Asia markets down, tracking Wall Street's losses
Posted: 15 October 2008 1002 hrs

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SINGAPORE: Asian shares were lower in early trade on Wednesday after two days of gains and following Wall Street's overnight decline on continuing concerns over the credit crisis despite a stepped-up rescue plan.

On Tuesday, Wall Street's Dow Jones index closed down 0.82 per cent, shedding early gains, as the US government pushed forward with a plan to inject up to US$250b in ailing banks.

European leaders have also unlocked more than one trillion euros in rescue funds for the troubled banking sector, following the lead of Britain.

Tracking Wall Street's losses, Tokyo's benchmark Nikkei-225 index dropped 91.55 points or 0.97 per cent to 9,356.02 after an hour-and-a-half of trading on Wednesday, a day after surging more than 14 per cent, its biggest ever gain.

Australian shares fell 0.9 per cent in morning trade. The benchmark S&P/ASX 200 lost 37 points to 4,298.2 by noon, while the broader All Ordinaries was down 38.9 points at 4,272.6.

The market had recovered slightly from falls in early trade which saw the key index down 1.4 per cent.

"The US was a bit off last night, so we're following on from that," said Nomura Australia equity markets strategist Eric Betts.

"We had a couple of good days and it's not surprising to see some profit-taking."

Australian share prices closed up 3.7 per cent on Tuesday after the government announced a 10.4-billion-dollar (7.25 billion US dollars) economic stimulus package to counter the financial crisis.

South Korean shares opened 1.52 per cent lower on Wednesday, with the KOSPI index down 20.76 points at 1,346.93 in the first 15 minutes of trading.

Steel and financial issues led the way following the previous day's surges. Top steelmaker POSCO fell nearly four per cent, while number two financial service provider Shinhan Financial Group was down 2.74 per cent.

Samsung Electronics and smaller rival LG Electronics also fell sharply.

Taiwan share prices opened 1.26 per cent lower, with the weighted index down 66.51 points at 5,225.05 in the first minute of trading.

Singapore shares were 1.62 per cent lower in early trade, with the blue-chip Straits Times Index falling 34.59 points to 2,093.72.

- CNA/ir