Filed under: Economy , Investing Shares in Asia soared Monday, with Hong Kong’s Hang Seng Index surging 3.3% to close at 21,822. China’s Shanghai Composite Index climbed 3.2% to 3,195 and in Japan, the Nikkei Index gained 2.9%, ending the day at 9,346. Even as shares in Dubai and Abu Dhabi suffered their steepest drop in more than a year, Asian banks recouped some of Friday’s massive losses after assessing their actual exposure to floundering Dubai World. In Hong Kong, HSBC ( HBC ), the most heavily weighted stock on the exchange, rallied 4.3% and Standard Chartered ( SCBFF ) gained 4.2%. A pledge by the Chinese authorities to continue financial stimulus measures sent shares in China- based banks upwards. Hong Kong-listed shares of Bank of China ( BACHY ) added 5.8% and shares in Industrial & Commercial Bank of China ( IDCBY ) rose 4.6%. Continue reading Asian Banks soar in Dubai aftermath, Buffett’s BYD and other Chinese car companies post massive gains Asian Banks soar in Dubai aftermath, Buffett’s BYD and other Chinese car companies post massive gains originally appeared on DailyFinance on Mon, 30 Nov 2009 07:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Asian Banks soar in Dubai aftermath, Buffett’s BYD and other Chinese car companies post massive gains

Filed under: Economy , Investing Asian stocks plunged Friday with Hong Kong’s Hang Seng Index plummeting 4.8% to close at 21,135. In China the Shanghai Composite Index lost 2.4%, ending the day at 3,096 and in Japan, the Nikkei Index fell 3.2% to 9,082. News that Dubai’s government-owned investment company, Dubai World, was asking to delay paying back $60 billion in debt, triggered a wave of heavy losses for banks and other companies with investments in the region. Dubai has been on a massive spending spree, investing in construction and development that has transformed this desert locale into a financial and tourism center. Recent additions to the landscape include the gravity-defying Burj Dubai, intended to be the tallest building in world and slated to be completed this January, and a mall with an indoor ski resort. Continue reading Dubai trouble rattles Asian markets, building and banking shares plunge Dubai trouble rattles Asian markets, building and banking shares plunge originally appeared on DailyFinance on Fri, 27 Nov 2009 07:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Dubai trouble rattles Asian markets, building and banking shares plunge

Filed under: JP Morgan Chase JP Morgan ( JPM ), RBS ( RBS ), Credit Suisse ( CS ) and several other large firms with financial research arms have put out educated guesses as to which banks are most exposed to Dubai debt. Coming up with these numbers has turned out to be an inexact science. And, Dubai may make good on its payments, so the concern about large bank write-offs could turn out to be academic. Credit Suisse reports that European banks may have as much as $40 billion in exposure in Dubai. RBS says that getting correct numbers on Dubai is not possible but that European banks have almost $84 billion in exposure in the United Arab Emirates. According to The Wall Street Journal, RBS derived its data by “using data compiled by the Bank for International Settlements. U.K. banks have by far the largest exposure at $49.5 billion, while French and German banks top the euro-zone list with $11.3 billion and $10.2 billion respectively.” Continue reading European banks have large exposure to Dubai debt European banks have large exposure to Dubai debt originally appeared on DailyFinance on Fri, 27 Nov 2009 09:40:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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European banks have large exposure to Dubai debt

Filed under: Economy U.S. stocks followed the rest of the world lower in a short Friday session after the state investment company of Dubai shocked global debt and equity markets on Thursday by asking for more time to make a loan payment, essentially admitting that it’s currently insolvent. As banks across Europe, the U.S. and the Gulf region scrambled to assess their exposure to the Dubai debt crisis, money whooshed out of stocks in a global flight to safety that pushed up of the value of the U.S. dollar and U.S. Treasurys. The blue-chip Dow Jones Industrial Average ( $INDU ) lost 154.5, or 1.48%, to close at 10,309.9, while the broader S&P 500 ( $INX ) retreated 19.1, or 1.72%, to finish at 1091.5. The tech-heavy Nasdaq Composite ( $COMPX ) shed 37.6, or 1.73%, to close at 2138.4. U.S. markets were closed on Thursday for the Thanksgiving holiday and, as usual, experienced low volume Friday before an early 1 p.m. Eastern close, which likely helped dampen the effects of Thursday’s global sell-off. Continue reading The Dow dives more than 150 points on Dubai’s debt crisis The Dow dives more than 150 points on Dubai’s debt crisis originally appeared on DailyFinance on Fri, 27 Nov 2009 13:10:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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The Dow dives more than 150 points on Dubai’s debt crisis