Hong Kong stocks crumbled under a barrage of selling Monday, with the benchmark Hang Seng Index plunging 12.7% to its lowest finish in more than four years as investors who bought shares on credit were forced to offload them in a falling market.
The session also saw benchmark indexes in Mumbai, the Philippines, and Thailand slump 10% or more, although India's Sensex pared losses by the end of the session on the back of better-than-expected earnings from Icici Bank and short-covering by investors in the afternoon.
"What we're seeing is capitulation selling on covering of the yen positions. That's creating an awful lot of uncertainty," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong. "The yen continues to strengthen as people are unwinding risk and there is nothing but pain there."
Meanwhile, Japanese shares slid further Monday, with the Nikkei 225 Average extending losses into a fourth session to end 6.4% down at 7,162.90. The benchmark was unable to hold gains despite moving into positive territory several times during the session, on a wave of selling in the afternoon. The close is its lowest in 26 years, according to Reuters.
[10/28 the next day] Asian markets rebounded strongly and were led by a 14.4% surge in Hong Kong's Hang Seng Index, which was its biggest advance in 11 years, as volatility in the market continues. Shares had started the day in negative territory, but bargain hunting took over in afternoon action following huge losses yesterday.
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