Asian stocks tumble amid dollar slump, Dubai fears

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Asian stocks tumble amid dollar slump, Dubai fears

Asian stocks tumble after European rout amid Dubai debt fears; dollar slumps against yen

    * By Jeremiah Marquez, AP Business Writer
    * On 11:54 pm EST, Thursday November 26, 2009


HONG KONG (AP) -- Asian stock markets tumbled Friday as the dollar continued its slide against the Japanese yen and worries over losses from Dubai's debt problems unnerved investors worldwide.

AP - A money trader work at a dealing room the U.S. dollar rate against Japanese yen on the Foreign ...

It was the region's second day of losses and followed a rout in European markets. Oil, meanwhile, dived below $76 a barrel.

Investors cut back their riskier bets on equities and commodities after Dubai World, the emirate's main development engine, announced it was asking creditors to delay paying back its $60 billion debt. The news triggered fears of a massive default and a wave of heavy losses at banks and companies holding its debt.

Also dampening the mood was the slumping dollar, which weakened to a new 14-year low below 85 yen, dragging down shares of Japan's exporters like automaker Nissan and electronics maker Sharp.

"Investors were searching for shelter against the increased volatility and falls in risky assets," Dariusz Kowalczyk, chief investment strategist for SJS Markets in Hong Kong, said in a note. "Many chose to opt for the Japanese yen."

In Tokyo, the Nikkei 225 stock average fell 184.94 points, or 2 percent, to 9,198.30 and Hong Kong's main index retreated 712.04 points, or 3.2 percent, to 21,501.41.

Elsewhere, South Korea's Kospi benchmark lost 2.6 percent to 1,557.45 and Australia's index dropped 2.8 percent. China's main Shanghai stock measure was off 1.1 percent.

Uncertainty over the fallout from Dubai World's financial troubles sent European markets plummeting Thursday, with benchmarks in Britain, Germany and France all losing more than 3 percent.

U.S. markets were closed Thursday for the Thanksgiving holiday. But Friday was likely to be a rough session on Wall Street with futures pointing sharply lower. Dow futures were down 192, or 1.8 percent, to 10,250.

Oil prices retreated in Asian trade, with benchmark crude for January delivery falling $2.01 to $75.95 a barrel.

The dollar was lower at 86.13 yen from 86.54 yen after swooning as low as 84.81. The euro fell to $1.4931 from $1.5021.

http://finance.yahoo.com/news/Dubai-deb ... et=&ccode=

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Atlantis, The Palm
$1.5 billion Atlantis resort opens in Dubai
(0)
November 21, 2008, 11:57

The world may be tightening its belt but mere money woes have failed to thwart the star-studded grand opening of Dubai's Atlantis hotel on a palm-shaped island visible from space. The launch of the $1.5 billion mega resort on Thursday will featured red carpet appearances A-list stars from Oprah Winfrey to Charlize Theron, under an exploding sky.

While even Dubai is feeling the pain of the global financial crisis, and prices of real estate on the much-vaunted Palm Jumeirah are plummeting, Australian diva Kylie Minogue will open the glitzy Gulf tourism hub's ocean-themed hotel with her debut concert in the Middle East.

"It's not the perfect timing to open a $1.5 billion resort. On the other hand, we don't build something like this with the short-term in mind," said gaming and resort magnate Sol Kerzner, chairman and chief executive officer of Kerzner International.

"I believe Dubai will come to be one of the top destinations in the world."

Dubai, part of the United Arab Emirates, the world's fifth largest oil-exporter, kicked off a regional real estate boom when it opened the sector to private investment in 2002.

Boasting year-round sunshine and sandy beaches, Dubai, home to developments from the sail-shaped Burj al-Arab to the world's tallest tower, has attracted a growing number of tourists.

Atlantis Dubai, a pink maze of arches that looms large on the city's skyline, includes an aquarium boasting 65,000 sea creatures including sharks, eels and rays, a water park and a priceless sculpture made of 3,000 hand blown pieces of glass.

The hotel's signature suite, which features floor to ceiling views of Dubai, costs $25,000 a night, well beyond the reach of ordinary holidaymakers.

DIFFICULT YEAR AHEAD

But as the financial crisis begins to sap confidence in Dubai, prompting a stock market rout and a decline in property prices, even the well-heeled tourist may think twice next year.

"Tourism next year against the early part of this year will be more difficult," said Kerzner, who made his name building South Africa's Sun City and the Paradise Island resort in the Bahamas.

"I don't think there's any place that will be totally unaffected. Dubai, because it's well-connected to so many different markets, it's probably better placed than most other destinations," he told Reuters.

"Whilst we will feel the effects (of the global financial crisis) here, we will continue to operate very profitably and experience very reasonable occupancies."
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Kerzner said occupancy rates at the hotel have been at around 77 to 78 percent since it opened its doors on Sept 24, but internal documents obtained by Reuters forecast occupancy rates from around 19 to 80 percent between Nov 19 until Nov 25, peaking when the star guests arrive for the gala launch.

Kerzner told Reuters before the opening in September that his Bahamas-based company was looking to boost earnings from the Middle East and Asia and would hold back development plans in Las Vegas with MGM Mirage and Dubai World investment unit Istithmar amid worsening U.S. economic conditions.

He said at the time that the group also plans to expand the Dubai Atlantis resort with an estimated $1 billion investment to bring in its exclusive The Cove brand. A penthouse at The Cove in the Bahamas would cost $15,000 a night.

http://www.welt.de/english-news/article ... Dubai.html