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Asian markets slide, fears over euro and U.S. unemployment
Falls in all stock markets following heavy losses in Europe yesterday. 50% likelihood that next year will see a recession in the U.S.. Fresh concerns over sovereign debt in Europe.
Hong Kong (AsiaNews) - Today the stock exchanges in Asia were dragged down by declines in exports and banks, and a day after heavy losses in Europe of around 4%.
At noon today the index of the Tokyo Stock Exchange lost 1.23%, Shanghai 0.08, Shenzhen 0.94, Hong Kong0.94. Kuala Lumpur is also down.
Yesterday's losses were even heavier. The worst results were those of Seoul, which dropped to -4.39%, t Hong Kong -2.95, Taiwan -2.65, -Tokyo 2.38.
Analysts attribute the negative results firstly to the worsening situation of the U.S. economy. Five days ago, the U.S. jobs report revealed that the level of unemployment is still very high (9.1%) and has not changed from the previous month. This leads to fears that a recession is on the horizon. Last month, Lombard Street Research said financial market shocks increase by 50% the possibility of a U.S. recession next year.
Adding to fears about the U.S. are concerns over the situation of sovereign debt in the eurozone. Yesterday, the European currency dropped again against the dollar and the Japanese yen.