Asian Stocks Slide on Subprime Concerns; Mitsubishi UFJ Falls
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Asian stocks fell, led by banks, after Citigroup Inc. said it will increase writedowns on subprime-linked investments by as much as $11 billion. Mitsubishi UFJ Financial Group Inc. fell for a third day, while National Australia...
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Asian stocks fell, led by banks, after Citigroup Inc. said it will increase writedowns on subprime-linked investments by as much as $11 billion. Mitsubishi UFJ Financial Group Inc. fell for a third day, while National Australia Bank Ltd. dropped the most in seven weeks. China Mobile Ltd. led losses in Hong Kong, the region's worst-performing market today, after comments by China's Premier Wen Jiabao signaled a plan to allow mainland investors to buy the city's shares directly will be held up. ``The subprime issue hasn't been solved yet,'' said Samantha Ho, a Hong Kong-based fund manager who oversees more than $5 billion of Hong Kong and China equities at Invesco Asia Ltd. Delays to China's proposed relaxation of curbs on Hong Kong share investments is hurting sentiment in the city, she added. BHP Billiton Ltd., the world's largest mining company, slid after copper had the biggest weekly loss in two months. Inpex Holdings Inc. gained after crude oil prices ended last week at a high. PetroChina Co., which raised $8.9 billion in the world's biggest share sale this year, passed Exxon Mobil Corp. as the world's largest company by market value after surging on its trading debut in Shanghai. The Morgan Stanley Capital International Asia Pacific Index lost 1.5 percent to 166.06 as of 2:40 p.m. in Tokyo, having on Nov. 2 slipped 2.2 percent from a record close. The two-day decline is the largest since Aug. 17. Financial shares were the biggest drag among the benchmark's 10 industry groups today. Japan's Nikkei 225 Stock Average slid 1.5 percent to 16,269.15, while Taiwan and the Philippines were the only markets that rose. In the U.S., the Standard & Poor's 500 Index 0.1 percent on Nov. 2 after a report showed 166,000 jobs were created in October, almost double what economists had forecast. Subprime Writedowns Mitsubishi UFJ, Japan's largest publicly traded lender, fell 3.1 percent to 1,019 yen, adding to a two-day, 7.6 percent loss. National Australia, the country's largest bank, declined 2.3 percent to A$42.13, set for its biggest drop since Sept. 18. HSBC Holdings Plc, Europe's largest bank, slid 1.2 percent to HK$146.50 in Hong Kong. Citigroup said it will take an additional $8 billion to $11 billion in writedowns on mortgage-related securities after its subprime investments slumped. The lender said yesterday Chief Executive Officer and Chairman Charles Prince resigned after $6.5 billion of writedowns and losses from credit markets. Merrill Lynch & Co. shares fell on Nov. 2 by the most in six years, after Deutsche Bank AG analysts including Mike Mayo said the world's No. 1 brokerage may write down an additional $10 billion for losses on subprime assets. The company reported its biggest quarterly loss in its 93-year history, taking an $8.4 billion writedown that was almost double its forecast. China Delays ``Subprime concerns still linger, and will continue to do so until next year,'' said Lee Keon Hak, who helps manage $884 million of assets at CJ Asset Management Co. in Seoul. ``Investor sentiment has not recovered.'' Hong Kong's Hang Seng Index slumped 3 percent, set to close below 30,000 for the first time since Oct. 25. The benchmark jumped as much as 55 percent since the start of trading on Aug. 20, when China's government announced plans to let its citizens invest directly in the city's shares. The government needs to study the risks, increase knowledge among Chinese investors and prepare regulations to protect the stock markets in Hong Kong and at home before launching the program, Wen said yesterday during a trip to Uzbekistan. China Mobile, the world's largest wireless-phone carrier by users, lost 5.4 percent to HK$144 in Hong Kong. China Life Insurance Co., the world's biggest insurer by market value, slid 3.1 percent to HK$48.65 in the city. `Hitting the Rocks' ``The `through train' is hitting the rocks, possibly permanently,'' said Aaron Boesky, who manages $200 million as chief executive officer at Marco Polo Investments Ltd. in Hong Kong. ``I expect a
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Highlights:
The Morgan Stanley Capital International Asia Pacific Index lost 1.5 percent to 166.06 as of 2:40 p.m. in Tokyo, having on Nov. 2 slipped 2.2 percent from a record close. The two-day decline is the largest since Aug. 17. Financial...
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From the list : Stock Market '07 by mona_moolah
Financial shares were the biggest drag among the benchmark's 10 industry groups today.
Japan's Nikkei 225 Stock Average slid 1.5 percent to 16,269.15, while Taiwan and the Philippines were the only markets that rose. In the U.S., the Standard & Poor's 500 Index 0.1 percent on Nov. 2 after a report showed 166,000 jobs were created in October, almost double what economists had forecast.
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