World markets go Nasdaq way

World markets go Nasdaq way
REGAN MORRIS

SINGAPORE, Jan 5: Asian markets were sharply lower on Wednesday after America's high-tech darling, the Nasdaq market, suffered its biggest point drop ever on fears of US interest rate hikes. The falls spilled over into European markets. In Asia, the blue chip Hang Seng index of Hong Kong ended down 1,226.10 points or 7.18% at 15,846.72. It was the biggest point fall since the 1,438.31-point drop on October 28 1997 when the Asian currency crisis hit the Hong Kong market.

On Tuesday, the Nasdaq composite index dropped 5.56 per cent, or 229.95points to 3,901.20 a day after logging a record high of 4,131.15. The slide topped the index's previous all-time point-decline of 140.43, logged on Aug. 31, 1998, according to the Nasdaq market. In per centage terms Tuesday's decline was the 8th largest drop in Nasdaq history.

Tokyo stocks ended down 2.4 per cent at 18,542.55. South Korean stocks closed down 72.73 points, or 6.87 per cent, at 986.31 - their biggest one-day point drop. Singapore shares were down 5.0 percent at 2,402.14 in late trade.

The Hang Seng's dive followed the Dow Jones Industrial Average's 359.58-point or 3.17 per cent fall to 10,997.93 overnight, its first dip below 11,000 since December 1. "This was really unavoidable, with such big losses in New York," said Hiroshi Sato, of Cosmo Securities in Japan.