Credit Fears Sink Asian Markets

Nikkei drops as subprime crisis rocks world
By Kevin Spak,  Newser Staff
Posted Aug 15, 2007 3:08 AM CDT
A currency trader takes in calls from clients for orders at a money brokerage in Tokyo as the U.S. dollar was trading at 117 yen level, down from 118.41 yen late Friday in New York Monday, Aug 6, 2007....   (Associated Press)
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(Newser) – Global credit turmoil rocked Asian markets today, pushing Japan’s Nikkei to 2007 lows, as US and Canadian firms struggled to meet payments and Wal-Mart and Swiss Bank UBS released disappointing forecasts. Through it all the Yen rose, as risk-averse investors turned to some safe havens in Japan, Reuters reports.

The MCIS index of Asia stocks excluding Japan was at its lowest level since May. Hardest hit were financial stocks, including Japan’s Mitsubishi UFJ, and exporters such as Sony and Toyota. The region’s emerging currencies, such as Indonesia's rupiah, also plummeted in the ongoing credit crunch, attributed to chaos in the US subprime mortgage market.