Asian markets slump after Wall Street's slide

HONG KONG, DEC. 21. Asian stocks were mostly lower on Thursday with technology and telecommunication prices slumping as markets reacted to the U.S. Nasdaq composite index's 7 per cent loss.

Tokyo stocks plunged to their lowest level in nearly two years amid fears of economic slowdowns in the U.S. and Japan.

The benchmark 225-issue Nikkei Stock Average dropped 491.22 points, or 3.53 per cent, to 13,423.21. It was the lowest close since January 13, 1999, when it ended at 13,403.60. On Wednesday, the it had fallen 1.5 per cent.

In Hong Kong, shares tumbled as some telecommunications and technology stocks took a big hit. The Hang Seng Index lost 271.40 points, or 1.8 per cent, to close at 14,659.32.

Investors around the region were disappointed by the U.S. Federal Reserve's decision to leave interest rates unchanged and scared by the prospects of a U.S. economic downturn. Those factors pushed prices sharply lower on Wednesday on Wall Street and the selling continued in Asia Thursday.In currency dealings, the U.S. dollar fell slightly against the Japanese yen. The dollar bought 112.78 yen in late Tokyo trading, down 0.08 yen from Wednesday in Tokyo, but barely above its level of 112.77 from late on Wednesday in New York. Elsewhere, Thai shares closed with little change, after early losses were narrowed by gains in communications companies. The Stock Exchange of Thailand index closed down 0.06 point, or 0.02 per cent, at 269.85.

Malaysian prices were pushed lower as investors sold technology issues. The Kuala Lumpur Stock Exchange's Composite Index shed 4.55 points, or 0.6 per cent, to end at 700.96 points.

South Korean shares fell slightly, after recovering an early 3.3 per cent loss with help from buying by national pension funds. The Korea Composite Stock Price Index, or Kospi, shed 2.31 points, or 0.5 per cent, to 511.90.

Singapore shares fell for the third straight day, following declines in the U.S. markets. The Straits Times Index dropped 30.48 points, or 1.6 per cent, to 1,898.84.

- AP

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