News / Economy

Soft-Landing Prospects Ease Asian Market Woes

Securities stock board, Tokyo, Sept. 5, 2011 (file photo).
Securities stock board, Tokyo, Sept. 5, 2011 (file photo).
Ivan Broadhead

Banks and exporters led Asian stock markets lower Friday as uncertainty over the European economic situation continued.

Asia awoke Friday to learn Standard and Poor’s had cut Spain’s long-term sovereign credit worthiness from AA to AA-.

Fitch credit ratings agency also downgraded UBS’s issuer default rating from A+ to A, just weeks after the latest rogue-trader scandal engulfed the Swiss banking giant. Fitch warned that 12 other banks faced similar downgrades, including Deutsche Bank and Goldman Sachs.

"Given the size of those institutions relative to the size of their sovereign, we felt that it was prudent," said Joo-Yung Lee, Senior Director of Fitch’s financial institutions group. "It reflects our view of probability of default, [and] at A level they're still very far from that."

During Asian trading, shares of Asian exporters with significant European exposure fell, including Japanese car and technology manufacturers.

Despite worries over the European and U.S. economies, Stephen Schwartz, chief economist with BBVA Research, says Asia is well-positioned to withstand fallout from the European downturn.

"Our baseline is a ‘muddle-through’ scenario," said Schwartz, who broadly concurred with Thursday's IMF statement that China will continue to grow on domestic demand, which could offset the downturn elsewhere. "The fundamentals across most Asian economies are very strong, which leaves the region with a lot of room for policy stimulus to counter this weaker external demand.”

While this view applies to other regional players with large domestic markets such as India and Indonesia, he expressed reservations about the region’s smaller economies.

"If the global situation were to deteriorate, the economies that were hit hard then could be hit hard again," he said, citing smaller and more open export-dependent economies such as Hong Kong, Singapore, Taiwan.

China’s September consumer price data provided a glimmer of hope at the end of an unpredictable trading week.

Although Chinese inflation remains high, up six-point-one percent on the year, the figure was slightly down from August and July showings.

You May Like

Video British Fighters on Frontline of Islamic State Information War

It’s estimated that several hundred British citizens are fighting for Islamic State alongside other foreign jihadists More

Pakistan's Political Turmoil Again Shines Spotlight on Military

Thousands of protesters calling for PM Sharif to step down continue protests in front of parliament, as critics fear political impasse could spur another military coup More

Photogallery Ebola Quarantines Spark Anxiety in Liberian Capital

Food prices rise sharply as residents attempting purchases clash with security forces, leaving one person dead 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.
Native Bees May Help Save Cropsi
X
Deborah Block
August 22, 2014 12:23 AM
U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video Native Bees May Help Save Crops

U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video US Defense Officials Plan for Long-Term Strategy to Contain Islamic State

U.S. defense officials say American air strikes in Iraq have helped deter Islamic State militants for the time being, but that a broad international effort is needed to defeat the extremists permanently. Defense Secretary Chuck Hagel warned Thursday that the group formerly known as the Islamic State in Iraq and the Levant, or ISIL, is better organized, and financially and militarily stronger than any other known terrorist group. Zlatica Hoke has more.
Video

Video Drug-Resistant Malaria Spreads in Southeast Asia

On Thailand’s border with Myanmar, also known as Burma, a malaria research and treatment clinic is stepping up efforts to eliminate a drug-resistant form of the parasite - before it spreads abroad. Steve Sandford reports from Mae Sot, Thailand.
Video

Video Gaza Conflict, Hamas Popularity Challenge Abbas

The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Nigeria's 'Nollywood' Movie Industry Rolls in High Gear

Twenty years after its birth in a video shop in Lagos, Nigeria's "Nollywood" is one of the most prolific film industries on earth. Despite low budgets and whirlwind production schedules, Nigerian films are wildly popular in Africa and industry professionals say they hope, in the future, their films will be as great in quality as they are in quantity. Heather Murdock has more for VOA from Lagos.
Video

Video UN Launches 'Biggest Aid Operation in 30 Years' in Iraq

The United Nations has launched what it describes as one of the biggest aid operations in 30 years in northern Iraq, as hundreds of thousands of refugees flee the extremist Sunni militant group calling itself the Islamic State. As Kurdish and Iraqi forces battle the Sunni insurgents, the fighting has forced more people to flee their homes. Kurdish authorities say the international community must act now to avert a humanitarian catastrophe. Henry Ridgwell reports for VOA from London.
Video

Video Cambodian American Hip Hop Artist Sings of Personal Struggles

A growing underground movement of Cambodian American hip hop artists is rapping about the struggles of living in urban America. Most, if not all of them, are refugees or children of refugees who came to the United States from Cambodia to escape the Khmer Rouge genocide of the 1970s. Through their music, the artists hope to give voice to immigrants who have been struggling quietly for years. Elizabeth Lee reports from Long Beach, California.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7492
JPY
USD
102.27
GBP
USD
0.5960
CAD
USD
1.0950
INR
USD
61.300

Rates may not be current.