Wobbly Indian shares fell to
their lowest in 2008 on Tuesday, rattled by concerns interest
rates may be raised to cool inflation, but pared some losses
toward the close on late buying by domestic funds. The 30-share main share index .BSESN ended down 1.17
percent at 14,889.25 points, its lowest close since mid-March,
with 21 components in the red. It hit a trough of 14,645.31, below the previous 2008 low
of 14,677.24 in March, and the lowest since Aug. 29, 2007. Traders said domestic funds scooped up bargains, helping
the market to pull off the lows. "They have started cherry picking long-term outperformers,"
said Amitabh Chakraborty, president of equities at Religare
Securities. Software stocks such as bellwether Infosys Technology Ltd
(INFY.BO: Quote, Profile, Research) that get more than half their revenue from the United
States led the losses amid worries the U.S. economy was heading
for stagflation. Financials like ICICI Bank (ICBK.BO: Quote, Profile, Research), India's No. 2 lender
fell 2.5 percent to 731.60 rupees, its lowest since October, on
worries higher interest rates would slow down loans growth. Smaller rival HDFC Bank (HDBK.BO: Quote, Profile, Research) dropped 4.5 percent to
1,130.95 rupees, the lowest close since August. The sector
index fell 2.4 percent. Traders said the outlook remains shaky with foreign
portfolio investors dumping Indian stocks, which have fallen
26.6 percent this year and making them among the worst
performers in Asia. Data on Tuesday showed foreign funds pulled out $332.6
million the previous day, taking the total outflow in 2008 to
more than $5 billion. "The market is likely to remain subdued in the coming days,
as global equity market sentiment remains weak due to high
crude oil prices," local brokerage Anand Rathi Securities said. Top listed firm Reliance Industries (RELI.BO: Quote, Profile, Research) rose 1.7
percent to 2,199.40 rupees, ahead of its annual shareholders
meet on Thursday where it is expected to announce a slew of
business initiatives, traders said. Infosys fell 2.9 percent to 1,849.10 rupees, its lowest
close in more than two weeks, while leader Tata Consultancy
Services (TCS.BO: Quote, Profile, Research) lost 3.9 percent to 880.05 rupees and smaller
rival Satyam Computer Services (SATY.BO: Quote, Profile, Research) shed 2.8 percent to
477.90 rupees. In the broader market, losers overwhelmed gainers 1,663 to
958 on volume of 272.5 million shares. The 50-share NSE index fell 1.14 percent to
4,469.80 points. Elsewhere in the region, Karachi's 100-Share index
shed 0.23 percent to 12,878.04 and Colombo's All-Share index
.CSE eased 0.14 percent lower at 2,489.25. STOCKS THAT MOVED * Spice Communications (SPCM.BO: Quote, Profile, Research) rose 4.1 percent to 55.40
rupees after the Economic Times reported that Idea Cellular
(IDEA.BO: Quote, Profile, Research) was set to buy the founders' stake of 40.8 percent in
Spice for 77-78 rupees a share. * Auto parts maker L G Balakrishnan & Bros (LGB.BO: Quote, Profile, Research) jumped
10.9 percent to 16.30 rupees after British industrial chain
maker Renold Plc (RNO.L: Quote, Profile, Research) said it plans to buy a 75 percent
stake in the Indian firm's industrial chains division.
[ID:nBOM129869]. * Shares in pharmaceutical firms Ranbaxy (RANB.BO: Quote, Profile, Research),
Aurobindo Pharma (ARBN.BO: Quote, Profile, Research), Divi's Laboratories (DIVI.BO: Quote, Profile, Research) and
Cipla (CIPL.BO: Quote, Profile, Research) rose between 3.9 percent and 6.5 percent as
they were seen as defensive buys, traders said. MAIN TOP 3 BY VOLUME* IFCI Ltd (IFCI.BO: Quote, Profile, Research) on 18.5 million shares.* Reliance Petroleum (RPET.BO: Quote, Profile, Research)> on 13.6 million shares* Ispat Industries (ISPT.BO: Quote, Profile, Research) 13.5 million shares FACTORS TO WATCH
* Indian rupee off early lows on cbank move
[INR/]
* Indian bond yields steady as inflation weighs
[IN/]
* FOREX-Dollar jumps,Bernanke stokes Fed rate hike
outlook[FRX/]
* Oil rebounds as supply worry offsets demand falls
[O/R]
* GLOBAL MARKETS-Bonds slide, dollar rises on Bernanke warning
[MARKETS/AS]
* US STOCKS-U.S. Futures drop after Bernanke inflation warning
[.N]
* For closing rates of Indian ADRs
Tuesday, June 10, 2008
Japan seeks answers on knife attack
What provoked a man who was a "good student" at junior school, and bright enough to get into one of the most competitive high schools in his area, to commit an apparently random act of mass murder?
