AP: World markets plunge for second day

[rodeodance]

World markets plunge for second day

By HANS GREIMEL, Associated Press Writer 46 minutes ago

TOKYO - Stock markets plunged across much of Asia for a second day Wednesday amid jitters about a sell-off in China's stock market and a worries about a possible slowdown in the Chinese and U.S. economies.


Shares in Tokyo, Hong Kong, Singapore, Malaysia, Australia, New Zealand, the Philippines and Indonesia all tumbled more than 3 percent in morning trading, following dismal overnight losses on Wall Street, the worst since the Sept. 11, 2001, terrorist attacks.

In China, stock modestly recovered from their 9 percent plunge Tuesday — their biggest drop in a decade. The Shanghai Composite Index was up 1.2 percent to 2,804.28.

But investors in other Asian markets dumped shares Wednesday, with Japan's Nikkei 225 stock index down 644.85 points, or 3.56 percent, to 17,475.07 points at the close of the morning session.......

http://news.yahoo.com/s/ap/20070228/ap_on_bi_ge/world_markets;_ylt=ApywEg8MvtFZlqaf2HcPRBOs0NUE

[Mojorabbit]

1. This isn't good is it

I kept hearing reassurances it was a one off, a glitch. I hope it does not snowball.

[rodeodance]

2. yes, -----i hear the same.

[jannyk]

6. Yeah, I remember the 'asian market flu' of

the 90's - wasn't pretty.

[Porcupine]

10. I think capitalism needs a big kick in the ass.

The best way to deliver that is to make all their money vanish. Then we can start to talk about treating the rest of us with some respect.

DIVE! DIVE!

[Warren Stupidity]

11. As painful as that may be

I completely agree with you. This system is rotten and we have become serfs for the benefit of a vanishingly small group of arrogant elites. It has to stop.

[orleans]

3. what's up with china? what do they know that our msm isn't telling us? n/t

[jannyk]

7. The Chinese market is rife with

corruption, fraud and irregularities. The Chinese gov't has started cracking down (a little) and there is a rumor of Capital Gains taxes - my husband (Chinese) thinks those that have made profits are selling off before they get caught in the 'net'.

Doesn't seem to matter why they are really doing it - they seem to have the power to shift global markets if they 'sneeze'.

[hatrack]

12. They manufacture lots of stuff that we buy, and now we're buying less

All those refrigerators, stoves, TVs, windows, tools that went into a house? They aren't selling like they used to, and China's getting nervous.

[azurnoir]

4. Does China have enough power to

create a global "slowdown", by selling off a large number of their holding all at once? It seems I have but I ill admit that I don't understand economics enough to understand how it works.

[Morgana LaFey]

13. No, you and hatrack are on the wrong track

at least as I understand it. China owns a LOT of our debt. You know that trillion dollars or so of debt Georgie racked up? Wellllll, good ole China is our creditor or a ton of it. WE are their debtor.

Don't know what caused the sneeze or hiccup yesterday (or today/tomorrow if that's the way it shakes out), but if they ever get truly mad at us, it's all over. Of course, they'll bring the rest of the world down with us, and it wouldn't take much.

More economically/financially knowledgeable folks: feel free to correct and/or elaborate.

[ngant17]

5. Wait, privitizing Social Security is a good idea

so when will the Repugs begin to sing that old song again? Now would be a good time to convince the doubters. Let it run on the stock market. So what if millions of senior citizens are momentarily thrown out on the street when the Dow goes south? They will bounce right back, right?

[xchrom]

8. should be interesting on wall street today.

we wiped out a whole years gains -- i think that was it -- yesterday.

[Ghost Dog]

9. Shanghai finally closed up 3.9%; Nikkei down 2.9%; Europe down but steadying now...

Global slide continues as Asia dumps stocks
By FT Reporters

Stock markets took another hit on Wednesday as European equities opened sharply lower, mirroring plunging indices across Asia and in the US.

The FTSE Eurofirst 300 fell 1.3 per cent to 1,486.78, following a 2.9 per cent slide – its biggest single-day decline in four years – in the previous session.

In London, the FTSE 100 fell more than 1 per cent to 6,221.1, while the CAC 40 in Paris shed 1.7 per cent to 5,494.02 and Frankfurt’s Xetra Dax lost 1.4 per cent to 6,721.51.

Stock markets across the Asia-Pacific region opened weaker Wednesday morning, continuing a global slump from the previous day that saw US stock indices posting their steepest drop since the September 11 2001 terrorism attack.

In Asia, Japan led the falls in the region, as investors used the global slide as an excuse to lock in profits after a long bull run that sent the Topix index to a 15-year high earlier this week.

The Nikkei 225 Index, which was down by 700 points at one stage – its biggest single-session plunge since September 2001 – ended 2.9 per cent lower at 17,604.12, while the broader Topix shed 3.2 per cent to 1,752.74.

Chinese stocks, which recorded their biggest fall in a decade on Tuesday, steadied as the benchmark benchmark Shanghai Composite Index recovered 3.9 per cent to 2,881.07.

Malaysian stocks dropped, extending the biggest loss in almost six years, while Singapore opened sharply lower and Seoul shares were headed to their biggest fall since June 2004. Taiwan’s market was was closed for a holiday.

/...