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Subject to credit crisis, the Tokyo stock market closed on the 10th plunge is expected on the 13th week likely continue to fall.

Integrated foreign August 10, followed on the 9th U.S. and European markets dramatic decline in the Tokyo stock market closed sharply lower because of global credit crisis began to panic emotional impact of Japanese investors.

The Nikkei 225 index closed down 406.51 points to 16,764.09 points, or 2.4%, the market was active again. Tokyo stocks on the 9th the dramatic oscillation, turnover reached 3.81 billion shares, in November 2005 the highest level since. On the 9th of the index rose 141.32 points.

The Tokyo Stock Exchange, including an all stock, the index fell 49.88 points, to 1,633.93 points, or 3%.

A Tokyo Stock Exchange, 1,445 stocks fell, 235 rose, 44 stocks unchanged.

Traders were traded in speculation, a lot of selling, or from more than one large investment funds, which face difficulties, forced to settle in the Japanese market positions to meet investor redemptions.

A European brokerage houses chief dealer said, which could result in a domino effect, causing more fund selling, on the 13th week the stock market may further decline. He also said that domestic transactions are basically surprised and afraid, maintain sideways.

Since 884.6 07 shipping stocks, metal stocks and steel stocks ranked the worst performers.

The market crash caused the fuse is BNP Paribas (RR) suspended three credit market fund’s net asset value, the reason is the flow completely lost its lead impossible to accurately calculate the value of the Fund. Korean stock market closed on the 10th dropped 1,828.49 points away

Korean stock market closed on the 10th dropped 1,828.49 points away

South Korea on the 10th stock market closed lower by 4.2% to 1,828.49 points, on July 3 lowest close since, also set on May 17, 2004 has been the largest single-day decline.

Integrated foreign August 10, by the global credit crunch worries transferred to inspire investors hedge bond market, the National Bank and other financial stocks led by scrapping, on the 10th Korean stock market closed down 4.2% to 1,828.49 points, on July 3 lowest close since. also set on May 17, 2004 has been the largest single-day decline.

Samsung Electronics and other export shares fell because of fears that the United States suboptimal mortgage loans threatens to undermine South Korea’s second-largest export market for economic growth; Hyundai Heavy Industries plummeted 7%, after the company announced lower-than-expected operating profit.

Week composite index fell 2.6% in line, and since July 26 record high of 2,015.48 points touched has been down 9.3%, 720 billion dollars in market value this disappearance.

KTB Asset Management chief executive ChangIn-whan said that this is a structural crisis, at least October before the market may not be a significant rebound in Danger; Now see more banks expose on the United States suboptimal remanded loan losses related sites, such cases may be difficult to come to an end in a short period of time.

Singapore Straits Times stock index fell on the 10th to 3,359.20 points

Singapore shares Straits Times Index closed on the 10th decline 54 points to 3,359.20 points, or 1.6%, the downtrend by the trend economic growth inhibition.

Integrated foreign August 10 report, before most Asian markets to the United States secondary mortgage issues affected the expansion expressed concern that the Singapore Straits Times stock index closed lower on the 10th of 54 points, or 1.6%, to 3,359.20 points, recovering some early set at 3,318.93. The Nikkei fell 3.4% to 3,298.42 points.

Turnover was basically the same, with 22.7 million shares, on the 8th of 23.9 million shares.

171 shares rose, 736 shares fell.

Dealers said the local stock market on the 13th week volatility may continue, subject to market uncertainties, but the decline may be limited.

But another dealer said the market may from Singapore’s strong economic data buoyed the same time, the Monetary Authority of Singapore (Yam of Singapore) said it would provide liquidity to meet short-term market demand for funds.

Tags：Car insurance economic growth inhibition United States

The latest survey shows that many countries of central banks to reduce their dollar reserves in favor of the euro assets. However, this survey does not include the largest holders of US dollars foreign exchange reserves of Japan and China.