Did Japanese society play a part in Kato's alleged actions?
Tomohiro Kato, arrested after his Sunday lunchtime stabbing spree that left seven dead and 10 injured, has been handed over to prosecutors and is likely to face the death penalty.
Perhaps that is what he wanted.
The police say that he went to Tokyo's Akihabara shopping district to kill people, saying he was tired of life.
In the Japanese newspapers the pundits all have their theories as to what prompted the attack.
He is "a sociopath who blames society for his unstable life as a temporary worker", according to a criminologist quoted in one article, adding that "many young people are selfish and immature and such violence is a manifestation of this".
This kind of response could be characterised as "it was a problem with him, not something we did wrong". But is that really good enough as an explanation, or was he failed in some way by Japanese society?
'Falling through the cracks'
Professor Jeff Kingston, a Japan watcher from Temple University in Tokyo argues that recent cases of deranged young men committing random acts of violence here suggest that the public health system in Japan does not provide adequate support for people with mental illness.
"There is a social stigma attached to mental illness," he says, "and in addition to that doctors are reluctant to refer patients for psychiatric counselling, so this is probably a far too common case of an individual falling through the cracks in the system."
Kato was on a temporary contract. Police say they now believe he was unhappy at work and that provoked his murderous assault.
He threw a tantrum in front of colleagues at the factory where he was working on a temporary contract a few days before the attack because his work clothes went missing.
He thought this meant he was going to be laid off.
Alienation
We know that Kato gave numerous indications that he was troubled, posting messages online
But those who worked with him report that in general there was nothing extraordinary about him.
As a "freeter" - as temporary workers are known here - he would not have had access to the kind of counselling or support services that might have been available to a full-time employee.
He probably would not even have worked with the same people on a regular basis, so it was less likely they would have noticed there was anything wrong.
We know that Kato gave numerous indications that he was troubled, posting messages online on bulletin boards expressing rancour, rage and alienation. But these were anonymous posts.
Professor Hirokazu Hasegawa, a clinical psychologist from Tokai Gakuin University says this decision to express his pent-up frustration on the internet suggests that perhaps he had trouble talking to people and communicating what he truly felt.
Advertisement
Police struggle to restrain media from surrounding the car carrying Tomohiro Kato, suspected of killing seven people
'Pent-up suffering'
He agrees that the system here is failing those who need help for mental illness.
"There are not enough qualified specialists available," he says.
"The chance of somebody with a serious problem actually getting treated by a qualified and perhaps more importantly experienced specialist is very small here. It's hard to get real help."
Professor Hasegawa also criticises what he calls the "pent-up suffering of Japan".
He argues that Japanese parents treat their children differently from parents in countries like the United States or the United Kingdom.
Conformity
In Japan parents tend to regard their children as possessions, as part of them, and as a result often they don't see them as individuals or respect their rights as individuals.
Children are expected to follow closely what their parents think and say and to try to behave or to conform to what their parents see as appropriate behaviour.
The attack has stirred intense public speculation
Negative feelings such as anger or frustration build up because it is much harder to find a way to express them.
Inevitably the politicians are now being pressed for their views on what if anything can be done to prevent such crimes.
Japan's Education Minister, Kisaburo Tokai, says he is considering holding talks with "experts in brain science about the state of children in Japan."
At the same time, inevitably perhaps, a debate is under way about whether Japan is becoming a more violent society.
Tokyo 'safe'
The Asahi newspaper reported that there have been 67 random killings in Japan in the last 10 years, on average between three and 10 each year. Last year there were eight. The year before there were four.
So far this year, according to the newspaper's definition there have been five attacks - three major killing sprees and two where an individual was targeted, apparently at random.
So this year is on target to be at the higher end of the scale, but not unusually so.
The newspaper claims that in the past drugs were often blamed for prompting random attacks.
These days, it says the motive is more likely to be a grudge against society. It is hard to be certain whether this is the case or not.
However, as Professor Kingston points out, Japan should be grateful for its strict gun control laws.
"If Kato had had an automatic assault rifle the mayhem in Akihabara would have been far more devastating."
