SINGAPORE--Stock markets continued to bleed on Friday with key Asian indices nose diving as much as 10% following overnight losses in the US despite concerted global efforts to ease the credit crunch, analysts said.
At 12:32 local time (04:08 GMT), Japan s Nikkei 225 shed 10.04% to 8,234.35, while Hong Kong s Hang Seng index tumbled 7.35% to 14,771.20 and South Korea s KOSPI Composite index slumped 6.26%.
I see no light at the end of this worst financial crisis in a century, said Arden Dai, analyst at consultancy firm Frost and Sullivan in Shanghai.
Panicking investors continued to flee equities, not appeased that the coordinated rate cuts of global central banks on Wednesday and Thursday would avert a major global economic downturn, they said.
I don t see the trend stopping because the meltdown reflects lack of confidence in the market that we have not seen in decades, said Dariusz Kowalzcyk, chief investment strategist at CFC Seymour Securities in Hong Kong.
Nothing suggests it would be averted. There must be a reason for them (investors) to stop panicking, he said.
Asian stock indexes plummeted, with Japan losing more than 11% in early trade as the Dow Jones Industrial Average bled for the seventh day, crashing 7.3% to close at 8,579.19 points on Thursday.
Major petrochemical stocks tumbled along, with Asahi Kasei down 7.96%, Mitsubishi Chemical 6.99% lower and Mitsui Chemicals off 1.74%.
Chinese state-owned oil refiner PetroChina was down 9.73% and while state-run petrochemicals giant Sinopec retreated 7.98% in Hong Kong.
The Asian region continued to show strains from the raging financial turmoil, with Singapore recording its second consecutive quarter of declines in economic output.
The city-state, whose gross domestic product (GDP) shrank an annualised 6.3% in the third quarter, is the second country to fall into a technical recession in the Asia-Pacific region after New Zealand.
The markets ignored moves by central banks led by the US Federal Reserves across the world to inject liquidity into the financial system.
Clearly that [rate cuts and bailouts] was not enough. The solution should come from governments by a large-scale nationalization of their banking sector, said CFC s Kowalzcyk.
It [rate cuts] does not change the big picture of frozen credit market. There is a complete breakdown of confidence in the banking system, he said.
Interbank rates, the cost of loans banks charge each other, continued to soar due to heightened risks of defaults, he added.
The mass market needs to calm down and not be overly anxious, said Zhang Yan, Dalian-based analyst at Da Tong Securities.
At 12:32 local time (04:08 GMT), Japan s Nikkei 225 shed 10.04% to 8,234.35, while Hong Kong s Hang Seng index tumbled 7.35% to 14,771.20 and South Korea s KOSPI Composite index slumped 6.26%.
I see no light at the end of this worst financial crisis in a century, said Arden Dai, analyst at consultancy firm Frost and Sullivan in Shanghai.
Panicking investors continued to flee equities, not appeased that the coordinated rate cuts of global central banks on Wednesday and Thursday would avert a major global economic downturn, they said.
I don t see the trend stopping because the meltdown reflects lack of confidence in the market that we have not seen in decades, said Dariusz Kowalzcyk, chief investment strategist at CFC Seymour Securities in Hong Kong.
Nothing suggests it would be averted. There must be a reason for them (investors) to stop panicking, he said.
Asian stock indexes plummeted, with Japan losing more than 11% in early trade as the Dow Jones Industrial Average bled for the seventh day, crashing 7.3% to close at 8,579.19 points on Thursday.
Major petrochemical stocks tumbled along, with Asahi Kasei down 7.96%, Mitsubishi Chemical 6.99% lower and Mitsui Chemicals off 1.74%.
Chinese state-owned oil refiner PetroChina was down 9.73% and while state-run petrochemicals giant Sinopec retreated 7.98% in Hong Kong.
The Asian region continued to show strains from the raging financial turmoil, with Singapore recording its second consecutive quarter of declines in economic output.
The city-state, whose gross domestic product (GDP) shrank an annualised 6.3% in the third quarter, is the second country to fall into a technical recession in the Asia-Pacific region after New Zealand.
The markets ignored moves by central banks led by the US Federal Reserves across the world to inject liquidity into the financial system.
Clearly that [rate cuts and bailouts] was not enough. The solution should come from governments by a large-scale nationalization of their banking sector, said CFC s Kowalzcyk.
It [rate cuts] does not change the big picture of frozen credit market. There is a complete breakdown of confidence in the banking system, he said.
Interbank rates, the cost of loans banks charge each other, continued to soar due to heightened risks of defaults, he added.
The mass market needs to calm down and not be overly anxious, said Zhang Yan, Dalian-based analyst at Da Tong Securities.
