Asian markets plunged on Thursday on renewed concern that the US recession will lower demand for commodities.
The decline was led by mining and energy companies as gold and oil prices pulled back sharply.
Hong Kong`s index Hang Seng slumped 777.58 points, or 3.56%, to trade at 21,089.36.
China`s Shanghai Composite plunged 191.50 points, or 5.09%, to trade at 3,570.11.
Taiwan`s Taiex index fell 46.59 points, or 0.57%, to trade at 8,132.76.
South Korea`s KOSPI declined 21.84 points, or 1.35%, to trade at 1,600.39.
Singapore`s Straits Times pared 46.02 points, or 1.62%, to trade at 2,787.19. (8.20 a.m., IST)
Japanese and Indian markets are closed today.
European markets open weak
European shares declined in an early trade on Thursday (Mar. 20, 2008) on concerns that the credit losses will further erode profit growth. Investors further lost confidence after fall in oil, copper and gold prices.Credit Suisse Group crashed as the second-biggest Swiss bank by assets announced that it would be in red for the first time in five years. BHP Billiton, the world`s largest mining company, dropped as commodity prices declined.
UK`s benchmark index, FTSE 100 fell 49.60 points, or 0.89%, to trade at 5,496.00.
French benchmark index, CAC 40 declined 40.68 points, or 0.89%, to trade at 4,515.27.
Germany`s benchmark index, DAX fell 45.49 points, or 0.72%, to trade at 6,315.73.
Indian ADRs end lower in falling US markets
US shares declined on Wednesday, erasing most of the gains of earlier session on concern that the banks may report further losses attached to bad loans.
The Dow Jones industrial average fell 293 points, or 2.36%, at 12,099.66. The NASDAQ composite index lost 58.30 points, or 2.57%, to 2,209.96. S&P 500 index went down 32.32 points, or 2.43%, to trade at 1,298.42.
Indian ADR`s fell in declining US market except Patni Computer Systems, which gained 0.46% to USD 10.94.
Losers:
Company USD % Gain / (Decline) Sterlite 17.22 (5.79) ICICI Bank 35.52 (10.21) Wipro 10.25 (4.21) Infosys 33.38 (3.16) HDFC Bank 92.00 (6.79) Satyam 21.64 (3.99) Tata Motors 15.91 (0.93) Tata Communications 24.48 (17.16) MTNL 4.88 (6.69) Dr Reddy`s 13.55 (0.29)
India`s inflation swelled by 0.81% to over 11-month high of 5.92% for the week ended Mar. 8, 2008. The rise is mainly attributed to the increase in prices of essential items like fruits, vegetables, pulses as well as some manufactured items.
The wholesale prices-based inflation stood at 5.11% in the previous week and the current spurt in inflation rate happened despite a high base of 6.51% a year ago.
During the week, food articles like arhar, gram, moong, maize, fruits and vegetables as well as condiments and spices became expensive. Prices of furnace oil, which is utilized for industrial purposes also shot up by 2%.
Manufactured products like imported edible oil, coconut oil and mustard oil also turned dearer. The government has imposed a ban on export of all edible oils with effect from March 17 for a period of one year to curb their rising prices.
The gigantic surge in inflation rate would now render RBI helpless to go for soft monetary stance, as the inflation is way above the central bank`s tolerance level of 5% for the current fiscal.
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