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By JEREMIAH MARQUEZ
The Associated Press
Thursday, September 18, 2008; 1:54 AM HONG KONG -- Asian stocks tumbled Thursday, tracking declines on Wall
Street as investors feared more companies could succumb to the global
financial crisis that forced the U.S. to bail out troubled insurer
American International Group Inc.
Every regional benchmark fell deeply in the red. Hong Kong's Hang Seng Index led the region's losses, tanking 1,272.86
points, or 7.22 percent, to 16,364.33 _ its lowest level in over two years. In Japan, the Nikkei 225 stock index was down 445.67 points, or 3.79
percent, at 11,304.12. Australia's S&P/ASX200 index fell more than 3.5
percent, South Korea's Kospi lost 3.6 percent and Shanghai's index fell
5.8 percent.
ad_icon The losses tracked U.S. markets, where the Dow Jones industrial average
fell about 450 points, or 4.06 percent, to 10,609.66. Investors were unsettled by the Federal Reserve's $85 billion loan to
AIG, the huge U.S. insurer that lost billions in the risky business of
insuring against bond defaults. It was the latest financial giant to
fall in a historic financial crisis on Wall Street that's already
claimed investment banks Lehman Brothers and Merrill Lynch. "It's a complete collapse of confidence," said Francis Lun, general
manager of Fulbright Securities Ltd in Hong Kong. "The financial crisis
in the U.S. is hitting everyone, everyone is running for cover. If the
largest insurance company can fail, than no one is safe." As equities markets staggered, investors fled to gold, seen as a safe
haven in times of trouble. Gold for December delivery rose as much as
$90.40, or 11.6 percent, to $870.90 an ounce in after-hours trading on
the New York Mercantile Exchange after jumping $70 to settle at $850.50
in the regular session. Oil rose above $97 in Asian trade Thursday, extending its big gains
overnight. The dollar was little changed at 104.32 yen and the euro rose
to $1.4345. Financial stocks across Asian went into a tailspin. Japan's three megabanks fell hard: Mizuho Financial Group, Inc. sank 7.2
percent, Mitsubishi UFJ Financial Group, Inc. shed 4.6 percent, and
Sumitomo Mitsui Financial Group retreated 7.4 percent. Leading China lender Industrial & Commercial Bank of China Ltd, or ICBC,
fell over 5 percent in Hong Kong. Macquarie Group Ltd., Australia's biggest investment bank and securities
firm, took an 18 percent nosedive. Richard herring, the director of trading at Burrell Stockbroking, said
Australian investors were nervous about AIG bailout. "It has actually opened up a whole lot of other questions for investors
to answer and that is: AIG is on the rack, what else is potentially out
there that could go under?" Herring said. Major exporters including auto makers and electronics firms also wilted,
hurt by a sagging dollar and slowing overseas markets. In Japan, Nintendo Co., maker of the popular Wii game console, tumbled
4.4 percent after earlier hitting a near year-low.
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