Sea of Red in Asia as Debt Fears Escalate
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Yahoo!Finance reports World stock markets tumble on Europe debt woes
World stocks plunged Thursday as fears Greece's debt crisis will spread to other European countries and undermine the global recovery continued to rattle markets. Investors are questioning whether a $142 billion aid package for Greece will be adequate to keep debt problems from engulfing other European nations with weak government finances.Asia-Pacific Markets
Analysts said some European countries may have to cut government spending to calm jittery markets, which could undermine economic growth and demand for exports. "On any further deterioration in this situation, emerging markets will be hit via rising risk aversion, weaker trade flows and falling commodity prices," Citigroup said in a report.
The weaker euro hurt Japanese companies who do significant business in Europe. Canon Inc. was down 3.3 percent, and rival camera maker Nikon Corp. fell 3.1 percent. Financial issues declined across Asia, with Japan's Sumitomo Mitsui Financial Group Inc. down 4.3 percent and South Korea's KB Financial Group Inc. tumbling 4.6 percent.
Click on chart for sharper image. At the time of capture China was smoked for over 4%.
Chart courtesy of Yahoo!Finance
$SSEC Shanghai Composite
One measure of risk taking and risk aversion is emerging markets. China has not acted well all year. The Chinese stock market gave a warning signal in 2008 and perhaps it is doing so again. Today's 4% decline is not reflected in the above chart.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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