Most Asian stocks close lower despite US rally

Most Asian stocks close lower despite US rally
AFP
Comment E-mail Print Share
First Published: Wed, Nov 28 2007. 05 55 PM IST
Updated: Wed, Nov 28 2007. 05 55 PM IST
Hong Kong: Asian stocks closed mostly down on 28 November 2007 despite an overnight Wall Street rally as investors fretted about US economic prospects and potential moves to slow the Chinese economy.
Tokyo was down 0.45 percent, Shanghai and Taipei both slipped 1.19%, Seoul was down 1.4%, Sydney shed 1.0% and Mumbai closed down 0.99%.
Hong Kong was the only major market to buck the trend, rising 0.59%.
Analysts said investors generally failed to respond to a rally on Wall Street on Tuesday, which was triggered after news of a multibillion dollar cash injection into ailing US banking giant Citigroup.
That piece of news had already been factored in by Asian stocks earlier, they said.
But investors were still concerned about the default crisis in the US subprime mortgage sector, which has led to huge financial losses, slowed the country’s housing market and threatens a sharp economic slowdown.
Sentiment was also hit after a state media report that China’s President Hu Jintao and the nation’s political elite had made avoiding economic overheating and curbing inflation their top priorities for next year.
Japanese share prices closed down 0.45% as investors took profits from the recent rebound amid jitters about the US subprime mortgage crisis, dealers said.
Chinese share prices closed 1.19% lower, led by property developers and steelmakers amid worries over further policy tightening measures by the government, dealers said.
Chinese President Hu Jintao and the nation’s political elite have made preventing economic overheating and curbing inflation their top priorities for next year, state media reported Wednesday.
“Further macro-economic policy adjustments will impact the stock market and investors need to pay attention,” said Wu Chunlong, an analyst with China Securities Research.
The benchmark Shanghai Composite Index, which covers both A and B shares, closed down 57.72 points at 4,803.39, its lowest level since 20 August.
Comment E-mail Print Share
First Published: Wed, Nov 28 2007. 05 55 PM IST