Asia Roundup: Spooked by fresh concerns

HONG KONG: Asian markets slumped yesterday as traders switched their attention from the US debt deal to the weakening global economic outlook and fears of fresh sovereign debt contagion in the eurozone.

Despite President Barack Obama's signing off on the deal to raise the US debt ceiling and avoid a default, equities suffered a heavy sell-off and investors put their cash in safe haven gold, which surged to a record high.

Tokyo shares tumbled 2.11 per cent, their sharpest percentage loss since the March 11 quake on a continued strong yen as weak US economic data overshadowed the US debt deal.

The Nikkei-225 index dropped 207.45 points to 9,637.14, the sharpest percentage loss since March 15. The Topix index of all first-section issues closed down 17.21 points, or 2.04 percent to 826.75.

Shanghai ended flat, with concerns over the domestic economy weighing on sentiment. The composite index closed down 0.77 points at 2,678.49.

"There are a lot of negative numbers coming out and investors are worried that domestic macro-economic data due next week could bring more bad news," Tang Yonggang, an analyst at Hongyuan Securities, told Dow Jones Newswires.

Sydney tumbled 2.27 per cent, or 100.8 points, to 4,332.8, while Seoul dived 2.59 per cent, or 55.01 points, to 2,066.26.

The red numbers in Asia followed similar losses on Wall Street, where markets fell for an eighth straight day.

The Dow Jones Industrial Average closed lower by 265.87 points (2.19 per cent) at 11,866.77 and the broader S&P 500 dropped 32.89 points (2.56 per cent) to 1,254.05.

In other Asian markets yesterday:

* Taipei fell 1.49 per cent, or 127.86 points, to 8,456.86.

* Manila fell 1.16 per cent, or 52.78 points, to 4,488.45.

* Jakarta fell 0.99 per cent, or 41.35 points, to 4,136.50.

* Bangkok fell 0.54 per cent, or 6.15 points, to 1,133.46.

* Mumbai slid 0.94 per cent, or 169.34 points, to 17,940.55, a six-week low . - AFP