All the Asian equity indices snapped the day’s trade in the negative terrain on Tuesday after a warning from Standard & Poor’s raised fears of possible sovereign credit downgrades of top-rated European nations. The credit rating agency placed 15 of the 17 countries that use the euro on a negative credit watch. The list included many economies that have long been considered among Europe’s strongest, such as France and Germany. S&P’s move came after French President Nicolas Sarkozy and German Chancellor Angela Merkel called for stricter financial oversight among the European Union's 27 member nations.
Meanwhile, China’s main stock index closed down 0.3 percent on Tuesday, the lowest level in six weeks, dragged down by gold-related shares due to declining prices for the precious metal while, Hong Kong’s benchmark tumbled over a percent as banks traded broadly weaker in the wake of S&P’s warning, with Agricultural Bank of China receding 1.7 percent, and Bank of China Ltd. down 1.8 percent, while HSBC Holdings PLC declined 1 percent after the lender received a large fine by UK regulators over the sales of some securities to retail investors.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2,325.90 | -7.32 | -0.31 |
Hang Seng | 18,942.23 | -237.46 | -1.24 |
Jakarta Composite | 3,752.67 | -28.12 | -0.74 |
KLSE Composite | 1,480.92 | -9.03 | -0.61 |
Nikkei 225 | 8,575.16 | -120.82 | -1.39 |
Straits Times | 2,749.24 | -16.99 | -0.61 |
Seoul Composite | 1,902.82 | -20.08 | -1.04 |
Taiwan Weighted | 6,956.28 | -141.80 | -2.00 |
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