Kong (AsiaNews/Agencies) - Asian stock markets fell on Monday amid fears of the
ongoing debt problems in the eurozone and slower Chinese growth forecast.
Kong's Hang Seng Index (HSI) fell 3 per cent, China's Shanghai Composite Index
retreated 1.3 per cent, Japan's Nikkei 225 Stock Average declined 1.9 per cent whilst
South Korea's Kospi Index (KOSPI) slid 1.8 per cent.
euro slipped to 94.73 yen after touching 94.63, the lowest in 12 years.
reflect the fragility of the eurozone, made worst by Spain's heavily indebted Valencia region, which asked the central
government for financial help to avoid bankruptcy.
The yield on Spanish 10-year bonds shot up above 7 per
cent, a level that is untenable.
The eurozone is a key market for Asian exports and there
are concerns that demand from the region may decline in the near term.
To the already difficult situation, the Japanese
government added the opinion that the global economy is cooling.
"The slowdown in the global economy is becoming more
widespread," the Cabinet Office said in a monthly report released in Tokyo
Song Guoqing, an academic member of a monetary policy
committee with China's central bank, said that China's growth will slow down
"The consensus is that China's economic growth rate
will be close to 8 per cent in coming months, but I personally am more
pessimistic because there are problems on the export side," Song said at a
forum in Beijing on Saturday. In his view, China's growth may be 7.4 per cent.
The end of the month should also see the release of US
figures. All expectations are for slower growth.