Asian Markets Tumble on US Worries (AP) (07-03-2008)

SEOUL, South Korea (AP) -- Asian markets followed Wall Street’s plunge on Friday which was triggered by news about rising foreclosures on U.S. mortgages.

In Japan the Nikkei 225 index fell 3.3 percent to 12,782.80 as investors sold exporters amid further dollar weakness. Australia S&P/ASX200 index sank 3.2 percent while in Seoul the Korea Stock Price Index declined 2 percent. Hong Hong's Hang Seng index closed down 3.6 percent. India's benchmark Sensex fell as much as 5.2 percent.

In Tokyo, Japanese stocks tumbled as investors sold exporters after the dollar weakened further against the yen. The dollar was trading at 102.45 yen late afternoon in Tokyo, down from 103.09 yen late Thursday in New York.

Financials were the worst hit, with Mizuho Financial Group in Tokyo, National Australia Bank in Sydney, Hong Kong's HSBC Holdings and India's ICICI Bank pacing losses on worries related to the subprime mortgage markets. Shares of Mizuho lost 5.8% and Sumitomo Mitsui Financial Group sank 6.3% in Tokyo. In Sydney, shares of National Australia Bank slumped 5.4%, Kookmin Bank shares lost 1.6% in Seoul and DBS Group Holdings shed 1.9% in Singapore.

Indian stocks were hit the hardest in afternoon trading, as foreigners sold across the board. Hardest hit were shares of state-run banks such as Punjab National Bank and Union Bank of India because of worries that populist government measures before elections could affect earnings growth.

Investors were also bracing for a key U.S. jobs report later Friday. Economists on average were predicting a modest gain in February payrolls, though some expect a decline.

Elsewhere, the 30-company Philippine Stock Exchange Index plunged 2.8 percent to a six-week low Friday on renewed worries about the U.S. economy.

In mainland China, the Shanghai Composite Index was down a more moderate 1.4 percent.

Source: AP