And the fact remains that by most measures, Japan is still much safer than many other countries in the world.
"I would rather take my chances on the streets of Tokyo than London, New York or Rio de Janeiro anyway," the professor says.
Did Japanese society play a part in Kato's alleged actions?
Tomohiro Kato, arrested after his Sunday lunchtime stabbing spree that left seven dead and 10 injured, has been handed over to prosecutors and is likely to face the death penalty.
Perhaps that is what he wanted.
The police say that he went to Tokyo's Akihabara shopping district to kill people, saying he was tired of life.
In the Japanese newspapers the pundits all have their theories as to what prompted the attack.
He is "a sociopath who blames society for his unstable life as a temporary worker", according to a criminologist quoted in one article, adding that "many young people are selfish and immature and such violence is a manifestation of this".
This kind of response could be characterised as "it was a problem with him, not something we did wrong". But is that really good enough as an explanation, or was he failed in some way by Japanese society?
'Falling through the cracks'
Professor Jeff Kingston, a Japan watcher from Temple University in Tokyo argues that recent cases of deranged young men committing random acts of violence here suggest that the public health system in Japan does not provide adequate support for people with mental illness.
"There is a social stigma attached to mental illness," he says, "and in addition to that doctors are reluctant to refer patients for psychiatric counselling, so this is probably a far too common case of an individual falling through the cracks in the system."
Kato was on a temporary contract. Police say they now believe he was unhappy at work and that provoked his murderous assault.
He threw a tantrum in front of colleagues at the factory where he was working on a temporary contract a few days before the attack because his work clothes went missing.
He thought this meant he was going to be laid off.
Alienation
We know that Kato gave numerous indications that he was troubled, posting messages online
But those who worked with him report that in general there was nothing extraordinary about him.
As a "freeter" - as temporary workers are known here - he would not have had access to the kind of counselling or support services that might have been available to a full-time employee.
He probably would not even have worked with the same people on a regular basis, so it was less likely they would have noticed there was anything wrong.
We know that Kato gave numerous indications that he was troubled, posting messages online on bulletin boards expressing rancour, rage and alienation. But these were anonymous posts.
Professor Hirokazu Hasegawa, a clinical psychologist from Tokai Gakuin University says this decision to express his pent-up frustration on the internet suggests that perhaps he had trouble talking to people and communicating what he truly felt.
Advertisement
Police struggle to restrain media from surrounding the car carrying Tomohiro Kato, suspected of killing seven people
'Pent-up suffering'
He agrees that the system here is failing those who need help for mental illness.
"There are not enough qualified specialists available," he says.
"The chance of somebody with a serious problem actually getting treated by a qualified and perhaps more importantly experienced specialist is very small here. It's hard to get real help."
Professor Hasegawa also criticises what he calls the "pent-up suffering of Japan".
He argues that Japanese parents treat their children differently from parents in countries like the United States or the United Kingdom.
Conformity
In Japan parents tend to regard their children as possessions, as part of them, and as a result often they don't see them as individuals or respect their rights as individuals.
Children are expected to follow closely what their parents think and say and to try to behave or to conform to what their parents see as appropriate behaviour.
The attack has stirred intense public speculation
Negative feelings such as anger or frustration build up because it is much harder to find a way to express them.
Inevitably the politicians are now being pressed for their views on what if anything can be done to prevent such crimes.
Japan's Education Minister, Kisaburo Tokai, says he is considering holding talks with "experts in brain science about the state of children in Japan."
At the same time, inevitably perhaps, a debate is under way about whether Japan is becoming a more violent society.
Tokyo 'safe'
The Asahi newspaper reported that there have been 67 random killings in Japan in the last 10 years, on average between three and 10 each year. Last year there were eight. The year before there were four.
So far this year, according to the newspaper's definition there have been five attacks - three major killing sprees and two where an individual was targeted, apparently at random.
So this year is on target to be at the higher end of the scale, but not unusually so.
The newspaper claims that in the past drugs were often blamed for prompting random attacks.
These days, it says the motive is more likely to be a grudge against society. It is hard to be certain whether this is the case or not.
However, as Professor Kingston points out, Japan should be grateful for its strict gun control laws.
"If Kato had had an automatic assault rifle the mayhem in Akihabara would have been far more devastating."
And the fact remains that by most measures, Japan is still much safer than many other countries in the world.
