Asia : Another Ugly morning

Monday, October 27, 2008

Emerging market and commodity currencies continue to get battered this morning:

A$/USD  at .605 down 7%
KW/USD at 1442.0 down 2%

This morning's market:
^AORDAll Ordinaries3,768.30 1:11AM ETDown 63.30 (1.65%)
^SSECShanghai Composite1,738.11 2:27AM ETDown 101.51 (5.52%)
^HSIHang Seng11,492.19 3:00AM ETDown 1,126.19 (8.92%)
^BSESNBSE 308,163.25 3:00AM ETDown 537.82 (7.76%)
^JKSEJakarta Composite1,158.63 3:15AM ETDown 86.23 (6.93%)
^KLSEKLSE CompositeN/A 0.00 (0.00%)
^N225Nikkei 2257,162.90 2:00AM ETDown 486.18 (6.36%)
^NZ50NZSE 502,778.55 Oct 24Down 28.79 (1.03%)
^STIStraits Times1,600.28 Oct 24 0.00 (0.00%)
^KS11Seoul Composite946.45 2:02AM ETUp 7.70 (0.82%)
^TWIITaiwan Weighted4,366.87 1:46AM ETDown 212.75 (4.65%)

(courtsey Yahoo finance)

Capital is in full flight out of emerging markets.  The continued fall of Nikkei does not reflect confidence in the local Banking system.

The crisis has now engulfed the Gulf states.  Kuwait shut down trading and had to bail-out some banks.  The other states are also considering guarateeing bank deposits and other schemes.

For India which had started to look at Gulf States as a source of capital the near term outlook continues to deteriorate.  The market is in free fall. 

I continue to be on the sidelines..and although I may put 5% of capital to work at these levels, I will avoid real estate and may be interesting.

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