Bloodbath in Japan as Panic Tramples Asian Markets Friday, October 10, 2008 link TOKYO — Japan's key stock index plunged a stunning 9.6 percent Friday to close out its worst week in history as frantic investors worried about a global recession dumped stocks after huge losses on Wall Street. The benchmark Nikkei 225 index tumbled 881.06 points to 8,276.43, its lowest since May 2003. It was its biggest one-day percentage loss since the stock market crash of October 1987. "Selling is unstoppable in New York and Tokyo," said Yutaka Miura, senior strategist at Shinko Securities Co. Ltd. in Tokyo. "Investors were gripped by fear." Meanwhile, Australian market watchers called it "Black Friday." The benchmark S&P/ASX200 plummeted 8.34 percent, or 360.2 points, to close at 3960.7, its biggest one-day percentage loss ever. Together with the 8.2 percent plunge on the broader All Ordinaries index — which marked its greatest loss in 21 years — Friday's session wiped 106 billion Australian dollars (US$70 billion) from the value of stocks. Most trading on Russia's stock markets was suspended Friday after massive selloffs on Wall Street and Asian markets, Russian news agencies reported. Hong Kong's Hang Seng index tumbled more than 8 percent, South Korea's Kospi shed 7.4 percent, Shanghai's benchmark fell 4.1 percent, and Singapore's Straits Times index was off 7.0 percent. In Syndey, Australia's S&P/ASX200 was down 6.8 percent. Friday's regional declines follow a 7.3 percent plunge in the Dow Jones industrial average Thursday to close below the 9,000-line for the first time in five years. Stocks nose-dived after a major credit-rating agency said it might cut its rating on General Motors Corp. and Ford Motor Co., further rattling investors already fretting over the impact of tight credit on the economy. The Dow's 2,271-point tumble over the last seven sessions is its steepest seven-day point drop ever. Its seven-day percentage decline of 20.9 percent is the largest since the seven-day plunge ending Oct. 26, 1987, when the Dow lost 23.8 percent. That sell-off included Black Monday, the Oct. 19, 1987 market crash that saw the Dow fall nearly 23 percent in a single day. Lucinda Chan, associate director of Macquarie Equities in Sydney, called the market moves "ghastly." "It is a very different and very unprecedented climate at the moment," she said. "Growth is going to be a major concern in this market and that is why the Australian market is getting a very hard pinch because we are a commodity export nation." Miura in Tokyo said the ongoing meltdown in global financial markets showed "confusion and uncertainty" among investors worldwide. Asia's falls come as finance ministers and central bankers from the Group of Seven industrialized nations prepared to meet later Friday in Washington. "Investors are not so sure that the G7 will announce effective measures to contain the global financial crisis," Miura said. In currencies, the dollar was hovering just above the 99-yen level Friday morning in Asia, strengthening from 98.82 yen late Thursday. The euro stood at $1.3595 from $1.3560.
Im scared. My economics professor totally freaked me out today. Hes an investor and says says hes frightened. I think more of the everyday ppl like me who dont understand much about stocks and bonds arent as concerned as they should be. ignorance is bliss.
Fortunes are being made by people who went short. It is also time to get ready to make a fortune when the market goes back up. People will realize hey I have a bunch of cash but its not giving me a good return. Being patient is a good option right now.
It's pretty obvious the world is reacting to the prospects of an Obama presidency. Is this really what you want people?
LOL - once Obama is elected, he will be in a great position to turn it around. The World loves Obama.... McCain.....uh......not so much. Nice try....but.....Epic failure on your part. DD
doubtfull, maybe the stock market. we haven't even begun to feel the affects of the credit crisis on mainstreet.
I don't know much of anything...this is my OPINION. Because this is irrational fear. When earnings are going up and people still aren't buying a stock, that tells you it's irrational. When analysts are calling it the end of capitalism and the next Great Depression, that's the time to bet the other way. This isn't about value...it's about fear and no one is buying in because of it. This too shall pass. This started because of the mortgage crisis...we've been working through that and aware of it for about 3 years now. If you know how to make money in a down economy, make hay now...because the bottom is near.
I agree Max, this sell off is all about fear, not about solid fundamentals. Once all the fear sellers are out, people will buy back in ....and it will start it's slow steady climb upwards. The G7 conference this weekend is HUGE...if they guarantee inter banking transfers....it will end the credit crunch in one fell swoop and the Market will rebound in a big way Monday. DD
