News / Asia

Asia Markets Tumble

Asian markets slipped following Thursday's big falls in the United States and Europe. The normally insulated Chinese markets also dived before recovering, as nerves remain on edge over the worsening debt crisis in some European Union nations and the euro's big slide.

Asian stock markets fell sharply in early trading Friday as they reacted to continuing declines in Europe and on Wall Street.

The Nikkei 225 index in Japan lost 2.5 percent, and Singapore's Straits Times Index shed two percent.

In China, Shanghai's Composite index dropped nearly three percent early in the day but rallied and ended up just over one percent.

Chinese markets generally have been insulated from the affects of the European debt crisis and the struggling U.S. economy. Instead, over the past few months, they have been more affected by concerns that the government will clamp down on the high-flying property market.

But Michael Pettis, a finance professor at Peking University, says the jittery Chinese markets are starting to react to the weakening euro and concerns that Europe's problems will hurt the vulnerable U.S. economy.

As a result, he says, increased trade conflict is inevitable as Washington and Beijing respond differently to the European debt crisis and euro slide.

"What I don't think the Chinese fully appreciate yet is that in a world of contracting global demand, it's the deficit countries like those in the euro zone and the U.S that hold most of the cards. But I do think that because the U.S. and China require completely opposite responses to the crisis in Europe, and [that] these are going to make trade tensions much, much worse," said Pettis.

Many investors and economists worry that Greece and other economically vulnerable nations like Spain or Portugal will be unable to pay their debts despite an unprecedented and costly rescue effort by the European Union.

Financial reform legislation in the U.S. also has hurt the markets, because investors are concerned about how the reforms will affect earnings for banks and investment companies.

Markets in Hong Kong and South Korea were closed on Friday for a holiday, while trading in Thailand has been suspended because of the political violence in Bangkok.

You May Like

Is Air Travel Safe?

Aviation expert says despite tragic losses of Malaysian Airlines flights 370 and 17, industry experienced lowest fatality rate in recorded history last year More

Multimedia 100 Days Later, Nigerian Girls Still Held

Activists holding rallies in Nigeria and several other countries to mark 100th day of captivity for more than 200 schoolgirls being held by Boko Haram More

Chocolate Too Bitter? Swap Sugar for Mushrooms

US food technology company develops fermentation process using mushrooms to reduce bitterness in cocoa beans, believes it will cut sugar content in candy More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Carriers Suspend Travel to Israeli
X
Carolyn Presutti
July 23, 2014 1:21 AM
The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video US Carriers Suspend Travel to Israel

The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video NASA Focuses on Earth-Like Planets

For decades, looking for life elsewhere in the universe meant listening for signals that could be from distant civilizations. But recent breakthroughs in space technology refocused some of that effort toward finding planets that may harbor life, even in its primitive form. VOA’s George Putic reports on a recent panel discussion at NASA’s headquarters, in Washington.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.

AppleAndroid