Asia markets hit by US rate talk, Samsung losses continue
ASIAN markets retreated yesterday on fears about an expected US interest rate rise this year, while the pound recovered after suffering a series of losses fuelled by worries over Britain’s EU exit.
Samsung Electronics suffered another bout of selling after announcing it would scrap the troubled flagship Galaxy Note 7 over an exploding battery crisis.
Shares staged a partial recovery to end around 10 percent down so far this week.
The regional retreat follows sharp falls on Wall Street, where investors were spooked by below-forecast earnings from aluminium-maker Alcoa.
Markets are keenly awaiting the release of minutes from the Federal Reserve September policy meeting, hoping for a clue about the bank’s plans for raising borrowing costs.
A string of recent upbeat data on the world’s top economy, and increasingly positive comments from Fed boss Janet Yellen, have fuelled speculation rates will rise before the end of the year.
Tokyo ended 1.1pc lower, while Hong Kong – where monetary policy is tied to that of the United States – was off 0.6pc. Shanghai slipped 0.2pc, Sydney was off 0.1pc and Singapore shed 1.1pc.
Bangkok dived as much as 6.8pc yesterday. The index has lost almost 7pc this week on worries about the health of King Bhumibol Adulyadej with many fearing economic instability after his death.
In Seoul, the KOSPI edged up 0.1pc as market heavyweight Samsung recovered from a 2pc early loss to end just 0.7pc lower.
Samsung yesterday slashed its third-quarter profit estimate by 33.3pc, citing fallout from the recall nightmare surrounding its scrapped Galaxy Note 7 smartphone.
Samsung filed a revised operating profit estimate of 5.2 trillion won (US$4.6 billion), compared to the 7.8 trillion won it announced just last week. The company also slashed its third-quarter sales estimate by 4pc to 47 trillion won from 49 trillion won earlier. –