Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Trash collection goes high tech

Read more

WEB NEWS

Web users react to escalating violence in Gaza

Read more

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

  • Live: Germany take on Argentina, Messi and World Cup history

    Read more

  • Major differences remain as deadline looms in Iran nuclear talks

    Read more

  • Germany vs Argentina - history and genius clash in World Cup final

    Read more

  • Israeli navy attacks Hamas base as tanks line up along Gaza border

    Read more

  • Germany’s Tony Martin wins ninth stage of Tour de France

    Read more

  • French military to extend Mali 'counterterrorism' operations into Sahel

    Read more

  • Boko Haram claims Nigeria attacks and supports Iraqi militants

    Read more

  • Paris’s Bastille Day fireworks ‘an homage to victims’ of WWI

    Read more

  • French court lifts mayor’s ban on Muslim hijab at beach

    Read more

  • Shells land in Russia as eastern Ukrainians flee fighting

    Read more

  • Rival Libyan militias exchange heavy fire at Tripoli airport

    Read more

  • Holland beat hosts Brazil 3-0 to finish third in World Cup

    Read more

  • Iraqi parliament fails to agree on new leadership

    Read more

  • Afghan presidential candidates agree to full vote audit, Kerry says

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

Business

Asian shares tumble over world economy fears

©

Text by News Wires

Latest update : 2010-06-30

A drop in American consumer confidence that affected US and European markets Tuesday took its effect on Asian trade Wednesday. Tokyo shares tumbled 2.13 percent, as the Nikkei slid to its lowest level since December.

AFP - Asian shares tumbled Wednesday after sharp falls on Wall Street and in Europe on US economic recovery fears and worries of a potential slowdown in China, as a strong yen hammered Japanese exporters.

European banks also plagued sentiment, with concerns about a liquidity shortfall when a European Central Bank lending facility expires Wednesday, potentially leaving institutions with funding difficulties.

Eurozone banks must repay 442 billion euros (539 billion dollars) to the ECB on Thursday, leaving a potential liquidity shortfall with borrowing costs jumping.

In Tokyo, shares tumbled 2.13 percent as the benchmark Nikkei at one point slid to 9,358.38, its lowest since December 2009.

Sydney was off 1.74 percent and Seoul slipped 1.42 percent. Hong Kong was 1.14 percent down in early trade.

"Sentiment will likely remain sour all day today," Won Jong-hyuck at SK Securities in Seoul told Dow Jones Newswires.

He added that the "sharp drop in US consumer-confidence measure in June following disappointing US housing data have deepened worries over the US economic recovery, and this will likely lead investors to sell off stocks".

Fears for the US economy were stoked when research firm The Conference Board said US consumer confidence tumbled in June after three consecutive monthly rises amid increasing economic uncertainty and unemployment concerns.

The research firm said its Consumer Confidence Index declined sharply to 52.9 points from 62.7 in May, missing expectations of a reading of 62.0.

The blue-chip Dow Jones Industrial Average tumbled by more than three percent before closing 2.65 percent lower Tuesday. Exchanges in Europe closed between 3.0 and more than 5.0 percent in negative territory.

"You've got a market that was wanting to believe that US economic recovery was sustainable, but that's falling away at the same time that Asia is moderating," Shaw Stockbroking's Jamie Spiteri said.

"And markets are increasingly illiquid this week, so that adds to the sensitivity."

Deepening the gloom was a report Tuesday that China's Conference Board economic index rose by only 0.3 percent in April instead of by 1.7 percent as originally estimated.

In Tokyo exporters were hit by the strength of the yen, damaging repatriated overseas profits and making their goods more expensive in weaker currencies. Canon tumbled 3.1 percent while machinery maker Fanuc shed 3.1 percent.

Investors awaited a Bank of Japan Tankan survey of business sentiment that will give an insight into the state of the economy Thursday, after earlier data this week showed a surprise rise in unemployment and a slide in output.

The euro continued to trade near an eight-year low against the yen at 107.98, while the Japanese unit was at 88.53 to the dollar from 88.57 late Tuesday. The single currency was at 1.2203 to the dollar from 1.2186 dollars.

 

Date created : 2010-06-30

  • STOCKS

    World stocks sink on bank funding fears

    Read more

Comments

COMMENT(S)