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Asian markets skid lower on Europe fears

09 May 2012 Evaluate

Asian markets resumed southbound journey after a day halt and all the Asian counters snapped the day’s trade in the negative terrain on Wednesday as investors remained concerned over fears that Greece could leave the eurozone after the country’s second biggest party said it would rip up a bailout deal following weekend elections. Moreover, the anti-austerity Syriza leftists said Sunday’s polls showed Greeks had rejected the strict cuts imposed as part of plans to clear up Athens' mountain of debts. Further adding to jitters, the Chinese Communist Party could delay its upcoming five-yearly congress as the party struggles to finalise a once-in-a-decade leadership change, sparking fears that economic recovery could stall in the world's second-largest economy.

Meanwhile, Hong Kong shares suffered a fifth-straight loss on Wednesday, dogged by weakness in Chinese financials and growth-sensitive sectors as investors cut risk and rotated into defensive plays, underscoring fears that the Greek bailout deal could unravel. Moreover, Taiwan stocks fell about a percent, joining regional bourses in declines as uncertainty over Greece’s future cut appetite for risk, while confusion over Taiwan's controversial plan for a tax on stock trading profit added to worries.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,408.59

-40.30

-1.65

Hang Seng

20,330.64

-154.11

-0.75

Jakarta Composite

4,129.06

-52.01

-1.24

KLSE Composite

1,584.90

-5.70

-0.36

Nikkei 225

9,045.06

-136.59

-1.49

Straits Times

2,900.91

-31.07

-1.06

KOSPI Composite

1,950.29

-16.72

-0.85

Taiwan Weighted

7,475.71

-70.00

-0.93

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