Markets fall worldwide
Japanese stocks dropped for a fifth day after U.S. consumer confidence fell and the yen rose against the dollar and euro. Shares also fell as the worldwide selloff in equity markets, triggered by a plunge in Chinese stocks, continued. U.S. stocks had the worst drop since January 2003 last week.

The Nikkei 225 Stock Average dropped 375.61, or 2.2 per cent, to 16,842.32 at the 11 a.m. break in Tokyo. Only four of the 225 stocks included in the average rose. The broader Topix index fell 38.50, or 2.2 per cent, to 1683.09, with all of its 33 industry groups declining. Both indexes headed for the lowest since Jan. 11.

Last week, the Nikkei tumbled 5.3 percent and the Topix index slid 5.1 percent while The Morgan Stanley Capital International Asia Pacific Index dropped 3.5 pe rcent.

In the U.S. the Standard & Poor's 500 Index lost 4.4 per cent to 1387.17 last week. The Dow Jones Industrial Average fell 4.2 per cent to 12,114.10 and the Nasdaq Composite Index plunged 5.9 per cent to 2368.
Back to News Review index page  

China denies capital gains tax plan
The sharp drop in Chinese markets was just a normal correction and not driven by fundamental economic concerns, said the head of the Shanghai Stock Exchange. The exchange dropped nearly 9 per cent on Tuesday, triggering a global sell-off in equities, commodities and oil on fears that a dented share market could slow China's economy. However, the general manager Zhu Congjiu said at the weekend: "I think the sharp drop was a normal correction by the stockmarket.

The Chinese tax authority also denied speculation that it was planning a capital gains tax on stockmarket earnings.

A State Administration of Taxation official said: "Recently, there's been speculation that the state is considering adjusting the tax-free policy for earnings from stock transactions. This is completely unfounded."

China stopped taxing gains from stock trade in 1994.
Back to News Review index page