08/12/2010, 00.00
ASIA
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Doubts over economic recovery: Asian stocks and oil down

Tokyo, Hong Kong, Shanghai, Seoul, Kuala Lumpur all down. Fears of recession (and bankruptcy) in the U.S.. The appreciation of the yen over the dollar raises fears for Japanese exports. Negative signals from China. Oil prices down by almost a dollar.

Hong Kong (AsiaNews / Agencies) - Asian markets have dropped sharply as news of doubts over the global economic recovery spread.

According to analysts, Asia followed yesterday’s falls in the U.S. and Europe, after the Bank of England lowered its growth forecasts for this year and the dollar exchange rate on Japanese yen fell to its lowest value in 15 years. Added to this is data from China showing a reduction in industrial output and a growth inflation.

Two days ago the Federal Reserve issued an alarming statement on the sluggish recovery of the U.S. economy, the U.S. trade balance shows a growing deficit and now many are talking about a double figure recession. For some American analysts, the U.S. is bankrupt.

This morning, the Hong Kong stock market dropped by 1, 09% Shanghai by at least 1.03; 2.02 for Tokyo; Seoul was down by 1. 01. Even Kuala Lumpur was down.

Falls in Asia were registered hours after a drop of  2.5% on Wall Street, while the yen exchange rate on the dollar fell to 84.73. A strong yen is raising concerns about the revival of the Japanese economy and its exports.

Overnight the price of oil fell even further. In New York light crude was down by 80 cents, to 77.21 dollars a barrel, the Brent crude lost 83 cents, to 76.81 dollars.

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