Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Business World News Asian stocks fall on Europe crisis pessimism

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

Business World News Asian stocks fall on Europe crisis pessimism:

Date December 08 , 2011

Asian stocks fell as hopes faded that a bold solution might be found to a crippling debt crisis.

Asian stocks fell Thursday as hopes faded that a bold solution might be found to a crippling debt crisis that is threatening to drag Europe into a deep recession.

Benchmark oil rose above $100 per barrel while the dollar fell against the euro and the yen.

Japan s Nikkei 225 fell 0.6 percent to 8,670.82, dragged down by weaker-than-expected machinery orders. South Korea s Kospi lost 0.3 percent to 1,913.69 and Hong Kong s Hang Seng shed 0.7 percent to 19,111.64.

Australia s S&P/ASX 200 dropped 0.2 percent to 4,286. Benchmarks in Singapore, Taiwan and India also fell. Mainland China and Malaysia rose.

One point of friction has surfaced over a proposal by French President Nicolas Sarkozy and German chancellor Angela Merkel, leaders of the two economic powerhouses among the 17 nations that use the euro. They are demanding far-reaching changes to the treaty governing the European Union to enforce fiscal discipline among its members.

That proposal is being met with resistance by the European Council, an institution that defines the priorities of the entire 27-nation EU. Its president, Herman Van Rompuy, favors going a simpler route amending existing rules that apply to the 17 euro countries to avoid the trickier step of requiring every country to approve the new treaty.

The disagreement has soured hopes for an immediate solution to the crisis.

"Normally this kind of talk would take place behind closed doors. The fact that it s in the open suggests it already has and normal channels have, at least temporarily, broken down," analysts at DBS Bank Ltd. said in a research note.

Additionally, certain provisions in the Franco-German proposal, such as setting automatic penalties for countries that overspend, are controversial and have the potential to delay an agreement.

Urgency was added to the situation Wednesday when ratings agency Standard & Poor s threatened to downgrade the bonds of all EU countries because their economies were intricately linked with the 17 nations that use the euro.

The intensifying debt crisis and lack of radical solution such as the issuance of eurobonds have roiled global stocks for months. Germany has resisted eurobonds due to fears that pooling debt would drive up its own borrowing costs, expose its taxpayers to the bad debt of weaker countries, and remove incentives for struggling nations to get their finances in order.

"Germany and the rest of Europe are going into two directions. The rest of Europe wants Germany to stand behind the euro but Germany does not want to be the lender of last resort," said Francis Lun, managing director of Lyncean Holdings in Hong Kong. "Because it ... will be the German taxpayer to foot the bill and I don t think that s what Germany wants."

Asian shares faced multiple headwinds. Australia unexpectedly eliminated 6,300 jobs in November. Most economists had predicted total employment would rise by 10,000.

Meanwhile, Japan s core private-sector machinery orders fell a seasonally adjusted 6.9 percent in October, the second consecutive month of decline. Financial markets had expected a 0.5 percent increase, Kyodo News Agency reported. That hurt industrial shares such as Nippon Steel, which lost 1 percent, and industrial supplier Mitsui & Co., down 1.5 percent.

Tokyo Electric Power, operator of the crippled Fukushima nuclear power plant, plunged 7.6 percent after a news report said the government is set to effectively nationalize the utility.

Samsung Electronics rose 2 percent, as Citigroup Global Markets rated its stock "a buy," saying it was expected to be the only profitable major display panel maker in the fourth quarter of 2011.

On Wall Street, the Dow rose 0.4 percent to close at 12,196.37. The Standard & Poor s 500 index rose 0.2 percent at 1,261.01. The Nasdaq composite index fell marginally to 2,649.21.

Benchmark oil for January delivery was up 13 cents to $100.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 79 cents to end at $100.49 per barrel on the Nymex on Wednesday.

In currencies, the euro rose to $1.3404 from $1.3394 late Wednesday in New York. The dollar fell slightly to 77.64 yen from 77.66 yen.

Ahtasham Ul Haq - About Author:
More Information visit the site:

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

Article Source:

Related Business Articles Subscribe to RSS

Acquaint yourselves with news headlines in the comfort of your home
Published by Nidhigupta on July 7th 2012 | Business
Most of the people prefer referring to news headlines on the television. There are ample to televisi...
World wide web features news headlines today
Published by Nidhigupta on May 17th 2012 | Business
Newspapers are a major source of information. Online news is also much in demand. News websites pla...
The progress today news has made
Published by Nidhigupta on June 2nd 2012 | Business
News is made available to us via news channels, news blogs and websites which feature all the recent...
The effect of current business news on the businessmen
Published by Nidhigupta on July 9th 2012 | Business
India came to be recognised for its business growth and development only in the 90s. And since then,...
Get International news on Internet
Published by Nidhigupta on June 19th 2012 | Business
Due to the new innovations in technology, the world is coming closer. What is happening globally and...
The benefits of world news
Published by Nidhigupta on June 18th 2012 | Business
The world is coming closer and closer day by day thanks to the latest innovations in science and tec...
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...
The horrible education system reflected through India news today
Published by Nidhigupta on July 16th 2012 | Business
Latest India news has so much to offer to the students. As a result of this, students are now glued ...
Get to know about the latest India news
Published by Nidhigupta on May 30th 2012 | Business
After the independence, India has started to prosper at a large scale in every field. Due to the lat...
Hot off the press latest Punjab news
Published by Nidhigupta on June 7th 2012 | Business
Punjab, located in the North western part of India is the nation's largest single provider of wheat ...
The importance of online news
Published by Nidhigupta on June 27th 2012 | Business
News keeps us updated with the most recent events and happenings of the nation. Today news has emerg...
Aeropostale Dubai: First International shopping mall in the world of fashion
Published by Fashlink on April 24th 2012 | Business
When you need a great exposure of designs in teen and pre-teens apparel, Aeropostale Dubai is the be...
Phoenix Pool Contractors provides various pool services in Phoenix and all our world.
Published by Microcell Systems on February 27th 2012 | Business
Premier Pools and spas is one of the most successful, accuracy and flexible custom pool builders in ...
Business News makes people aware about happenings in the world of Business
Published by Nidhigupta on June 6th 2012 | Business
Lately, the world has found numerous types of alteration which is occurring at a very rapid speed. A...
Hot off the fire world breaking news
Published by Nidhu Gupta on June 16th 2012 | Business
It is very important for us to be aware of the happenings and events of the world. This can only be ...
The benefits of online news
Published by Nidhigupta on June 11th 2012 | Business
The best way of watching news is online news. Online news has gained priority these days. The best t...
Protection for both our personal and professional world
Published by Hamish Middleton on March 22nd 2012 | Business
Expanding business and increasing turnovers augments the risk of larceny. Larger the business higher...
Game of Thrones dvd news and development
Published by Xiaojuan on November 29th 2011 | Business
The change in medium is going to bring about some change in people’s perception of a character. Sa...
Information on how Ecommerce Puts in the Overall world Each other
Published by Alvin Baily on July 21st 2012 | Business
The worldwide country's economy is definitely floods. As the climate of the market places can not be...
Automotive news on industry trends
Published by Jamessms on December 26th 2011 | Business
efficiency and greener models, or the discounts and add-ons that come with the amazing pack of wheel...