News / Economy

    Asian Markets Follow Sharp US Swings

    A man walks past a panel displaying the Hang Seng Index during a midday break, outside a bank in Hong Kong, August 11, 2011
    A man walks past a panel displaying the Hang Seng Index during a midday break, outside a bank in Hong Kong, August 11, 2011
    Brian Padden

    Despite robust economic growth in many parts of Asia, stock markets in the region this week have closely followed the sharp swings in stock prices in the United States and Europe.

    In the last week, Asian stock prices followed the trend set by stock markets in the United States and Europe, falling from Friday to Tuesday on eurozone fears and the U.S. debt downgrade, rebounding Wednesday after the United States said it would hold rates at record lows for two years.  On Thursday, Asian markets initially dropped sharply, but ended the day less than one percent down.  At one point on Thursday, gold surged to a record high of more than $1,800 an ounce.

    Economist Cyn Young Park, with the Asian Development Bank in Manila, says these are uncertain times for Asian investors as well those in the West.  News of U.S. credit rating downgrade highlighted their concerns about the sluggish economies in their primary export markets.  She says the volatile swing in stock prices in Asia and an increased demand for gold are temporary moves by investors to play it safe, for now.

    "This is really more like a psychological [shock] and then a panic," said Park. "And, if they are not able to contain this, that really can create more problems for the real economies.  But at this stage we still need to wait and see whether this sort of a financial turmoil will translate into something more real."

    She says Asian stock markets are accurately reflecting concern about the economic health of the region.  Although many investors and economic officials in Asia have said the growth of the middle class and trade within the region are making Asia less dependent on the G3 economies of the United States, Europe and Japan, Park says Asia is not yet economically insulated.

    "Despite really strong growth in the inter-regional trade, the final demand still lies with the Atlantic economies, the G3 economies," said Park.  "With the G3 economies all sort of going through this severe, you know, crisis of confidence and then don't really know whether or not that it is going to affect heavily on their real economy, investors ought to be a little jittery."

    Park says a lack of global demand should also ease concerns about severe inflation in China and other countries in the region.  The Asian Development Bank is urging central banks in Asia to pause measures to contain high inflation until global market turmoil subsidies.

    You May Like

    Video Twists and Turns Aplenty in US Presidential Race

    Even as Americans pause for this week’s Memorial Day holiday, much attention is focused on the presidential contest

    Iran Orders Social Media Sites to Store Data Inside Country

    New requirements are expected to affect the instant messaging app Telegram, which has more than 20 million users inside Iran

    The Struggle With Painkillers: Treating Pain Without Feeding Addiction

    'Wonder drug' pain medications have turned out to be major problem: not only do they run high risk of addicting the user, but they can actually make patients' chronic pain worse, US CDC says

    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.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8954
    JPY
    USD
    109.65
    GBP
    USD
    0.6827
    CAD
    USD
    1.3037
    INR
    USD
    67.037

    Rates may not be current.