TOKYO–Asian stocks fell sharply Friday on investors’ concerns about the debt crisis in Dubai.

State-owned conglomerate Dubai World is seeking an extension on repaying some of its $60 billion in debts. Fears about a potential default, and its repercussions for Dubai’s international investors, pushed the Nikkei 225 down 3.2 percent to close at 9,081.52 while Hong Kong’s Hang Seng slid 4.8 percent to close at 21,134.50.

The dollar fell sharply against the yen in trade, hitting a 14-year low, and bouncing back to trade near 86.55. That factor weighed heavily on Tokyo’s stock market performance as a strong yen hampers Japan’s export-driven economy.

Australia’s All Ordinaries lost 2.76 percent to close at 4,597.20 while Singapore’s Straits Times lost 1.10 percent to end at 2,762.22.

Still, Dubai-related fears appeared to play out less drastically elsewhere in the world. Nearly all of the European stock indices finished in positive territory. The Dow Jones Industrial Average slid 1.48 percent to close at 10,309.92 during Friday’s half day of trade.

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