Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Business News Asian shares slip on S&P eurozone warning

By Ahtasham Ul Haq Subscribe to RSS | December 9th 2011 | Views:
loading
 
  



Business News Asian shares slip on S&P eurozone warning:

Date December 06 , 2011

Asian markets fell after news that France and Germany have outlined a plan to save Euro.

Asian markets fell in cautious trade Tuesday as a Standard & Poor s warning of a possible downgrade for the eurozone offset news that France and Germany had outlined a plan to save the single currency.

The decision by S&P came as European leaders prepared for a two-day summit considered crucial for the future of the eurozone, whose debt crisis has sent global markets into turmoil.

BBY senior institutional trader Peter Copeland said the market was anticipating positive political leadership over the crisis, but added: "The S&P move is a reminder that it s not all over."

Tokyo gave up 1.39 percent, or 120.82 points, to 8,575.16 and Seoul lost 1.04 percent, or 20.08 points, to end at 1,902.82.

Sydney closed 1.48 percent, or 64.1 points, lower at 4,257.2 after Australia s central bank cut interest rates and warned of headwinds in the global economy.

Hong Kong fell 1.24 percent, or 237.46 points, to 18,942.23 and Shanghai lost 0.31 percent, or 7.32 points, to 2,325.91.

S&P said on Monday it had put the ratings of 15 of the 17 eurozone countries, including Germany and France, on negative watch.

The summit was "an opportunity for policymakers to break the pattern of what we consider to have been defensive and piecemeal measures to date... and advance a credible response to the crisis that would go far towards restoring investor confidence," it said.

"If the response of policymakers is not viewed by investors as robust, we believe market confidence could take another, possibly steep, drop downwards" that could force the downgrade, it said.

A review of ratings would be completed "as soon as possible" following the Brussels summit on Thursday and Friday.

S&P s surprise announcement came just hours after German Chancellor Angela Merkel and French President Nicolas Sarkozy thrashed out strict new rules for fiscal discipline within Europe, which they hope will finally end the region s woes.

The new rules would be enshrined in a rewritten EU Treaty signed by all 27 EU members or, as an alternative, by just the 17 eurozone members with the other nations signing on a voluntary basis.

Markets in Europe -- which closed before S&P s move -- rose on the plan while Italian bond rates fell below the 6.0 percent threshold for the first time since the end of October. Rates also dropped on Spanish and French bonds.

An early rally on Wall Street was pared by the ratings warning. The Dow ended up 0.65 percent, the tech-heavy Nasdaq added 1.10 percent and the broader S&P 500 added 1.03 percent.

On currency markets the euro fetched $1.3360 and 103.90 yen in afternoon Asian trade, compared with $1.3394 and 104.27 yen in New York late Monday.

The dollar was down slightly at 77.75 yen, against 77.83 yen.

The Australian dollar fell at one point to US$1.0180 Tuesday from US$1.0215 Monday after the Reserve Bank of Australia cut interest rates by 25 basis points for the second straight month and warned of pressure from a slowing global economy. But in later trade it recovered slightly to sit at US$1.0203.

While the rate cut would be welcomed ahead of Christmas bank chief Glenn Stevens said there was a likelihood of further pressure on world growth caused by tighter credit conditions.

Meanwhile the Asian Development Bank trimmed its 2012 growth projections for emerging East Asian economies, including China, from 7.5 percent to 7.2 because of the continuing eurozone uncertainties.

It said "major downside risks" included a deep recession in Europe and the United States, higher protectionism and persistent inflation.

New York s main oil contract, light sweet crude for January delivery, fell 21 cents to $100.78 a barrel in the afternoon. Brent North Sea crude for January shed 30 cents to $109.51. Gold was trading at $1,720.33 an ounce at 0820 GMT, from $1,744.88 late Monday.

In other markets:

Taipei fell 2.00 percent, or 141.80 points, to 6,956.28. Taiwan Semiconductor Manufacturing Co lost 1.18 percent to Tw$75.4 while design house MediaTek dived 6.6 percent to Tw$262.0. -- Manila fell 0.21 percent, or 8.95 points, to 4,282.77.

