Asian Stocks and Currencies Plummet --- Growing Violence In Indonesia Cited
Asian stock markets and currencies plunged as antigovernment demonstrations in the Indonesian capital grew violent for the second consecutive day, sparking fears of wider social unrest and increasing political tension in Indonesia.</br></br>The Indonesian stock market tumbled 6.6%, but stocks dropped 24.4% in U.S. dollar terms as the Indonesian rupiah nose-dived again. In Singapore, stocks fell 4.9%, Malaysia dropped 3.7%, and Hong Kong plummeted 3.8%.</br></br>Adding to investors' concerns about Asia, news that India had conducted more nuclear tests caused panic selling in Bombay, where the stock market dropped 4.1%. However, the Japanese stock market edged up 0.1%, while South Korea, which had plunged in recent days on concerns about its financial system, gained 1.3%.</br></br>"What we're seeing now are the social costs of last year's capital-markets crisis, especially in Indonesia," says Christopher Turner, managing director of independent financial consultancy I.D.E.A. in New York. "We're going into one of those periods where the markets get the bit between their teeth, and we're telling investors to take cover."</br></br>Nevertheless, a report in the Jakarta Post quoting Indonesia's President Suharto as saying he is willing to step down if his people no longer trust him helped send many markets higher as trading resumed in Asia Thursday. In Jakarta, the stock market was up 2.2% in early dealings; Malaysia was 1.2% higher and Hong Kong had gained 0.7%. Tokyo closed the morning session up 0.2%, while South Korea was up 2.8% at midday.