Asia Stocks Fall in Worst Rout for 21 Years as Bailout Rejected

[Roland99]

Source: Bloomberg

he MSCI Asia Pacific Index retreated 3.3 percent to 107.66 as of 9:40 a.m. in Tokyo. The yield on U.S. Treasury 10-year notes rose 3 basis points to 3.59 percent as Treasury Secretary Henry Paulson said he'll work with Congress to salvage the rescue plan, while the dollar fell for a third day against the yen.

The MSCI Asian index has slumped 32 percent this year as credit turmoil caused the world's financial institutions to report more than $590 billion in losses and writedowns.

Japan's Nikkei 225 Stock Average lost 4.7 percent to 11,187.74. Benchmark indexes in Australia and South Korea declined more than 3 percent.

...

Mitsubishi UFJ, Japan's largest bank, retreated 6.6 percent to 875 yen. ANZ, Australia's fourth-largest bank, lost 5.6 percent to A$17.74. Woori Finance Holdings Co., with the biggest exposure to U.S. mortgage-related investments among South Korean banks, dropped 6.8 percent to 11,050 won.

Read more: http://www.bloomberg.com/apps/news?pid=20601080&sid=av2WpuqmEnRU&refer=asia

[Fresh_Start]

1. was reading trying to find out where to move investments to

surprisingly they said foreign is worse than domestic right now
go small caps because they have less international exposure
the crisis in the US is spreading rapidly internationally so Euro's aren't gonna be a shelter
invest in financials because there will be some type of bailout because there must be some type of bailout

[Roland99]

2. Gold/silver...Treasuries.

Won't get much return (well, might on gold for a while) but now is not the time to look for 10-15% returns or more. Now's the time to BE SAFE!

[FarCenter]

3. In terms of markets I'd say the Asian markets would do best

The US and UK will do worst.

Hong Kong will do badly, because it is still closely tied to the Anglo/American financials

The Eurozone would be next

Japan is next.

Singapore and possibly Shanghia will do the best.

But it is impractical for the average person to properly sequester funds there. At some point, the US will repudiate debt held by foreigners, and the foreigners will sieze US investments in their countries.

[aquart]

8. Brazil.

[On the Road]

11. Small Caps are Generally Weaker During a Recession

You might want to look at long-term charts before buying into any particular stock.

Safety might mean cash, or one of those stable funds for people who are about to retire. They have variations mixing stocks and bonds that are designed to preserve value over an x-year time horizon. I have a lot in the "2010" fund at Fidelity.

[jwirr]

4. I would guess that will place somewhat of a damper on the credit

line we have with them.

[Fresh_Start]

5. if China stops buying up America

what happens?

Americans can't get credit for cheap Chinese plastics or poisonous Chinese food and medicines
Chinese are stuck with a lot of bad US paper
I'm liking this more and more

[McCamy Taylor]

6. Saudis have LOTS of cash. But they will want assets for their money.

Real estate. Important companies that really do things, not B Ark crap companies like Banks and Mortgage Cos. A permanent piece of America.

[Skink]

7. When the Saudis buy it's at 10 cents on the dollar.

They are nothing like the U.S. congress.

[poppysgal]

9. I just wonder

what will happen to the price of crude?:think:

[muriel_volestrangler]

10. End result: Japan, Australian indices down about 4% by close, Hong Kong up a little

http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/stockmarket/default.stm

Currently, European indices are mixed - UK, France and Germany all had big falls when opening, but have more or less recovered all of it since then (Germany still about 1% down, though).

[Indi Guy]

12. Asian Markets Drop Sharply at Open (NYT)...

Source: New York Times

TOKYO — Asian stocks dropped in early trading on Tuesday, following the rejection in Washington of a $700 billion financial bailout package and a plunge in United States markets.

In Japan, Asia’s largest market, the Nikkei 225, dropped almost 5 percent in the first hour to 11,185.62 points. Benchmark indexes in South Korea, Australia and New Zealand all fell more than 4 percent.

Uncertainty appeared to sweep the region’s financial markets in the wake of the U.S. House of Representatives’ surprise rejection of the $700 billion bipartisan financial rescue plan. Investors seemed to be fleeing into what they perceived to be safer assets, such as government bonds, gold and currencies of countries relatively unaffected by the mortgage debacle, like Japan.

The dollar also plummeted against the yen, falling to less than 103.9 yen per dollar overnight from 106 yen per dollar last week. In early trading Tuesday, the dollar had rallied slightly to about 104.3 yen per dollar...

Read more: http://www.nytimes.com/2008/09/30/business/worldbusiness/30asiastox.html?ref=worldbusiness

[girl gone mad]

13. Looks like most will close above their lows. n/t

[Indi Guy]

14. I hope so...

The fact remains that our irresponsible "leadership" of the last eight years is responsible for the global credit crisis.

[Robbien]

15. The scary part is that the dollar is trading at 103.9

Not good. Not good at all.

[Lydia Leftcoast]

16. But it's back up over the 104 level

which is about where it was at the beginning of today.

[Name removed]

17. Deleted message

Message removed by moderator. 
[link:www.democraticunderground.com/forums/rules.html|Click
here] to review the message board rules.

[yoodle]

18. Ouch,

looks like I have to sell everything...:-(

[Augdog20]

19. The economic right wing had hissy fit with this statism

The economic right had a sissy-fit with the statism in this bill. They could not stand the nationalizing elements in the bill.
Check out more of my analysis of the opposition vote (& notes about market reactions) in my blog.
http://bluesunited.blogspot.com/2008/09/bailout-failure-analyzed-house-rollcall.html

[xchrom]

20. recommend