News / Asia

Asia Markets Tumble on Greece Debt Woes

Asia markets fell sharply Friday, reacting to Wall Street's plunge over Greek debt crisis worries.  But analysts and the UN regional economic arm remain upbeat on Asia's economic prospects despite the financial jitters.

Stock markets across Asia fell, including those in China, Indonesia, Taiwan, Thailand and New Zealand, by up to four per cent. Gold climbed to just over $1200.00 an ounce - a gain of $20.00 from the previous day.

The wave of selling of stock came as investors feared that Greece's debt problems could spread to other countries within the eurozone such as Spain and Portugal.

Asia's economies have largely shown sound recovery from the global financial crisis of 2009,  due largely to government stimulus packages that led to increased domestic spending.

But the market uncertainties could still rattle economic confidence.

Noeleen Heyzer, executive secretary of the U.N.'s regional economic and social arm (UNESCAP), said economic recovery remains fragile and problems faced in the eurozone could lead to more uncertainty.

"This rebound is actually fragile and it is uneven," said Heyzer. "It is a 'v' shape rebound that can become a double dip. We're very concerned about several of the risk factors that would have to be managed and this included inflation, the building up of asset bubbles because of excess liquidity, appreciation of the exchange rates in many of the Asian countries."

In Japan the Nikkei average fell over four per cent to a two month low as shares fell as a result of concerns over Europe's debt crisis.

Japan's Prime Minister Yukio Hotayama in public comments expressed his concerns over what he called "the Greek problem".

The Bank of Japan Friday said it was willing to offer $22 billion in short term loans to commercial banks to boost liquidity in the world's second largest
economy.

In China markets dropped almost two per cent over concerns the central government's moves to curb bank lending with the European Union - China's largest trading partner.

While the uncertainty swept across the markets, analysts said they were still confident in the Asian economies.

Heyzer said the problems faced in the eurozone highlighted Asia's need to focus its economic development by boosting intra-regional trade and investment.

"Just look at what is happening to the eurozone today; what is happening to the U.S. debt levels today and the global imbalances. So what Asia will have to do is to look to new drivers of growth that takes into account … globalization, side by side with regionalization," said Heyzer.

UNESCAP in its latest regional survey says strong support from expansion policies has helped Asian and Pacific economies to reverse the declines of the latter half of 2009. But the outlook remained dependent on the world economy stabilizing.

Analysts Friday say they expect Asia's markets to recover as most companies in the region are not directly exposed to Europe's hardest hit economies.

You May Like

How to Safeguard Your Mobile Privacy

As the digital world becomes more mobile, so too do concerns about eroding privacy and increased hacking More

'Desert Dancer' Chronicles Iranian Underground Dance Troupe

Film by Richard Raymond is based on true story of Afshin Ghaffarian and his friends More

Obesity Poses Complex Problem

Professor warns of obesity’s worldwide health impact 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.
Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam Wari
X
Katherine Gypson
May 25, 2015 1:32 AM
For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.
Video

Video Iowa Family's Sacrifice Shaped US Military Service for Generations

Few places in America have experienced war like Waterloo. This small town in the Midwest state of Iowa became famous during World War II not for what it accomplished, but what it lost. As VOA’s Kane Farabaugh reports, the legacy of one family’s sacrifice is still a reminder today of the real cost of war for all families on the homefront.
Video

Video On Film: How Dance Defies Iran's Political Oppression

'Desert Dancer' by filmmaker Richard Raymond is based on the true story of a group of young Iranians, who form an underground dance troupe in the Islamic Republic of Iran. This is the latest in a genre of films that focus on dance as a form of freedom of expression against political oppression and social injustice. VOA’s Penelope Poulou has more.
Video

Video Turkey's Ruling Party Trying to Lure Voters in Opposition Stronghold

Turkey’s AK (Justice and Development) Party is seeking a fourth successive general election victory, with the goal of securing two-thirds of the seats in Parliament to rewrite the constitution and change the country's parliamentary system into a presidential one. To achieve that, the party will need to win seats in opposition strongholds like the western city of Izmir. Dorian Jones reports.
Video

Video Millions Flock to Ethiopia Polls

Millions of Ethiopians cast their votes Sunday in the first national election since the 2012 death of longtime leader Meles Zenawi. Mr. Meles' party, the Ethiopian People's Revolutionary Democratic Front, is almost certain of victory again. VOA's Anita Powell reports from Addis Ababa.
Video

Video Scientists Testing Space Propulsion by Light

Can the sun - the heart of our solar system - power a spacecraft to the edge of our solar system? The answer may come from a just-launched small satellite designed to test the efficiency of solar sail propulsion. Once deployed, its large sail will catch the so-called solar wind and slowly reach what scientists hope to be substantial speed. VOA’s George Putic reports.
Video

Video FIFA Trains Somali Referees

As stability returns to the once lawless nation of Somalia, the world football governing body, FIFA, is helping to rebuild the country’s sport sector by training referees as well as its young footballers. Abdulaziz Billow has more from Mogadishu.
Video

Video With US Child Obesity Rates on the Rise, Program Promotes Health Eating

In its fifth year, FoodCorps puts more than 180 young Americans into 500 schools across the United States, where they focus on teaching students about nutrition, engaging them with hands-on activities, and improving their access to healthy foods whether in the cafeteria or the greater community. Aru Pande has more.
Video

Video Virginia Neighborhood Draws People to Nostalgic Main Street

In the U.S., people used to grow up in small towns with a main street lined by family-owned shops and restaurants. Today, however, many main streets are worn down and empty because shoppers have been lured away by shopping malls. But in the Del Ray neighborhood of Alexandria, Virginia, main street is thriving. VOA’s Deborah Block reports it has a nostalgic feel with its small restaurants and unique stores.

VOA Blogs