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:
loading
 
  



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:
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-world-news-asian-stocks-fall-on-europe-crisis-pessimism.htm

Related Business Articles Subscribe to RSS

Understand India with latest India news
Published by Nidhigupta on July 20th 2012 | Business
India is a vast country with more than one hundred million of human population. The possibilities of...
 
Getting started in the world of Arduino
Published by Ewan Fisher on March 16th 2012 | Business
An Arduino starter kit is the perfect set of equipment for anyone looking to get involved in the wor...
 
Hot updates about the latest India news
Published by Nidhigupta on June 15th 2012 | Business
In India, people have started developing a keenness for educating themselves with the most recent an...
 
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...
 
Get alerts about today news
Published by Nidhigupta on May 16th 2012 | Business
Online news updates help in getting the newfangled news every time. It is offline as well as online....
 
Color your commercial world with New Ideas
Published by Robert Samuels on February 22nd 2012 | Business
In order to go for better quality color printing, online is the best option. There you come across a...
 
The progress online today news has made
Published by Nidhigupta on June 14th 2012 | Business
News is something that reaches out to each and everyone in the whole world. It is a very popular and...
 
Automotive news – for expert opinion
Published by Jamessms on March 7th 2012 | Business
Automotive industry is one of the most buzzing industries of the world. Irrespective of the turbulen...
 
The latest news that reflect poor conditions of mother earth
Published by Nidhigupta on July 19th 2012 | Business
However, the breaking news is not just limited to these natural calamities. Human still undertake m...
 
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...
 
Essential Environment training for a better world
Published by Luis Childress on April 9th 2012 | Business
Environment development and sustainability is an international multidisciplinary journal covering as...
 
The recent progress made by online news
Published by Nidhigupta on June 26th 2012 | Business
Latest news is the news that has occurred in the recent past i.e. recently. Information is the most ...
 
Read world news and connect yourself with the globe
Published by Nidhigupta on July 26th 2012 | Business
World news basically refers to news which is international. It deals with the subjects and issues at...
 
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...
 
Online news is very beneficial
Published by Nidhigupta on June 12th 2012 | Business
Everyone today is keen on knowing about what is happening in their city, across their country, aroun...
 
Learn about various sources that feature breaking news India
Published by Nidhigupta on June 25th 2012 | Business
In India, people are willing to educate themselves with the most recent and latest news about the co...
 
Now get the latest news online
Published by Nidhigupta on June 26th 2012 | Business
News, as we all know, is the most popular and leading medium used by the media to reach out to the m...
 
The progress Indian business news has made
Published by Nidhigupta on June 5th 2012 | Business
Since the post-independence period, India's business and trade economy has grown and has flourished ...
 
Logix Neo World: a world of you Happiness
Published by Rashid Mian on June 27th 2012 | Business
This article describes every one of the information linked to Logix Neo World. Logix Neo World is th...
 
UP news in the limelight
Published by Nidhigupta on June 21st 2012 | Business
UP news basically refers to the events and occurrences that take place all around in every part of t...