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Asian stocks fall in the fear of recession
Seoul - 4; Hong Kong -1.67, Taipei - 3; Manila - 5.13: following the downward trend of European markets and Wall Street. Disappointment at the lack of a new QE in the U.S.. The G20 countries promise an "action plan" by November.
Hong Kong (AsiaNews / Agencies) - All the Asian markets register sharp drops, while fears of a global recession are growing. Seoul lost 4% at midday Hong Kong at mid-day was minus 1.67, down to 0.91 Shanghai, Taiwan minus 3; Tokyo is closed for national holiday. Manila has sunk to minus 5.13, Singapore and Bangkok are also in the negative.
The heavy falls in Asia follow the many heavy losses yesterday in Europe and the United States.
Analysts say the crash was caused by the statements of the Federal Reserve, according to which the U.S. is facing "significant downside risks", with the economy marked by slow growth, high unemployment and a depressed housing market. The Fed announced a 400 billion dollar plan to support the economy, very different from the previous and huge QE (quantitative easing, massive injections of liquidity into the market).
To stop the descent of the economy, the finance ministers of the G20 countries, gathered in Washington yesterday, have decided to intensify cooperation, preparing an "action plan" by November.