Financial crisis sweeps U.S., Japan, Korea, and Hong Kong

Associated Press
TAIPEI (Taiwan News)- Dow Jones again slipped sharply 678.91 points, or 7.3%, below 9000 points to 8575.19 points on Oct 9, the lowest point in five years. Dow Jones has been crashing for a consecutive 7 days, a total of 2271 points drop or 20.9%. Wall Street’s confidence collapse cannot even be revived by bailout plan or interest rate cut.

U.S. stock market tumble gave rise to Asian market total collapses. Japan’s Nikkei dropped 974.12 points (10.64%); Kospi fell by 7% as of this afternoon; Hong Kong’s Heng Seng Index plummeted over a thousand points. Nikkei fell under 9000 points for the first time since June 26, 2003 and the drastic fall caused Japan’s futures market to cease trade.


In the wake of global financial crisis, Japan’s Yamato Life Insurance for 98 years filed for bankruptcy on Oct 10, the first insurance company closed in 7 years. Its debt exceeded 269.5 billion Japanese Yens (NT$ 88.68 billion) more than its asset value of 11.5 billion Yens (NT$3.783 billion).


TAIEX was spared today for closing on Double Ten Day. However, after Central Bank announced to lower interest rate, TAIEX still plunged 75.69 points to 5130.71 points, the lowest point since July 4, 2003. Franchises worried that even if Taiwan stock market escaped the disaster today, a huge crash was looming next week.


by Taiwan News, Website Editorial Staff