"I would rather take my chances on the streets of Tokyo than London, New York or Rio de Janeiro anyway," the professor says.
Quake lake water surges through cities
huge volume of water Tuesday surged from a lake created by China's massive earthquake, safely plunging downstream through an area where hundreds of thousands had been braced for disaster, officials said.
An engineer prepares to fire a missile to blast boulders in a man-made spillways in Tangjiashan, China.
more photos » The mammoth effort to drain Tangjiashan lake -- where floodwaters behind a landslide had threatened to burst through the wall of rubble to submerge low-lying towns -- was declared a success by officials who said the crisis was over.
But with the risk of man-made drainage channels collapsing under pressure from the water charging through them, there was still a danger of sudden tidal waves.
The official Xinhua news agency reported late Tuesday that a crest of flood water, carrying with it trees, TVs, refrigerators and the bodies of earthquake victims, had surged safely past the city of Mianyang in southwestern Sichuan province.
Up to 250,000 people had already been evacuated from the area ahead of the deluge, but 400,000 remained in the city, where minor flooding and damage to buildings was reported as the torrent surged past.
The flood waters were released earlier by engineers and troops who had toiled for days using mechanical diggers, dynamite and anti-tank weapons to blast drainage channels through the landslide dam. Watch soldiers blast away at lake »
Don't Miss
Tears at quake zone panda funeral
Special report: China earthquake
iReport.com: Send photos, videos of relief effort
Sichuan province's top official, Liu Qibao, claimed the effort a "decisive victory," Xinhua said, according to The Associated Press.
It was feared that a breach in the dam could threaten areas downstream that are home to more than 1.3 million people.
Meanwhile, officials found the crash site of a Chinese military helicopter that went down late last month in the mountains of southwestern China, killing 19 people, state-run media reported.
The transport was carrying a crew of five along with 14 injured residents from Sichuan province on May 31 when it crashed in "fog and turbulence" near Yingxiu in Wenchuan County, a military source told the Xinhua news agency.
The flight was a part of rescue efforts following the May 12 earthquake that devastated much of the region.
More than 69,000 people died in the May 12 quake, but more than 17,000 remain missing, according to the official government toll.
An engineer prepares to fire a missile to blast boulders in a man-made spillways in Tangjiashan, China.
more photos » The mammoth effort to drain Tangjiashan lake -- where floodwaters behind a landslide had threatened to burst through the wall of rubble to submerge low-lying towns -- was declared a success by officials who said the crisis was over.
But with the risk of man-made drainage channels collapsing under pressure from the water charging through them, there was still a danger of sudden tidal waves.
The official Xinhua news agency reported late Tuesday that a crest of flood water, carrying with it trees, TVs, refrigerators and the bodies of earthquake victims, had surged safely past the city of Mianyang in southwestern Sichuan province.
Up to 250,000 people had already been evacuated from the area ahead of the deluge, but 400,000 remained in the city, where minor flooding and damage to buildings was reported as the torrent surged past.
The flood waters were released earlier by engineers and troops who had toiled for days using mechanical diggers, dynamite and anti-tank weapons to blast drainage channels through the landslide dam. Watch soldiers blast away at lake »
Don't Miss
Tears at quake zone panda funeral
Special report: China earthquake
iReport.com: Send photos, videos of relief effort
Sichuan province's top official, Liu Qibao, claimed the effort a "decisive victory," Xinhua said, according to The Associated Press.
It was feared that a breach in the dam could threaten areas downstream that are home to more than 1.3 million people.
Meanwhile, officials found the crash site of a Chinese military helicopter that went down late last month in the mountains of southwestern China, killing 19 people, state-run media reported.
The transport was carrying a crew of five along with 14 injured residents from Sichuan province on May 31 when it crashed in "fog and turbulence" near Yingxiu in Wenchuan County, a military source told the Xinhua news agency.
The flight was a part of rescue efforts following the May 12 earthquake that devastated much of the region.
More than 69,000 people died in the May 12 quake, but more than 17,000 remain missing, according to the official government toll.
south korea cabinet offers to resign
South Korea's entire cabinet today offered to resign as President Lee Myung-bak desperately sought to calm outrage over his decision to lift restrictions on US beef imports.
"The prime minister offered the cabinet's resignation at the regular meeting this morning (with Lee)," a spokeswoman at the prime minister's office said, in what was seen as a response to unrelenting anti-government protests for the past month.
The street demonstrations, including candlelit vigils, against the government began when Lee agreed to lift restrictions on US beef imports to clear the way for congressional approval for a bilateral free trade treaty.
