Asian stocks sink as US home loan woes spread

0 Comments | AFP, August, 2007

HONG KONG (AFP) — Asian stocks tumbled Wednesday as the fallout from growing problems in the US mortgage market snagged one of Australia's highest flying banks and stoked concerns over how much the debacle may ulitmately cost.

Dealers said Wall Street losses overnight sparked by trouble at another US company on its exposure to higher risk mortgage loans set the region up for a bad day just as it was recovering from last week's mayhem.

The tone was set in Sydney, down 3.3 percent, where market favourite Macquarie Bank said two high-yielding funds faced losses of up to 300 million dollars (258 million US) because of the problems in US sub-prime home loans.

Shares in Macquarie Bank, known for its deal making and massive executive pay-checks, shed 10.7 percent...