Investigations by the Royal Bank of Scotland’s targeting a total of 65 central banks. Changes in the provision of detailed information on the reserves of the Central Bank, nearly 70% of the Central Bank to increase the foreign exchange reserves held in euros. 52% of the foreign exchange reserves of the Central Bank to reduce the dollar-denominated assets. A researcher at the American Enterprise Institute, Rahman said : “These central banks do so because, because of the fear that the depreciation of the dollar, the euro continuing to rise. as for investment, they do not want to see their foreign currency reserve assets Table losses. This also means that the many central banks are expected in the near future dollar depreciation will continue. “The findings are consistent with the International Monetary Fund earlier statistics of a group data. IMF 2004 annual report has suggested that the 2001 US dollars cent of the world’s reserves of 66.9%, in 2003 has been reduced to 63.5%. Meanwhile, the euro accounts for the ratio of foreign exchange reserves in 2001 from 16.7% in 2003, 19.7%. Over the past few years, the United States current account deficit continued to expand last year, the estimated figure is 650 billion US dollars. This huge deficit, largely depends on the world’s central bank to foot the bill. The Bloomberg news agency estimated that the United States needs to absorb every day about 1.8 billion US dollars in order to cover the deficit, supporting the dollar. Royal Bank of Scotland survey report, all countries in the world although the future of the Central Bank will continue to buy some extent in the United States treasury bonds, support America’s current account deficit, but the United States will no longer be able to rely on the past as a source of financing. Dollar reserves had encountered the most noteworthy of the biggest risks is that Royal Bank of Scotland to accept investigating 65 central banks, does not include the largest holders of dollar reserves in Japan and China. Britain’s “Financial Times” Giles economic editor published an article saying that the past few years, the United States does not rely on the hundreds of millions of investors, but only a few large central bank policy makers, in particular, the People’s Bank and the Bank of Japan. The article stressed that the People’s Bank of China in 2004 increased dollar reserves by 207 billion. the United States is equivalent to 650 billion US dollars current account deficit of 1 / 3. Giles said in the article, although this is for Japan and China’s own interests, but at the same time, all investors have their own limits, they may also worry that the dollar will bring risks. American Enterprise Institute Rahman acknowledged that the other central banks to shift more of the euro, Japan and China to ensure that the national currency is not appreciated, it must buy more dollars, the attendant, it is possible to suffer huge losses. He said : “If the yen or renminbi revaluation it means that the Japanese or the Chinese central bank’s dollar reserves will suffer huge losses. If the central bank holdings of dollar reserves limited, the problem is not very big. But China last year’s dollar reserves increased by 100 million over 2000. total reserves of more than 600 billion US dollars. such a reserve would have to bear the enormous risks. “Credit Suisse First Boston global economic research departments in charge Ms. Stevenson believe that China’s dollar reserves not only ensured China’s cheap exports, they will guarantee that the United States of low interest rates. She said : “China needs to maintain a high economic growth to absorb the huge work force, This requires that American consumers buy Chinese exports. the other hand, China’s foreign exchange reserves to buy dollars to invest, the United States helped maintain a low interest rate, so American consumers continue to buy Chinese products.

this cycle Looking at the present situation, seem to be effective. “Ms. Stevenson therefore of the view that in the next few years, Although China’s foreign exchange reserves may be subject to some degree of diversification, but foreign exchange reserves investment in the core will continue to be the direction of US dollars.

Related Links former US Treasury Secretary Robert Rubin warned the budget deficit and the trade deficit impact of a strong dollar will be vulnerable to the US States that the former Secretary of Treasury Robert Rubin, now, the United States budget deficit and trade deficit problem, the strong dollar policy is facing the challenge. Once the central bank to reduce dollar assets, the dollar is likely to decline significantly. Citigroup current Chairman of the Executive Committee, Robert Rubin, recently in Hong Kong to attend a seminar, said the United States current account deficit has reached a GDP of 6%, the personal savings rate is less than 1% of revenue, This is the 1930s in the number of these factors will lead to dollar weakness.

As finance minister during the United States had established a strong dollar policy Rubin acknowledged, the current budget deficit and trade deficit problem, depends on the dollar to face downward pressure on the big. He said that although the depreciation of the dollar helped to solve the problem of trade deficit But he would not agree to the exchange rate alone to achieve trade policy as a means to an end. Rubin said : “I served as minister of finance already convinced that strong currencies have good policies. monetary policy should not be used as trade policy tool. as long as the monetary policy so good preparation, we should encourage them to adopt a flexible exchange rate policy. “Rubin stated that the United States economy is still uncertain.

If global central bank will continue to the United States are not optimistic about the economic outlook, the dollar will depreciate significantly.

Investment analysts said that if the United States budget deficit and current account deficit continues to grow, Apart from the dollar will remain weak, the Asia-Pacific region by the central banks of confidence in dollar assets will be affected. A recent report revealed that in addition to not participating in the survey in Japan and China, other central banks are selling the dollar to buy the euro. Analysts predicted that the United States would allow the current dollar weakness, so as to help increase export competitiveness and reduce consumption. But with the American system indirectly contributed to the nationals of over-consumption and short-term fiscal and current account deficit will be two can not be reversed.

Tags：Economy United States