But the decision backfired spectacularly as critics accused Lee of putting relations with the US ahead of public concerns over BSE, or mad cow disease. Despite the scientific evidence, the South Korean public fears the import of US beef over 30 months old increases the risk of catching BSE.
The beef crisis has led to a slump in the polls for Lee, the former boss of Hyundai, who won a landslide victory in December and took office in February. Latest opinion polls show his popularity has plummeted to just under 20%.
What started as fears over BSE has spread to a broad campaign against the government over a host of grievances against Lee, who came into office promising more than he could deliver, including 7% economic growth.
In the latest protests, organisers say up to one million people were expected to turn out around the country - at least a third of them in the capital. Police have issued their highest alert ahead of the protests, with 100,000 people expected to march in Seoul.
"President Lee hasn't listened to the voices of his people. We still don't have a genuine democracy in our country," Jang Dae-hyun, a spokesman for a civic group that has organised protests, told the Associated Press.
Truck drivers, following the lead of unions in countries across Asia and Europe, voted yesterday to go on strike over rising fuel prices. They ignored the government's $10.2bn (£5.2bn) financial aid package announced a day before, designed partly to cushion the impact of soaring energy costs.
The country's main KCTU trade union and four car unions were voting today whether to back a call for a general strike next week against government policies. The mass protests have derailed plans, for now, for attempts at economic reform by the conservative government, including tax cuts, mass privatisation of major state-run firms and banks and efforts to open the country further to foreign investment.
The new parliament has been unable to sit because the opposition has boycotted its opening. Lee's government said it has asked the US not to export beef from older cattle considered at greater risk of mad cow disease but rejected calls for a complete renegotiation of the accord, citing possible diplomatic and trade disputes with the US.
Lee warned that surging prices for resources and slowing growth meant the economy was entering its roughest patch in a decade.
"Our economy is faced with a serious difficulty, with prices rising and the economy gradually slowing," he said in a speech to mark the 21st anniversary of pro-democracy protests that helped end years of autocratic rule
"The prime minister offered the cabinet's resignation at the regular meeting this morning (with Lee)," a spokeswoman at the prime minister's office said, in what was seen as a response to unrelenting anti-government protests for the past month.
The street demonstrations, including candlelit vigils, against the government began when Lee agreed to lift restrictions on US beef imports to clear the way for congressional approval for a bilateral free trade treaty.
But the decision backfired spectacularly as critics accused Lee of putting relations with the US ahead of public concerns over BSE, or mad cow disease. Despite the scientific evidence, the South Korean public fears the import of US beef over 30 months old increases the risk of catching BSE.
The beef crisis has led to a slump in the polls for Lee, the former boss of Hyundai, who won a landslide victory in December and took office in February. Latest opinion polls show his popularity has plummeted to just under 20%.
What started as fears over BSE has spread to a broad campaign against the government over a host of grievances against Lee, who came into office promising more than he could deliver, including 7% economic growth.
In the latest protests, organisers say up to one million people were expected to turn out around the country - at least a third of them in the capital. Police have issued their highest alert ahead of the protests, with 100,000 people expected to march in Seoul.
"President Lee hasn't listened to the voices of his people. We still don't have a genuine democracy in our country," Jang Dae-hyun, a spokesman for a civic group that has organised protests, told the Associated Press.
Truck drivers, following the lead of unions in countries across Asia and Europe, voted yesterday to go on strike over rising fuel prices. They ignored the government's $10.2bn (£5.2bn) financial aid package announced a day before, designed partly to cushion the impact of soaring energy costs.
The country's main KCTU trade union and four car unions were voting today whether to back a call for a general strike next week against government policies. The mass protests have derailed plans, for now, for attempts at economic reform by the conservative government, including tax cuts, mass privatisation of major state-run firms and banks and efforts to open the country further to foreign investment.
The new parliament has been unable to sit because the opposition has boycotted its opening. Lee's government said it has asked the US not to export beef from older cattle considered at greater risk of mad cow disease but rejected calls for a complete renegotiation of the accord, citing possible diplomatic and trade disputes with the US.
Lee warned that surging prices for resources and slowing growth meant the economy was entering its roughest patch in a decade.
"Our economy is faced with a serious difficulty, with prices rising and the economy gradually slowing," he said in a speech to mark the 21st anniversary of pro-democracy protests that helped end years of autocratic rule
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