Recession fears keep Asian stocks under pressure

by Sanjay Jha | October 27, 2008 at 09:10 pm

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Stocks market in Asia continues to slide. Markets opened mostly lower in early trade on Tuesday, a day after steep falls, as investors braced themselves for a severe worldwide economic downturn. Due to Diwali holidays Indian market is closed.

Fears of a deep and prolonged global recession has affected investors mood everywhere and market is unable to give fresh confidence.

Share prices in Asia have lost ground again as markets opened, following volatile trading throughout the world.
Japan's Nikkei index opened down 2%, falling below the 7,000 mark for the first time in 26 years, but recovered by lunchtime, down 0.95%.
In Australia, shares fell 1.7% in morning trade, while South Korea's Kospi dropped 2.6%.
But in Hong Kong shares rose by 4.5% in early trading, bucking a loss of 12.7% on Monday.
The US and Europe ended lower on Monday amid a growing belief that key economies are heading into recession.
The FTSE in London and Cac in Paris closed behind, with European indexes touching five-year lows during the day.
On Wall Street, the main Dow Jones index fell 2.42%, despite being boosted earlier in the day by a surprise rise in new home sales in September.
At close the FTSE in London closed down 0.79%, the Cac in Paris was down 3.96% but the Dax in Frankfurt was up 0.91%.
Earlier the FTSE had fallen 5.6% to 3,665 points - its lowest level since April 2003.
On the currency markets, Japan's yen reached a 13-year high against the US dollar on Monday, despite warnings from the Group of Seven (G7) industrialised nations that the currency's strength was a threat to economic stability.
Meanwhile Japan's Prime Minister Taro Aso has said he will delay calling a general election in order to handle the economic crisis, reports Kyodo news agency.
Mr Aso, who took office a month ago, had been widely expected to call an early election to address the deep divisions in the Japanese parliament.