Hong Kong (AsiaNews / Agencies) - Asian markets have all fallen in trading today and many analysts indicate the probable cause in the outcome of the Italian elections in which no party won a clear majority in the Senate, opening a period of probable political deadlock. The fear is that the Italian vote signals a rejection of the so-called "austerity" thus far ensured under Prime Minister Mario Monti, and that debt problems will return to plague the eurozone.
At 1pm today, the Nikkei was down 2.3%, the Australian Stock Exchange by 0.9, Seoul 0.7, Hong Kong by 0.8, Taiwan 0.5, Singapore 0.6. In contrast, Shanghai was up by 0.4.
Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo, interviewed by Reuters, states however that "A safety net has been provided over the past year in the euro zone and given the size of Italy's economy, [the third largest in the European Union - ed], I doubt that the situation will turn into a disaster, but we need to carefully monitor developments".
International market fears are also the result of other data. First, the drop in industrial production in China. The February, PMI (Purchasing managers' index) showed 50.4, one of the lowest in two years. Another element that creates instability is the Japanese yen, subject to devaluation, which this morning lost 0.8 and 0.7 against the dollar against the euro.
There is also concern ahead of moves by the Federal Reserve, whose chief Ben Bernanke today should clarify whether he will continue, reduce or stop the policy of a heavy monetary stimulus for the American markets.