fared less well, with the Nikkei 225 index breaching 14,000 and ending 498.16 points or 3.46 percent down to 13,915.63. The Philippines was also a big loser and the 30-stock composite index sank 5.7 percent to end at 1,194.71. Currencies were more resilient, although the venerable U.S. dollar found its safe haven status dented by Wall Street's slide on Thursday. It dipped to as low as 140.20 yen in Tokyo trading Friday, and bounced above 142 yen by the end of a volatile day. The Australian dollar found support in the midst of the gloom, enjoying its first gains in a week of relentless pressure that took it to a historic low of $0.5530. At 0724 GMT, the Aussie dollar was quoted at $0.5585/95. Currency declines found a fresh victim in the Canadian dollar, which on Thursday saw its weakest levels in more than a century and made Canada the first Group of Seven state to show signs of succumbing to the contagion. More declines in equity prices are in store, but debt instruments and well-positioned companies should benefit from the flight-to-quality, analysts said. "Inevitably, we'll see some fund withdrawals (from the Asian markets)," said Ian Lui, managing director of Indocam Singapore. "...For those who remain with us and for funds committed to Asia, our strategy is a fundamental or stock-specific approach. We take very, very strong companies that we think can survive the whole crisis." But the selldown does not suggest a worldwide meltdown of markets, said Andy Tan, an economist at MMS International in Singapore. "I think there are definitely linkages between all the global financial instruments which makes them vulnerable to short-term overshooting," he said. "I think it's darkest before the dawn," he added. Funds fleeing Asian and U.S. stock investments may also make prospects for fixed income and European share markets brighter. A series of Reuters polls of fund managers and strategists in Europe, Japan, Britain and the U.S. released on Thursday showed a general flight to quality with favoured harbours being U.S. and European bonds and European equities. "Investors' preference for U.S. bonds is going to remain strong for the time being, as stock market volatility, particularly in emerging markets, is causing a flight to quality," said a strategist at Okasan Economic Research in Japan.: