» 07/12/2011 09:39 ASIA Asian stocks plummet over Eurozone debt and US “default” fear Tokyo drops 1.53, Seoul 2.2 in, Hong Kong 2, Shanghai 1.26. Yesterday, the European stock markets were all negative. The European Ministers of Foreign Affairs draw up a new plan to save Greece. Standoff between Obama and the House of Representatives continues over whether to raise the debt ceiling to more than 14.3 trillion dollars
Hong Kong (AsiaNews / Agencies) - At midday today Asia’s stock markets were all lower as the fear that the euro zone could be swallowed by the debt crisis spread, but also from concerns over the US standoff over raising debt ceiling above the figure of 14,300 billion dollars.
The Nikkei fell below 1. 53%, following losses on Wall Street, which closed yesterday in the negative with a drop of 1.2.
In Shanghai the benchmark index was down by 1.26; in Hong Kong by 1.99. The same downward trend in Kuala Lumpur, Singapore. Seoul lost 1% within the first 15 minutes and in the end closed down by 2.2%.
Yesterday, the European stock exchanges suffered heavy losses, especially Italy, with Milan, loosing 4% , 2.7 France and Germany 2.3; London dropped 1%. Also yesterday, the EU Ministers of Finance discussed a new aid plan for Greece, with a fund of 400 billion Euros, characterized by "flexibility" and "breadth".
In the United States the tug of war continues between President Obama and the House of Representatives to raise the debt ceiling and to agree on cuts and taxes in order to reduce the deficit. In a race against time, and round the clock meetings, the aim is to reach agreement ahead of an Aug 2nd deadline to avoid having to "default", which would mean being branded as insolvent by the rating agencies.
