» 01/22/2010 10:27 ASIA After Obama's speech, the Asian markets fall to 3% The U.S. president is "ready to fight" to limit the size of banks and their trade in credit risk and proprietary trading. Fears for the credit crunch in Beijing. Tokyo: -3%, Hong Kong -2.54%, Shanghai: - 2.5%, Seoul: -1.87%.
Hong Kong (AsiaNews / Agencies) - Asian markets fell today to 3%. Among the reasons analysts list the weakening of the dollar, after Barack Obama's speech yesterday in which he proposed new restrictions on banks; the fall in commodity prices; the fear of a tightening in monetary policies by Beijing.
The Nikkei fell almost by 3%, the lowest point in the last 4 weeks. This is due in part to the strengthening of the yen in comparison to the dollar and euro and in part to falling prices of metals and oil.
By midday the Hong Kong Stock Exchange was down 2.54, the lowest point in 4 months. The decline is attributed to losses on Wall Street, the descent in oil prices (now at $ 76) and the fear of tightening in lending and exposure of the banks wanted by China (see 13/01/2010 Beijing tightens borrowing, Chinese stock markets drop).
China also indicates a fall of 2.5%, with the index dragged down by the actions of some banks. The index has hit a low of 5% this week caused by the government's attempt to stop excessive liquidity (due to huge loans last year) and real estate speculation.
Even the Seoul index is down today to 1, 87%.
Today’s results are suffering the knock on effect of the fall of 2% on Wall Street, the worst day since last October. Financial shares are the most affected, after Obama launched a plan to tighten the trading of banks in credit and risk and in proprietary trading, the trading that the bank carries out for itself and not for clients.
Obama said he would "be ready to fight" with the banks to limit their size and impose restrictions on their trade. "Never again - he added - will the American taxpayers remain hostages of the banks, which are too big to fall." He stressed that "the financial system today is stronger than a year ago, [but] it still operates under the same rules that led to almost total collapse."
