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Carnage continues on Asian indices amid lingering troubles in Europe

16 Nov 2011 Evaluate

The carnage on Asian equity indices prolonged for yet another day on fears that the debt crisis may spread to other euro zone nations as rising borrowing costs were affecting AAA- rated France. The political outlook remained unclear in Italy and Greece as they tried to push through severe austerity measures needed for bailout package and win the market confidence. The Italy Prime Minister designate, Mario Monti, is expected to unveil Italy’s new government on Wednesday. Moreover, the sentiments were also down as cash continued to flow out of European government debt on Tuesday, triggered by a less-than-stellar auction of Spanish treasury bills, pushing yields on Italian bonds above the key psychological 7.0% again and hitting even fiscally strong Northern European nations, such as Triple-A-rated France, Austria, the Netherlands and Finland.

Meanwhile, Chinese benchmark declined over two and a half percent on Wednesday, the biggest fall in nearly two months, dragged by financial and property issues after the International Monetary Fund warned that China’s biggest commercial banks face systemic risks. The IMF warned on Tuesday that China’s biggest commercial banks face systemic risks if a combination of credit, property, currency and yield curve shocks that could be withstood in isolation were to occur together.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,466.96

-62.80

-2.48

Hang Seng

18,960.90

-387.54

-2.00

Jakarta Composite

3,814.09

0.25

0.01

KLSE Composite

1,476.84

-0.38

-0.03

Nikkei 225

8,463.16

-78.77

-0.92

Straits Times

2,807.44

-4.14

-0.15

Seoul Composite

1,856.07

-30.05

-1.59

Taiwan Weighted

7,387.52

-103.54

-1.38

 

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