Asia, Europe equities lower on subprime, credit worries

Equities markets in the Asia-Pacific region declined on Wednesday on resurgent concerns related to the subprime mortgage crisis as banks are expected to take more writedowns. The Taiex was down 1.62 percent to 7,894.47 in Taiwan while South Korea’s Kospi index was 1.9 percent lower to 1,687.91. In Australia, the Sydney Ordinaries fell 1.96 percent to 5,577.3 as the S&P/ASX200 dropped 2.18 percent to 5,496.5. The Shanghai Composite was down 2.09 percent to 4,567.03 while Hong Kong’s Hang Seng was 2.21 percent lower to 23,590.58. The FTSE Straits Times Index fell 2.3 percent to 3,026.83 and India’s Sensex dropped 2.53 percent to 17,617.6.

Tokyo’s markets were also lower. The Nikkei 225 was down 3.26 percent to 13,310.37 and the Topix index fell 3.16 percent to 1,302.72 while the Mothers market dropped 2.75 percent to 669.88. The real estate sector was down on worries that credit that it harder to secure will make it harder for people to buy. Utilities declined on higher energy costs after oil prices rose above $100 per barrel. Banks were also lower on the session.

European equities markets declined on renewed worries about losses in credit markets. The FTSE Eurofirst 300 was down 1.15 percent to 1,322.18. Madrid’s IBEX was 1.43 percent lower to 13,080.4 while the Dax fell 1.47 percent to 6,899.68 and the CAC-40 dropped 1.49 percent to 4,812.81. The few gainers on the continent included steelmakers, medical device manufacturers, and the semiconductors and aerospace sectors. Decliners included utilities, airlines, the telecommunications sector, drug makers, and some banks.

London’s markets also saw losses. The FTSE 100 was down 1.23 percent to 4,893.6 while the FTSE 250 dropped 10,124.4. With one exception, banks were lower. Home builders were down on broker downgrades in the sector, and the insurance and retail sectors were mostly lower on the session. Most miners saw gains, however, while the oil sector was mixed. Brewers were also mixed.

Wall Street was up slightly in mid-afternoon trade after early declines as investors seemed to choose to ignore gains in the Consumer Price Index. The Dow Jones Industrial Average was 0.17 percent higher to 12,358.79 while the Nasdaq Composite was up 0.26 percent to 2,312.17 and the S&P 500 added 0.24 percent to 1,352. Banks and computer makers saw gains, but telecoms, car makers and the internet sector all saw declines.

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