Today’s markets in the Asia-Pacific were spooked again. This time, the tumble was caused by fresh concerns about the US economy and their mortgage industry. The biggest worry for investors, according to analysts, is that the US mortgage market could cause the US market to slow down.
According to the BBC:
This latest round of selling has been sparked by concerns over the US sub-prime mortgage market. Sub-prime lenders, who target consumers with poor credit histories, have been hit by an increase in defaults and bad loans.
On the Bursa Malaysia, it was mostly red – a bloodied scene which was a near repeat of the 5 Mar 2007 purge. Only this time, the 33.63-point plunge was not as severe. But I don’t believe the market’s going to recover soon.
Elsewhere in the Asia-Pacific, Yahoo Finance painted this equally grim picture:
And as I write these lines, it has been a tumble on both the Footsie and the Dow, but the S&P500 and the Nasdaq are still in positive territory.