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Europe: Shares Fall In Initial Trading Following Asian Plunge

Hong Kong, 27 October 1997 (RFE/RL) - Hong Kong stocks suffered heavy losses today with the Hang Seng Index losing 5.80 percent by the close of trading. The plunge set off a chain reaction in other capital markets. In Tokyo, share prices closed at their lowest level in more than two years. Share prices also were falling today in initial trading in London and Frankfurt.

European traders will be closely watching the opening of trading on Wall Street to see how the U.S. market reacts. On Friday, the Dow Jones Industrial average fell 132 points on fears about the possible impact of Asian economic problems on U.S. companies.

The Australian dollar slumped to a near four-year low today. The price of gold in Sydney fell to about $309 U.S. per ounce, down from Friday's close of $323 per ounce.

Meanwhile, the Tallinn Stock Exchange was up about 3.6 percent after the first hour and 15 minutes of trading. Singapore, South Korea and Taiwan also enjoyed slight rebounds on light trading as investors awaited new signals from Hong Kong.