Asia dives on US subprime woe

[UpInArms]

http://money.cnn.com/2007/03/13/markets/bc.markets.global.reut/index.htm

SINGAPORE (Reuters) -- Asian share markets on Wednesday tracked heavy losses on Wall Street on fears about an intensifying crisis in U.S. mortgage lending, spooking investors nursing losses from a sharp sell-off two weeks ago.

Japanese stocks fell more than 2 percent, mirroring falls on Wall Street that were triggered by growing losses at subprime lending firms -- those operating at the riskier end of the mortgage market -- and weak U.S. retail sales.

The yen held gains, after soaring to near a three-month high versus the dollar as the latest jitters prompted investors to close out trades funded by cheap loans in the Japanese currency.

"Most people are just headless and panicking and don't know what they want to do," said Axel Merk, portfolio manager, at Merk Hard Currency Fund in Palo Alto, California.

Share markets in Australia and Korea fell more than 1.5 percent, while the 10-year Japanese government bond yield slid to a 2-1/2-month low after U.S. Treasuries rallied on concerns the troubled subprime mortgage sector could hurt the wider economy.

"The worries about the U.S. economy could become more serious," said Kim Hak-kyun, an analyst at Korea Investment and Securities. "We are still not done with this correction period."

...more...

here are the current market numbers:

        FTSE 100	-72.10	-1.16%	6,161.20
	XETRA-DAX	-91.50	-1.36%	6,623.99
	CAC 40  	-63.13	-1.15%	5,432.94
	HANG SENG	-509.93	-2.64%	18,823.21
	NIKKEI 225	-512.04	-2.98%	16,666.80

[CountAllVotes]

1. this is not good for anyone in the world

we are after all, a global economy whether any one cares to admit it or like it.

:kick:

[hogwyld]

4. But there's a big difference between us and the world

While the US has been hemorrhaging jobs the past 7 years, the rest of the world has been building up their manufacturing base, and more importantly, diversifying it's trading partners. We are now irrelevant thanks to *.

[formercia]

2. Gold is dropping like a rock

as speculators sell assets to cover margin calls. Bad sign.

[formercia]

3. Investors looking for liquidity

http://www.marketwatch.com/News/Story/Story.aspx?guid={95863C4C-03AF-42A9-BBF0-3F230A8E9A50}&siteid=mktw&dist=nbk

Gold falls, as global stock markets sell off
By Polya Lesova, MarketWatch
Last Update: 10:19 AM ET Mar 14, 2007

NEW YORK (MarketWatch) -- Gold futures fell Wednesday, tracking losses on Asian and European stock markets, as fears over increasing mortgage defaults escalated and investors sold commodities in pursuit of liquidity.
Gold for April delivery fell $4.20 to $645.20 an ounce on the New York Mercantile Exchange. On Tuesday, gold closed down 90 cents at $649.40 an ounce.
"Gold has come under renewed external pressures, as a string of negative news keeps global investors and their assets in search of a quick escape route," said Jon Nadler, an analyst at Kitco Bullion Dealers.

'Three weeks ago, it was the yen carry-trade going into full reverse that made the headlines and ostensibly dragged gold down with it. Now comes the crumbling U.S. sub-prime lending market and the huge shadow it is throwing on the shares of financials and homebuilders.'
— Jon Nadler, Kitco Bullion Dealers
James Moore, an analyst at TheBullionDesk.com, said continued risk reduction and the necessity to generate cash for margin calls will likely cause gold and other commodity markets to sell off further.

[Javaman]

5. Hows the dollar doing?

When does China, South Korea and Japan start calling in their T-bonds?