Lepanto Mining fell 6.8 percent to 1.65 pesos, Ayala Land slipped 0.3 percent to 15.96 pesos and Philippine Long Distance Telephone gained 0.3 percent to 2,414 pesos. Wellington closed down 0.34 percent, or 11.09 points, at 3,290.13.

Air New Zealand fell 1.60 percent to NZ$0.92 and Telecom dipped 0.50 percent to NZ$1.99 while Port of Tauranga was up 2.7 percent at NZ$10.07 and Freightways gained 1.8 percent to NZ$3.45.

Ahtasham Ul Haq - About Author:
More Information visit the site:
http://www.wordworldnews.blogspot.com

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/business-news-asian-shares-slip-on-s-p-eurozone-warning.htm

Related Business Articles Subscribe to RSS

International news- then and now
Published by Nidhigupta on June 2nd 2012 | Business
People all around the world are keen on knowing about the issues and matters of every country. Inter...
 
The shameful and terrible India latest news
Published by Nidhigupta on July 11th 2012 | Business
It is not a hidden fact, that India has a huge population. Thus, with such big population it is obvi...
 
Get the neoteric global news now online
Published by Nidhigupta on June 27th 2012 | Business
Global news is featured on the internet. There are plenty of sufficient numbers of news websites and...
 
Uttar Pradesh news reaches all over the world
Published by Nidhigupta on May 31st 2012 | Business
Uttar Pradesh is one of the states of our country. Everything occurs in here including different eve...
 
The innovative era of latest news
Published by Nidhigupta on July 16th 2012 | Business
News has proved to be the essential par of our daily lives. It has become necessary to have the dail...
 
Breaking news from the globe
Published by Nidhigupta on May 26th 2012 | Business
It is crucial for everyone in order to depend on day to use global news. We are able to acquire a gr...
 
The latest innovations India news channels have made
Published by Nidhigupta on June 5th 2012 | Business
In India news channels have made a lot of advancements in terms of visuals, reports, surveys almost ...
 
Online car magazines That’s right get iauto for all the latest in automotive news
Published by James Blee on August 25th 2012 | Business
To find out more about one of the best online car magazines that South Africa has to offer, visit ia...
 
How to start real estate news letter
Published by Dany on April 19th 2012 | Business
Real estate news letter is considered to be an effective advertising and marketing tool for real est...
 
Time to get the latest university news
Published by Gene Crayton on August 25th 2012 | Business
Education is a never-ending process. Each day you get to learn something new which may or may not be...
 
Get the most recent breaking news online
Published by Nidhigupta on June 20th 2012 | Business
Online news keeps you posted with most recent occurrences which are occurring around the globe. Thus...
 
Get Top news that woes the World
Published by Nidhigupta on May 7th 2012 | Business
News can be anything that is relevant and interesting to the readers. These days it is important for...
 
Starting the importance pertaining to exceptional world wide web solutions
Published by Sarah Jesse on August 20th 2012 | Business
There has been a lot of talk about the different kinds of web facilities that can certainly help a p...
 
Online car magazines That’s right get iauto for all the latest in automotive news
Published by James Blee on August 25th 2012 | Business
To find out more about one of the best online car magazines that South Africa has to offer, visit ia...
 
Need of current business news
Published by Nidhigupta on May 14th 2012 | Business
A great importance is in the hands of stock market whenever a person decides to invest in stock mark...
 
The flooding of latest sport news
Published by Nidhigupta on July 12th 2012 | Business
Every guy since his childhood days loves to indulge himself into sports. Be it rugby, basketball, cr...
 
Updates of world news through internet
Published by Nidhigupta on May 28th 2012 | Business
The most greatest aspect of these news channels is that there has been a complete merger of various ...
 
KlikBang Money- the news source!
Published by Jamessms on March 15th 2012 | Business
Wish you had an amazing source of information that could keep you informed about possibly just anyth...
 
Stay tuned to the latest India news
Published by Nidhigupta on June 21st 2012 | Business
Nowadays, breaking news has become a state of art. If not delivered fresh, it may become stale the ...
 
The upsetting breaking news for India
Published by Nidhigupta on July 23rd 2012 | Business
In this competitive world, it has become compulsory to keep ourselves updated with all the current e...