ARTICLES MODERN

Stocks fell sharply Monday in the Asian market is growing concern that the health of banks around the world the prospect of a recession, Asian exports will weaken the economies of the United States and Europe.
The Nikkei 225 index in Tokyo fell 4.3 percent to close at its lowest point since February 2004. The composite index of 4.3 percent in Seoul. S & P / ASX 200 index fell 3.3 percent in Sydney, Hong Kong’s Hang Seng Index fell 3.4 percent and Taiwan’s weighted index declined to 4.1 percent.

The pattern of trading futures markets suggested that selling in Asian markets indicates that the other is a weak and open trade in the United States Monday. Futures contracts maturing in December Standard & Poor’s 500 index fell 1.8 percent to 10088.8, while the Dow Jones industrial average futures fell 167 points, or 1.6 percent, to 10,197.

Nicholas Bibby, an economist at the Singapore office of Barclays Capital said the decline in stock prices throughout the region show that many investors are still worried about the possible spread of the banking difficulties, the House of Representatives passed a 700,000,000,000 U.S. dollars of financial assistance Plans last Friday in Washington.

“This is a fear of the spread,” he said, although the increase in Asian banks better market position than most to bear at present, because the region’s high savings rate usually means that the bank’s net loans to Asia in the global financial market .

Asia is also worried that exports have risen for several months because the region’s high savings rate means that it has weak consumer spending is still heavily dependent on overseas demand.

63.15, Hong Kong’s securities companies pointed out that investment in communications Monday, and even in the most recent issue of the financial markets, the combined trade balance, Japan, South Korea, Taiwan, Thailand, Indonesia and the Philippines has gone from a surplus of 19,000,000,000 U.S. dollars recently In October last year a deficit of 2,000,000,000 U.S. dollars in July. China is still only running a large trade surplus has always been.

Money market saw a steady weakening of the euro and the yen’s rapid rise, as investors worried that banks in Europe and the health of the economy and the continued flight of the apparent stability of the Japanese financial system.

Japanese yen rose two per cent against the dollar, which is worth 103.235 early Monday afternoon. The strong yen contributed to the decline in stock prices for the Japanese manufacturer Sony to a large extent, depend on exports.

But even weaken the dollar in Asia than the strong euro. Dollar up 1.2 percent against the euro, which is worth 1.3609 U.S. dollars.

Shanghai Stock Exchange, closed down in the past week China’s National Day holiday, closed down 5.2 percent.

In the China Securities Regulatory Commission yesterday announced that it will try to guarantee the introduction of short selling transactions limited, but did not say when the trial will begin.