Shares tumble across Asia on Wall Street woes

Susantha Ratnayake, Chairman, BOI formally presents the Certificate of Registration to Indra Silva, Chairman, Indra Hotels and Resorts Kandy (Pvt) Ltd

TOKYO, July 27, 2007 (AFP) – Shares prices tumbled across Asia on Friday as a sharp fall on Wall Street triggered new fears that woes in the US housing sector could affect the global economy, dealers said. Share prices were down by more than two percent in early trade in Tokyo, Hong Kong and other major regional bourses in the wake of similar heavy losses on Wall Street overnight.

Market players around Asia are carefully watching to see if the US troubles spread across the Pacific, said Kazuhiro Takahashi, head of the equity department at Daiwa Securities SMBC.

“They will spend one month or so to make sure the problem isn’t hurting the global economy, which is largely expected to be solid towards next year,” Takahashi said.

“It is unlikely that the markets will rise back sharply after such a big drop,” he said.

US shares plunged Thursday by more than 300 points, although they pared losses in late trade, with investors gripped by anxiety over the housing market.

The US Commerce Department said that sales of new homes dropped in June to the lowest level in three months, raising fears that trouble will spread more widely to other parts of the world’s largest economy.

Wall Street