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

Video Snowstorm Sweeps Northeastern US

'This is nothing like we feared it would be,' New York City Mayor Bill de Blasio says; he had warned storm could be one of worst in city history More

Millions of Displaced Nigerians Struggle With Daily Existence

Government acknowledges over a million people displaced in 2014 due to fight against Boko Haram insurgency More

Facebook: Internal Error to Blame for Outages

Temporary outage appeared to spill over and temporarily slow or block traffic to other major Internet sites 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.
Obama Urges Closer Economic Ties During Historic India Visiti
X
Aru Pande
January 26, 2015 9:33 PM
U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video Obama Urges Closer Economic Ties During Historic India Visit

U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video US, EU Threaten New Russia Sanctions Over Ukraine

U.S. President Barack Obama has blamed Russia for an attack by Ukrainian separatists that left dozens dead in the port of Mariupol and cast further doubt on the viability of last year’s cease-fire with the Kyiv government. VOA’s Michael Bowman reports from Washington.
Video

Video White House Grapples With Yemen Counterterrorism Strategy

Reports say the U.S. has carried out a drone strike on suspected militants in Yemen, the first after President Barack Obama offered reassurances the U.S. is continuing its counterterrorism operations in the country. The future of those operations has been in question following the collapse last week of Yemen’s government. VOA White House correspondent Luis Ramirez reports.
Video

Video Kerry Warns Against Violence in Nigeria Election

US Secretary of State John Kerry visited Nigeria Sunday in a show of the level of concern within the U.S. and the international community over next month’s presidential election. Chris Stein reports.
Video

Video Zoo Animals Show Their Artistic Sides

The pursuit of happiness is so important, America's founding fathers put it in the Declaration of Independence. Any zookeeper will tell you animals need enrichment, just like humans do. So painting, and even music, are part of the Smithsonian National Zoo's program to keep the animals happy. VOA’s June Soh met some animal artists at the zoo in Washington. Faith Lapidus narrates.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Saudi, Yemen Developments Are Sudden Complications for Obama

The death of Saudi Arabia's King Abdullah and the collapse of Yemen’s government have cast further uncertainty on U.S. efforts to fight militants in the Middle East and also contain Iran’s influence in the region. VOA White House correspondent Luis Ramirez reports on the new complications facing the Obama administration and its Middle East policy.
Video

Video Progress, Some Areas of Disagreement in Cuba Talks

U.S. and Cuban officials are reporting progress from initial talks in Havana on re-establishing diplomatic ties. U.S. Assistant Secretary of State (for Western Hemisphere Affairs) Roberta Jacobson said while there was agreement on a broad range of issues, there also are some “profound disagreements” between Washington and Havana. VOA State Department correspondent Pam Dockins has the story.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid