Tokyo: Shares in Asia took their biggest knock since voting day in the US presidential election Monday as the extraordinary political uncertainty and sharp falls in American technology stocks combined to wipe billions more dollars off regional markets. After nerves and profit warnings, Friday pushed the volatile tech-heavy Nasdaq down 5.3 per cent to a 12-month low - down 12 per cent since Tuesday's election and 25 per cent over the year - shares plummeted across Asia. Both the region's two main exchanges in Tokyo and Hong Kong fell 3.3 per cent in the morning session, for both the sharpest fall since voting day.Tokyo recovered some ground, the Nikkei-225 posting a 2.2 per cent drop by the close. But Hong Kong's Hang Seng index kept falling to mark a massive 3.7 per cent loss on the day. Some key Asian markets posted colossal losses as local concerns aggravated jitters seen worldwide over the stand-off between Republican George W. Bush and Democrat Al Gore.
Tech-heavy Taipei fell a massive 4.8 per cent, Seoul, additionally burdened by debt worries, fell 4.6 per cent, and Manila, awaiting the impeachment of President Joseph Estrada, fell 2.2 per cent. Since voting day, the Nikkei-225 has fallen 4.8 per cent and the Hang Seng 5.4 per cent, or 7.5 per cent if reaction on Wednesday to premature reports of a Bush victory - a result thought to herald worsening US-China relations - is included.
In Tokyo, Nikko Securities senior analyst Kazue Mayuzumi said the weakness of Prime Minister Yoshiro Mori concerned some investors. "But the Tokyo market is mostly concerned about developments in New York," he said. He singled out the stalemate in the US presidential election and the continual decline in the Nasdaq as key drags on the market.
AFP
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