Data provided by McGregor BFA
All data is delayed
Loading...
See More

Asian markets extend losses on US fears

Nov 09 2012 13:57

Related Articles

World stocks sag on US fiscal fears

 
Hong Kong - Asian markets fell on Friday, extending their losses from the previous day as fears the United States is headed for another economic crisis sent Wall Street diving again and dealers running.

The yen remained elevated after Barack Obama's re-election as US president stoked concerns of political gridlock in Washington with a "fiscal cliff" approaching that could tip the country back into recession.

But Chinese data showing inflation at a new three-year low provided some hope, giving authorities more room to loosen monetary policy, while industrial output figures also pointed to a pick-up in the economy.

Tokyo fell 0.90% to 8 757.60 points, Sydney fell 0.49% to 4 462.0 points, while Seoul shed 0.52% to 1 904.41 points.

Hong Kong lost 0.85% to 21 384.38 points.

Shanghai ended down 0.12% at 2 069.07 points, although it was well off its earlier lows thanks to the upbeat economic figures indicating China could be emerging from its growth slowdown.

While Obama's victory over Mitt Romney removed uncertainty, traders have now turned their focus to the deep spending cuts and huge tax hikes that will come into force on January 1 if Republicans and Democrats do not reach a deal.

The package is a major threat to the economy after a protracted but possibly reckless compromise was reached last year - with the expectation a less painful plan could be agreed - to raise the country's borrowing cap.

If the automatic measures kick in, the United States' slow recovery from the financial crisis could be reversed and the nation tip back into recession, dealing a blow to the global economy.

The threat of a fiscal crisis sent Wall Street tumbling for a second day Thursday.

The Dow, which suffered its worst one-day drop of the year on Wednesday, lost another 0.94%, the S&P 500 fell 1.22% and the Nasdaq lost 1.42%.

On Friday official data showed Chinese inflation eased in October to 1.7% year-on-year, compared with 1.9% in September. The latest result represents the lowest level since January 2010.

Dealers saw the figures as providing the central bank more leeway to cut interest rates to spur the economy, which is showing signs of breaking out of a recent slumber.

Also Friday China said industrial output rose a better-than-forecast 9.6% year on year in October, while government investment surged 20% in the first 10 months of 2012.
equities  |  international markets
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

An uncomfortable election

The latter few weeks of election 2014, have seen South Africans reeling from an assault on their comfort zone when it comes to voting, writes Daniel Silke

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...