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Looming euro-zone debt crisis drags Asian markets lower

15 Nov 2011 Evaluate

After witnessing gimps of glory in previous two sessions’ Asian markets have witnessed a steep cut on Tuesday’s trade amid concerns over whether newly formed governments in Italy and Greece can contain their debt crisis as Spanish and Italian government-bond yields climbed. Markets remained buoyed in past two days as Greece and Italy moved to form new governments and embarked on other steps to get their debt troubles under control. But a worrisome sign emerged late Monday when the Italian government sold five-year bonds at 6.29 percent interest, the highest interest rate since 1997. Italy paid a much lower rate of 5.32 percent at a similar auction only last month.

All the Asian equity indices barring Shanghai composite snapped the day’s trade in the red. Seoul Composite remained the biggest loser, down by about a percent followed by Hang Seng and Nikkei down by 0.82% and 0.72% respectively. However, Chinese benchmark ended flat on Tuesday as investors continued to wait for clear signs of a shift in Beijing’s monetary policy.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,529.76

1.05

0.04

Hang Seng

19,348.44

-159.74

-0.82

Jakarta Composite

3,813.84

-19.20

-0.50

KLSE Composite

1,477.22

-1.65

-0.11

Nikkei 225

8,541.93

-61.77

-0.72

Straits Times

2,811.58

-18.56

-0.66

Seoul Composite

1,886.12

-16.69

-0.88

Taiwan Weighted

7,491.06

-34.59

-0.46

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