Dow plummets 220 points

Worries over the Asian economic crisis push major indexes down 3 percent

Star-Bulletin news services

NEW YORK - Stocks plunged today, with the Dow industrials falling as much as 275 points as investors worried that the continuing Asian economic crisis would eventually hurt economies around the world.

The Dow Jones industrial average finished with a loss of 222.20 points, or 2.85 percent, to 7,580.42 after a modest recovery in the final half hour. Trading was heavy in bringing the Dow's loss so far this year to 328 points.

It was the Dow's worst day since its 554-point drop on Oct. 27 and its fourth-worst point drop ever.

Broad-market indexes plunged about 3 percent, with the Nasdaq composite, dominated by technology shares believed most vulnerable to the trouble overseas, posting its second worst one-day point loss.

The Standard & Poor's 500-stock list fell 28.35 to 927.69, and the NYSE composite index fell 14.17 to 487.47. The Nasdaq composite index fell 52.32 to 1,503.22, and the American Stock Exchange composite index fell 17.32 to 650.24. The Russell 2000 index of smaller companies fell 12.76 to 412.95.

Declining issues outnumbered gainers by a 9-to-2 margin on the New York Stock Exchange, with 2,540 down, 552 up and 92 unchanged. NYSE volume totaled 745.36 million shares vs. 651.24 million yesterday.

Meanwhile, U.S. bonds rose today, driving yields to record lows. The benchmark 30-year Treasury bond rose 26/32, or $8.13 per $1,000 bond, to 106 3/32. Its yield fell 6 basis points to 5.69 percent.

Stocks fell after another decline in financial markets across Asia.

Investors fear that continued problems in Asia will eventually hurt global economies and erode corporate profits.

"Given what's happened in Asia and Europe, I don't see anything but down as this crisis in Asia seems to be picking up steam," said Hildegard Zagorski, an analyst at Prudential Securities.

A key stock market index in the Philippines tumbled more than 8 percent today to its lowest level in almost five years, while prices in Singapore, Malaysia, Indonesia, Hong Kong, Thailand, and South Korea also finished lower. While Indonesian markets recovered today, there were still worries about the nation's outlook.

"The problems in Asia are outweighing some of the positives that should boost stocks, like interest rates declining and deflation" in the United States, said Brian Belski, analyst at Dougherty Summit Securities in Minneapolis.

On other foreign markets, Tokyo's Nikkei stock average fell just 0.2 percent, Frankfurt's DAX index fell 2.5 percent and London's FT-SE 100 fell 1.9 percent.