Tokyo, Seoul and Shanghai also slide. A further reduction in China's industrial output. The Fed is going to reduce stimulus of the U.S. economy.

Hong Kong (AsiaNews) - The Hong Kong Stock Exchange has fallen to its lowest level in nine months, followed by other Asian stock markets, on fears that the Fed is set to reduce stimulus of the economy and signals coming from China where industrial production fell by another point in June.

In the late morning, the Hang Seng Index was at - 2.5%, falling below the - already very low - value of last September. The index of Chinese companies listed in Hong Kong fell by 3.2%.

According to a HSBC forecast, China's industrial production in June, will fall further to 48.3, after a poor result of 49.2 in May (last October it was at 50).

At mid-day Tokyo was at - 1.04; Shanghai - 0.77, Seoul -0.91.

In a highly anticipated speech last night, Federal Reserve chairman Ben Bernanke said that if the economy continues to grow, the Fed will reduce the stimulus which in recent years has allowed the U.S. economy to reduce the disastrous effects of the crisis. Bernanke cited "moderate" good results: according to official forecasts, the economy will grow by 3-3.5% in 2014, bringing unemployment to 6.5%. But economists contacted by Bloomberg forecast a growth of 1.9 this year and 2.7 in 2014.

 

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