Fears Of Rising U.S. Rates Hurt Some Asian Markets
May 15, 2011
Japanese stocks tumbled as arbitrage selling by foreign brokerages and weakness in futures prices continued for the fourth straight session, sending the Nikkei average to its lowest close since November 24, 2010 the renewed threat of the U.S. Federal Reserve Board raising interest rates in the near future drove share prices down in the Hong Kong, Singapore and Australian stock markets In Malaysia, profit-taking was blamed for the market's decline, but not news that the country's money supply growth increased in July. Philippine stocks rose on heavy demand for blue-chip issues as a result of stronger-than-expected economic figures released over the weekend and the signing of a peace pact with former Muslim separatists. Taiwan's shares also rose on investors optimism. Thailand's economic problems and political instability caused investors to sell. South Korean stocks were also down, and Indonesian shares declined after early gains. As of 5:30 a.m. EDT Monday, the Dow Jones China 88 Index gained 0.94 to 99.89, after rising 3.49 Friday. The Dow Jones Shanghai Index slipped 0.67 to 103.59, after gaining 3.18 the previous day. The Dow Jones Shenzhen Index added 4.31 to 114.19, after rising 5.17 the previous day. In dollar terms, the Asian-Pacific sector of the Dow Jones World Stock Index fell 0.92 to 113.68 Friday, after dropping 1.10 Friday. The world as a whole lost 0.14 to 136.89, after falling 0.54 the previous day. Industrial technology and life insurance shares led Dow Jones Industry Groups, while plantation and shipbuilding issues were among the laggers. Asian Stock Market Indexes Market Australia
