Update: The following Liveblogs the drop, and partial rebound. Latest reports most markets are still off, but have recovered from their steep earlier falls. See updates.
Update: Us Futures for opening now up! What a roller coaster - See Update. Below is Chronological record of the night
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The Wall Street Journal Online reports, South Korea Kospi Index is down 9.9%.
SEOUL (Dow Jones)--South Korean shares were hammered by waves of selling Tuesday morning, driving the main Kospi stock index down as much as 9.9% and prompting the market operator to briefly suspend program trading.
Selling dragged down most of the market, with banks and brokerages particularly hard hit. A surge of sell orders from foreign investors was the main driving force behind the selloff. At 0250 GMT the Kospi was down 8.4%.
The market is in "panic" and "making any kind of comment would be meaningless."
Pamela Sampson, of the Associated Press reports, Asian stocks tumble after Wall Street rout
BANGKOK (AP) — Asian stocks markets were thrown into a tailspin Tuesday as flustered investors fearing a possible global recession continued to flee stocks. Indexes in South Korea and Hong Kong sank about 7 percent.
Oil prices tumbled to their lowest in almost a year to near $76 a barrel on expectations that a slowing global economy could crimp demand for fuel. The dollar was lower against the yen and the euro.
The sell-off, which adds to sharp losses in the past few days, comes after the Dow Jones industrials fell 634.76 points on Monday, the sixth-worst point decline for the Dow in the last 112 years, in response to the Standard and Poor's downgrade of the U.S. credit rating.
Michael McCarthy, chief strategist at Sydney-based stockbroker CMC Markets, attributed the market turbulence to fears that the struggling U.S. economy is quickly losing momentum. "We're clearly in fear territory," McCarthy said. "The major driver here seems to be weakness in the U.S. economy. There are fears that it's starting to stall and if that's the case, the whole global growth scenario could fall over."
Japan's Nikkei 225 index dived 4.4 percent to 8,694.31 and Hong Kong's Hang Seng plummeted 6.7 percent to 19,110.39.
On CNN'S special late night Pierce Morgan interviewed Nouriel Roubini says, a double dipper recession is now likely. Earlier, in the interview Pierce Morgan, he said the chances of a double-dipper recession was 50%-50%, but that we are now in a vicious down-ward cycle.
Richard Quest, is in Asia and says, Hong Kong shares opened down 6%. The Australian market is down 5%. When Morgan asked Quest is prediction of a double-dipper he says, yes, even if it is not long enough to technically, qualify, as a recession, he expects we will have, at least, another quarter of a downturn.
Investors are still worried about Italian debt, as well as several other weak European countries. Asian markets fear a double dipper recession in the US will further diminish already weak US consumer spending.
Looks like this is going to be another rough night, and longer.
One analysts thinks there may be a brief technical rally of a few hundred points in the US markets as often occurs after huge losses, but he believes others will sell into any rise, putting it to an end, relatively quickly.
Mon Aug 08, 2011 at 9:53 PM PT: http://www.hindustantimes.com/...
Market meltdown continues; Sensex opens down
The BSE Sensex opened 472 points down and the Nifty slipped below the 5,000 mark on Tuesday as Asian equity markets were sharply down as investors fearing a possible global economic slowdown continued to flee stocks. Oil fell below $78 per barrel, toppling to its lowest price of the year
on concerns that a slowing global economy could crimp demand for fuel.
Japan's Nikkei 225 index plunged 4.4% to 8,694.31 in the morning session, while Hong Kong's Hang Seng index plummeted 7.3% to 18,998.51. South Korea's Kospi index plummeted 8.2% to 1,716.05
Mon Aug 08, 2011 at 10:00 PM PT: CNN says, Asian traders are starting to use the word panic, to describe acclerating loses.
Mon Aug 08, 2011 at 10:19 PM PT: http://www.theborneopost.com/...
Asian markets tumble
Posted on August 9, 2011, Tuesday
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A US recession would hurt Asia’s export-led economies. “You can’t control it,” Peter Esho, chief market analyst at City Index, told the BBC. “You have the onset of fear in the market.
At the heart of the sell-off is the fear that ongoing debt problems in the US and Europe will slow economic growth and dent corporate profits. “What’s rocking the market is a growth scare,” said Kathleen Gaffney of Loomis Sayles. She said investors were concerned about “how Europe and the US are going to work their way out of a high debt burden” if the global economy slows.
Analysts said that while economies in Asia had been growing robustly and the outlook for the region remained positive, a slowdown in the US and Europe could hurt growth significantly. Not least because the stock market slump may put off consumer and corporate spending.
Rajiv Biswas of IHS Global Insight told the BBC that investors were also worried that the cut in the US credit rating would force a serious reining in of bugetary spending. “That will be a big drag on growth,” he said. On Monday, Singapore cut its growth forecast for this year to between 5-6%,
“
Yikes, those poor folks in Singapore, having to adjust down to a growth rate of only 5% to 6% per year, really breaks my heart.
Mon Aug 08, 2011 at 10:34 PM PT: Randomfacts just informed me that he wrote about this about five hours ago, here. Sorry, I missed it.
http://www.dailykos.com/...
Mon Aug 08, 2011 at 10:53 PM PT: Asian Markets have now reversed and are rebounding as investers seek out bargains.
Heres a summary from Reuters. I'll get the link to their website in a minute.
