Asian Stock Markets Dive

US credit crisis has investors in Asian markets hedging their bets
By Jim O'Neill,  Newser User
Posted Mar 7, 2008 6:07 AM CST
A pedestrian looks at an an electronic stock market board in Tokyo, Friday, March 7, 2008. Japanese stocks tumbled Friday as investors sold exporter issues after the dollar weakened further against the...   (Associated Press)
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(Newser) – Japan’s Nikkei fell 3.3% and Australia’s S&P/ASX2000 dropped 3.2% as woeful US economic news—including rising foreclosures, worsening homeowner debt and impending credit defaults—sent Asian markets reeling, the Associated Press reports. Investors also worried that a key jobs report to be released this morning would show a rise in US unemployment, which would further hurt already depressed Asian exports.

Korea’s Stock Price Index fell 2%, the Hang Seng index was down 3.6%, China’s Shanghai Composite Index was off 1.4% and India's Sensex was off 5.2%. The dollar, meanwhile, continued to lose ground to the yen, trading at 102.45. "We are worried about the US market," said a Korean market analyst.