» 07/22/2010 09:23 ASIA Bernanke’s "uncertainties" slow Asian stock markets down Negative indexes in Tokyo, Hong Kong, Seoul, Taipei, Singapore, Jakarta. For the Fed chairman U.S. prospects are "unusually uncertain". China should revalue the Yuan by 10-30%.
Tokyo (AsiaNews / Agencies) - All the Asian markets slipped today, following Ben Bernanke’s statements yesterday of a weakening of the U.S. economy. Before a congressional committee, the chairman of the Federal Reserve said U.S. economic prospects are "unusually uncertain." He also said that the economy is fragile, but did not mention recession.
Wall Street closed down last night (minus 1.1), Asian markets responded today with stock markets in the negative. Tokyo at noon was down 0.7; Hong Kong minus 0.3, minus 0.4 Seoul. Even markets in Taiwan, Singapore and Indonesia have fallen.
Bernanke also said yesterday that the value of the Yuan currency should be raised by between 10 and 30%. Keeping the value of the Yuan low is equivalent to a "subsidy" for Chinese exports.
Last year, the Treasury secretary, Timothy Geithner had accused China of "manipulating" its currency, to beat international competition in exports.
Bernanke, however, advised Congress not to take action against China. Several parliamentarians in fact want laws that would require China to revalue the Yuan soon.
After years of fixed exchange rate with the dollar, China has corrected the value of its currency, but raising it by very little compared to the past.