Symb Index Mkt Report Time Last Chg Chg %
.TRXFLDJPP Thomson Reuters Equity Japan Index 1:49am EDT 67.27 -1.15 -1.69%
.TRXFLDHKP Thomson Reuters Equity HK Index 1:48am EDT 225.63 -9.21 -3.92%
.TRXFLDCNP Thomson Reuters Equity China Index 1:49am EDT 277.19 +0.78 +0.28%
.TRXFLDINP Thomson Reuters Equity India Index 1:49am EDT 561.35 -6.83 -1.20%
.N225 Nikkei Stock Average 225 View 1:29am EDT 8,879.52 -218.04 -2.40%
.HSI Hang Seng Index View 1:34am EDT 19,550.59 -939.98 -4.59%
.AORD ASX All Ordinaries Index 1:49am EDT 4,092.10 +35.40 +0.87%
.KS11 KOSPI Index 1:49am EDT 1,811.85 -57.60 -3.08%
.FTSTI Straits Times Index 6:55pm EDT 2,884.00 +0.00 +0.00%
.SETI SET Composite Index 1:31am EDT 1,051.80 -26.39 -2.45%
.JKSE Jakarta Composite 1:00am EDT 3,747.48 -102.79 -2.67%
.PSI PSE Composite Index 12:29am EDT 4,157.03 -174.21 -4.02%
.KSE Karachi SE 100 Index 1:49am EDT 11,246.21 -157.96 -1.39%
.SSEC Shanghai Composite Index 1:49am EDT 2,529.93 +3.12 +0.12%
.FTFBMKLCI FTSE Bursa Malaysia KLCI 1:34am EDT 1,461.21 -35.78 -2.39%
Mon Aug 08, 2011 at 11:10 PM PT: http://www.reuters.com/...
Nikkei recoups some ground on bargain hunting, FOMC in focus
Tue Aug 9, 2011 1:37am EDT
* Retail investors seen bargain hunting -traders
* Foreign investors flee stocks -traders
* Redemptions and margin calls seen -traders
* Nikkei may see further selling unless Fed eases
By Ayai Tomisawa
TOKYO, Aug 9 (Reuters) - The Nikkei average trimmed falls after tumbling more than 4 percent in heavy volume on Tuesday as retail investors bought on dips, though the mood remained sour as focus turned to a U.S. Federal Reserve policy-setting meeting.
While foreign investors fled stocks after Wall Street tumbled in the wake of Standard & Poor's downgrade to U.S. sovereign debt, retail investors bought sharp decliners and futures players bought on dips, traders said.
The benchmark Nikkei was down 2.4 percent at 8,881.31 after falling as low as 8,656.79, just above an intraday low marked on March 17 of 8,639.56.
Mon Aug 08, 2011 at 11:42 PM PT: http://www.moneycontrol.com/...
S&P assurance calms mkt; Sensex recoups 400 pts
With a pick-up in short covering, Sensex has managed to see a meaningful recovery of 400 points from the day's low point. Rating agency S&P's statement that there would be no immediate impact of US rating cut on India provided the much-needed relief. This was in contrast to the talks doing the rounds yesterday that S&P downgrade may hit other countries and companies.
The 30-share BSE Sensex was trading at 16,843, down 147 points after 400 points recovery from day's low of 16,432. The 50-share NSE Nifty was trading down 43 points at 5,075.
Asian markets too recovered 3-5% from day's low. China's Shanghai, which fell 2.5% in early trade, was flat. Kospi, which tumbled 9%, lost just 3.4%
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5:56 AM PT: http://www.cbsnews.com/...
CBS/AP)
LONDON - Speculation that the U.S. Federal Reserve may announce another round of monetary easing helped stocks recover their poise Tuesday after many global markets entered official bear market territory.
The Fed gave no indication of what action it would take at meeting Tuesday, but hopes that it will be forced into more action helped stocks in Europe and Wall Street futures recover. Investors still remained worried, however, about the consequences of the U.S. credit downgrade, Europe's debt crisis and mounting expectations of a global recession.
"Rumors are rife when markets are like this, the latest being that there will be a statement from the Fed ahead of the open," said David Jones, chief market strategist at IG Index. "Traders are shell-shocked by the recent drops and it remains difficult to see what can be done in the short-term to instill any confidence back into the market."
Eyes on Fed amid economic, market turmoil
In Europe, the FTSE 100 index of leading British shares was up 0.2 percent at 5,076 while France's CAC-40 rose 0.7 percent. Germany's DAX though continued to underperform its peers, trading 1.4 percent lower at 5,841
6:14 AM PT: http://www.newstimes.com/...
http://www.newstimes.com/...
Bond eases but fear spreads to Europe investors breathed a sigh of relief that the European Central Bank would buy the two countries' bonds in order to lower their borrowing costs. Photo: Michel Euler / AP
BRUSSELS (AP) — The fear that has gripped Europe's sovereign debt market for months appeared to be taking root in its stock markets on Tuesday as investors increasingly worried about uncertain growth prospects for some of the continent's biggest companies/
Spain and Italy watched their borrowing costs drop further in signs of success for a massive central bank move to quell Europe debt's crisis, but stock markets were in turmoil as stronger economies showed worrying signs of slowing.
Germany's stock market was down for the tenth consecutive day and new data from Europe's growth engine showed that export growth — a closely watched economic indicator — is slowing down.
Read more: http://www.newstimes.com/...