[NYTr] Aussie & Asian shares close sharply lower

[All the News That Doesn't Fit]

Dave Muller's Southnews - Aug 1, 2007


Aussie & Asian shares close sharply lower

Australian shares ended sharply lower Wednesday following Wall Street's 
tumble overnight on mounting nervousness over the US subprime market, 
with the indexes here seeing their biggest one-day fall in percentage 
terms since the aftermath of the September 2001 terror attacks in the
US.

Macquarie Bank Ltd, Australia's leading investment bank, plunged after 
it said two of its funds face losses of up to 25 percent, or about 300 
million Australian dollars, in the fallout from the crisis in the US 
subprime mortgage market, in which loans are made to customers with 
questionable credit ratings.

Major banking and resource stocks also dropped on fears of a prolonged 
sell-off in US equities than previously thought.

The S&P/ASX 200 closed down 203.0 points or 3.3 percent, at the day's 
low of 5,941.2. The All Ordinaries index dropped 198.1 points or 3.2 
percent to 5,989.4.

Volume traded reached 2.3 billion shares worth 8.4 billion Australian 
dollars.

                        ***

AFP - Aug 1, 2007

Hong Kong shares fall sharply on US market, housing worries

HONG KONG (AFP) - - Hong Kong share prices finished the Wednesday 
morning session 3.31 percent down, amid fresh worries over US housing 
sector problems and volatility in global equity markets, dealers said.

They said selling was spread across the board, with HSBC and Hang Seng 
Bank among the stocks hit after leading a rally Tuesday on 
forecast-beating first-half results.

The Hang Seng Index ended the morning down 767.10 points at 22,417.84, 
after moving in the range of 22,413.78 and 23,025.14. Turnover was 68.4 
billion Hong Kong dollars (8.74 billion US dollars).

"Credit and sub-prime mortgage market worries and record-high oil
prices sent US stocks tumbling, dragging down regional (bourses)
including Hong Kong," said Ben Kwong, research head at KGI Asia.

Jackson Wong, investment manager at Tanrich Securities, said Hong Kong 
shares moved in line with falls on regional and US markets, with 
investors locking in profits after recent sharp gains.

"HSBC and Hang Seng Bank which led Tuesday's rally were among stocks 
worst hit by profit-taking," he noted.

"China Mobile's decline and losses in many China stocks following drops 
on mainland markets also pushed down the index."

HSBC lost 2.30 dollars or 1.59 percent at 142.0, after rising 2.12 
percent Tuesday.