Asian markets fall on new Europe fears

View previous topic View next topic Go down

GMT - 3 Hours Asian markets fall on new Europe fears

Post by yaad on Wed Sep 21, 2011 9:34 pm

[You must be registered and logged in to see this image.]




HONG KONG: Asian stock markets fell on Monday after European finance heads failed to agree a plan to solve the region's debt woes, while they also put off a decision on releasing rescue funds to Greece.

The keenly-watched meeting in Poland on Friday highlighted divisions between Europe and the United States over the best way forward for the region, raising fears of another global financial crisis.

Hong Kong fell 2.05 percent, Sydney was 1.81 percent down, Seoul shed 1.03 percent and Shanghai was 1.31 percent lower.

Tokyo was closed for a public holiday.

Eurozone finance ministers said Friday they would delay until October a decision on eight billion euros ($11 billion) of bailout cash for Greece, which it cannot tap until has persuaded auditors it is on track to cut its deficit.

The announcement came despite the United States warning of "catastrophic risks" to financial markets if the EU does not quickly contain the crisis, revealing the divisions across the Atlantic over the best way forward.

Sony Kapoor, head of the Re-define think tank, told that "the otherwise fractious European Union leaders have united in their criticism of the markets, the IMF and now (US Treasury Secretary) Tim Geithner - for being honest about the scale of problems facing the eurozone".

Markets are growing concerned that Italy will follow Greece, Ireland and Portugal in calling for bailout funds to help cope with its huge debt burden.

Asian markets had rallied before the meeting on Friday after the European Central Bank and its US, Japanese, Swiss and British counterparts offered to inject US dollars into lenders squeezed by Europe's debt crisis.

However Credit Agricole said in a note to clients: "Any improvement in sentiment following the US dollar liquidity announcement by various central banks last week is already filtering away against the background of EU officials' failure to make any headway over the weekend."

The downbeat news from Poland put fresh downward pressure on the euro Monday, virtually wiping out its strong gains on the back of the central banks' move.

The single currency was at $1.3663 in early Asian trade, from $1.3802 late Friday in New York, and at 105.06 yen, from 105.91 yen.

The dollar was at 76.89 yen, compared with 76.82 yen.

Eyes are now on a two-day meeting this week of the US Federal Reserve's policy setting committee, which is expected to announce fresh monetary easing measures.

It "is very unlikely that this discussion ends with no action being taken", DBS Bank said in a market commentary.

New York's main contract, light sweet crude for delivery in October, fell $1.12 to $86.84 a barrel in morning trade and Brent North Sea crude for November slipped 81 cents to $111.41 a barrel. (AFP)
avatar
yaad
A-Group
A-Group

Posts : 773
Join date : 2011-02-24

Back to top Go down

View previous topic View next topic Back to top

- Similar topics

Permissions in this forum:
You cannot reply to topics in this forum