Reply #9: Asia mixed as AIG troubles keep subprime fallout in the spotlight UPDATE2

[ozymandius]

SINGAPORE, Feb. 12, 2008 (Thomson Financial delivered by Newstex) -- Stock markets across Asia were mixed Tuesday with Hong Kong ending a three-session losing streak as investors searched for bargains while Japan struggled as financials were hit by continued concerns about credit markets.
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The major US indexes reversed early losses to close higher overnight, after earlier falling on the disclosure from insurance giant AIG (NYSE:AIG) that it's having trouble putting a value on some of its credit derivatives, the latest sign of stress in the financial sector.

AIG said its portfolio lost 4.9 billion dollars in gross market value in the October to November period, more than four times the 1.5 billion-dollar loss that executives had estimated in December.

The company, a component of the Dow Jones Industrial Average, said its auditor,
PricewaterhouseCoopers, believes it has a 'material weakness ' in its internal controls over financial reporting and oversight although it disagrees with that assessment.

Fitch Ratings said it may cut the company's Triple-A rating. The stock closed down 12 percent at a five-year low.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22948089.htm