GLOBAL MARKETS-Tokyo stocks gain, but market mood miserable
Reuters, 07.21.02, 11:02 PM ET
SINGAPORE, July 22 (Reuters) - Small gains for benchmark
Japanese stocks on Monday offered slim hopes that markets might
stabilise after last week's rout on Wall Street, but there were
scant other signs that the global equity slump was ending.
Tokyo's Nikkei average was up a third of a percent at the
midsession break, after an early tumble took it below 10,000
for the first time since February.
The Hong Kong, Australian and Singaporean markets were down
more than one percent, while losses topped two percent in
Taiwan and neared three percent in South Korea.
Analysts were expecting no reprieve for Wall Street, where
the Dow Jones Industrial Average has tumbled 14 percent in the
past two weeks.
"The mood is just horrible. There is one crisis after
another. Anything people can point to as a negative, they are
jumping all over it," said Mike Driscoll, a Bear Stearns
managing director of listed trading in the United States.
"Markets tend to go to extremes, and I am seeing a lot of
good companies that are being completely annihilated without
reason."
WorldCom Inc filed the largest U.S. bankruptcy as Asian
markets opened, but the long expected move at the scandal-hit
telecoms company appeared to have little market impact.
The downward equity spiral spilled over into the oil
markets, hitting prices as traders bet the stock slump would
hurt the U.S. economy and its demand for oil. NYMEX crude
futures fell 45 cents from Friday's U.S. close.
The dollar clawed back some ground, however, rising back
above 116 yen and moving below $1.01 against the euro.
Tokyo stocks reversed early losses in late morning trade as
investors focused on recent data suggesting a solid footing in
Japan's economy.
"When looking into the health of major Japanese companies
as their quarterly earnings season approaches, we shouldn't be
too pessimistic," said Hiroshi Sato, general manager at Cosmo
Securities' equities department.
The Nikkei rose 36.76 points or 0.36 percent to 10,239.12
in morning trade.
U.S. stocks plunged on Friday as a slew of corporate
scandals and dim prospects for earnings continued to take their
toll on investor confidence.
The Dow ended 4.64 percent lower at 8,019.26, after falling
as low as 7,966.72, its lowest since 1998.
Copyright 2002, Reuters News Service
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