Carnage continues at Asian markets

Asian markets tanked on Wednesday, Aug 3, extending their losses as US stocks fell steeply overnight after the wrangling over the debt ceiling eased off and investors turned their attention to the stalling economy.

According to Reuters, on Tuesday, more weak US economic data fuelled concern about the economy even as Congress passed a debt-cutting measure in time to avoid a default.

US consumer spending fell in June for the first time in nearly two years and incomes barely rose, signs the economy lacked momentum as the second quarter drew to a close.

That followed Monday's weak manufacturing data from the United States, Europe and China and last week's disappointing second-quarter US GDP estimate, which reinforced fears that slowing economic growth could dampen oil demand, it said.

The FBM KLCI fell 13.33 points to 1,541.52 at mid-morning.

Market breadth was negative as losers thumped gainers by 457 to 51, while 155 counters traded unchanged. Volume was 203.91 million shares valued at RM234.54 million.

At the regional markets, Japans’ Nikkei 225 fell 2.21% to 9,627.11, Hong Kong’s Hang Seng Index lost 2.34% to 21,897.12, Taiwan’s Taiex down 2.51% to 8,369.23, South Korea’s Kospi tumbled 2.99% to 2,057.87, Singapore’s Straits Times Index lost 2.04% to 3,112.13 and the Shanghai Composite Index shed 0.76% to 2,658.88.

Among the losers, Nestle fell 60 sen to RM47, BAT down 44 sen to RM46.24, DiGi 22 sen to RM30, Petronas Gas and HLFG down 20 sen each to RM13.24 and RM13.02, Genting 18 sen to RM10.74, Tradewinds 17 sen to RM9.41, MISC 15 sen to RM7.40, Top Glove 13 sen to RM5.22 and Jaya Tiasa 11 sen to RM6.51.