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America's New War: Global Markets Await America's Opening

Aired September 17, 2001 - 04:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, CNN CORRESPONDENT: Asia is wrapping up its trading day. Let's get all the market details. Andrew Stevens stands by in our Hong Kong bureau.

Andrew, with New York almost ready to go, how did Asia fare.

ANDREW STEVENS, CNN CORRESPONDENT: Well certainly no hints or no expectations here, Richard, of anything like a patriotic rally. Across the board it was another big sell off in Asia. Wall Street's reopening is weighing very much on the minds of investors here. Most people preparing for what they expect will be a big sell off. It's not just the financial markets either. As you were saying, the economy is weighing heavy here in Asia. The threat of a recession in the United States also putting extra pressure on markets here in Asia that have already been weak for months.

(BEGIN VIDEO CLIP)

PAUL CHANIN, SALOMON SMITH BARNEY: Yes, it's going to be the north Asian markets which are probably the most vulnerable because they are most dependent on U.S. trade. So it's markets which have high export dependencies into the U.S. which are probably going to take most of the direct brunt of it. But largely, this was the position forehand, we -- it's just -- it's just more so now those markets that had high-tech dependence, high-tech weightings that were potentially most vulnerable and I think the same goes through now.

(END VIDEO CLIP)

STEVENS: Well most of the markets have already closed here in Asia. Just a few markets still open for the last few minutes of trade. Let's start with the numbers in Tokyo. The Nikkei extending last week's 5 percent decline closing at a new 17-year low on Monday. The average falling another 5 percent closing just above that 9500 point level.

In Seoul, South Korea, the KOSPI was down 2.8 percent, its lowest close since December 1998. The tech heavy KOSDAQ down 8 percent as hopes there fade for any sort of recovery in the global IT sector. Australia's S&P ASX 200 down 4.7 percent. It's at a 17-month low as investors priced in a fall of as much as 10 percent in New York when trading there resumes.

Here in Hong Kong where trading has just finished, the Hang Seng index down more than 3 percent. Hong Kong's dominant carrier, Cathay Pacific Airways, not surprisingly, among the worst here to the blue chips in Hong Kong, down 10 percent on the day. Throughout Asia, in fact, other airline stocks also suffering sharp declines, including Korean Air and Japan Airlines.

Well, all major Asia stock markets did fall deeply ahead of New York's reopening, the airline and insurance stocks taking the biggest falls. And, Richard, they are the big movers so far today. And we'll, of course, be watching this Asia will be reacting to Wall Street's open in about 12 hours from now.

QUEST: Many thanks indeed, Andrew Stevens in Hong Kong.

Before I leave you, Michael and Colleen, perhaps in these moments of financial grimness a point of interest: Warren Buffett, one of America's largest and most profitable investors, says he won't be a seller when the market opens on Monday. In fact, Mr. Buffett says if prices fall far enough, he might even go into the market as a buyer. A note of optimism to leave you with, Michael, Colleen in Atlanta.

MICHAEL HOLMES, CNN ANCHOR: You'd think he'd have a rough idea, wouldn't you, Richard? Thanks.

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