The Wall Street Journal-20080119-Australia and India Drop- Focusing on U-S- Slump
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Australia and India Drop, Focusing on U.S. Slump
A WSJ News Roundup
Australian stocks tumbled for the 10th straight session, and Indian shares fell for a fifth day as cautious investors weighed worries about the U.S. economy against hopes of an economic-rescue package.
While key indexes in Japan and Hong Kong rose on Friday, they, too, remained down for the week. The Hang Seng Index's 6.2% loss for that period was the Hong Kong benchmark's worst showing since the week ended Aug. 19.
European markets also fell, hurt by a steady stream of bad news from the insurance and banking sectors that took the steam out of an early rally. The pan-European Dow Jones Stoxx 600 Index fell 1.1%, or 3.54 points, to 327.53, its lowest close since Aug. 14, 2006. The index tumbled 4.7% during the week, its sixth-straight weekly decline, and is down 10% this month.
In SYDNEY, a late rally wasn't enough to pull the benchmark S&P/ASX 200 Index into the black. Instead, it closed down 0.8%, or 49 points, at 5747.3 and set the longest losing streak since the index was introduced in 1992. It has lost 8.9% in those 10 sessions.
Stocks heavily exposed to the U.S. market took a beating. Youth fashion retailer Billabong, which generates about 45% of its earnings in the U.S., tumbled 3.8% to its lowest close since October 2004. James Hardie Industries, one of the biggest seller's of home siding in the U.S., lost 4.9%.
In MUMBAI, the Bombay Stock Exchange's 30-stock index Sensitive Index, or Sensex, skidded 3.5%, or 687.12 points, to 19013.70. The index fell 8.7% for the week, its largest weekly decline since May 21, 2006.
Reliance Industries lost 6.6% as investors who had bid up the shares in anticipation of strong earnings continued to take profits in the wake of Thursday's announcement.
In TOKYO, the benchmark Nikkei Stock Average of 225 companies rose 0.6% to 13861.29. That left the index down 9.4% this month. Investors picked up some beaten-down shares. Nintendo rose 3.4%, and steelmaker JFE Holdings advanced 3.7%.
In LONDON, the FTSE 100 Index closed marginally in the red with a loss of 0.7 point to 5901.70. It fell 4.8% over the week. Rio Tinto climbed 4.6% amid talk that BHP Billiton could sweeten its bid for the miner. Both companies declined to comment.
In PARIS, the CAC 40 dropped 1.3% to 5092.40. Societe Generale slumped 8.2% amid market talk that the French bank could unveil write- downs. The bank had no immediate comment.
In FRANKFURT, the DAX 30 Index lost 1.3% to 7314.17. IKB Deutsche Industriebank AG, which nearly collapsed under the weight of subprime investments, is up for sale, its biggest shareholder said. The stock slumped 4.9%.
