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Fear over EU deal drags Asian markets lower

09 Dec 2011 Evaluate

Sentiments remained bearish in Asian region and all the regional indices butchered on fears that Europe’s leaders will not agree a deal to tackle their debt crisis as the first day of a crucial summit broke up with plans for a full treaty change in tatters. With the mood already soured by the European Central Bank (ECB) saying it would not indefinitely buy the bonds of debt-wracked countries, news of the split within the 27-nation bloc left investors' nerves on edge.

Chinese benchmark declined over half a percent after country’s lower-than-expected inflation data failed to provide much of a sentiment boost around the region, despite hopes for further policy loosening, as it also spurred concerns over growth in the world’s second-largest economy. China’s consumer price index for November was up 4.2% on-year, compared with expectations for 4.4% and October's 5.5%. While, Nikkei fell about one and a half percent on Friday and tested key support at its 25-day moving average after steps by the European Central Bank to help Europe.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,315.27

-14.55

-0.62

Hang Seng

18,586.23

-521.58

-2.73

Jakarta Composite

3,759.61

-22.15

-0.59

KLSE Composite

1,460.13

-12.79

-0.87

Nikkei 225

8,536.46

-128.12

-1.48

Straits Times

2,694.60

-33.71

-1.24

Seoul Composite

1,874.75

-37.64

-1.97

Taiwan Weighted

6,893.30

-89.60

-1.28

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