Asian stocks plunge as euro falls to four-year low
Tuesday, 18 May 2010
SINGAPORE, May 17 (Economic Times): Asian stock markets tumbled Monday on investor concern the Europe debt crisis will worsen as the euro fell to a four-year low.
Investors weren't convinced last week's one-trillion-dollar bailout package will keep a sovereign debt crisis from spreading from Greece to other European countries.
In an interview with German newspaper Der Spiegel to be published Monday, European Central Bank President Jean-Claude Trichet said Europe's economy ``is in its most difficult situation since World War II or perhaps even since World War I.''
"The market is concerned that the euro could trigger another financial crisis,'' said Linus Yip, a strategist with First Shanghai Securities in Hong Kong. "I don't think that's likely, but that's the fear out there.''
The euro fell to $1.2271 Monday, the lowest since 2006, from $1.2352 Friday.
Japan's benchmark Nikkei 225 stock average dropped 260.36 points, or 2.5 per cent, to 10,202.15, while South Korea's Kospi lost 2.8 per cent to 1,648.04 and Australia's S&P/ASX 200 index was down 2.6 per cent at 4,491.30.
China's benchmark index in Shanghai tumbled 3.6 per cent, Hong Kong's Hang Seng index lost 2.5 per cent, India slid 2.3 per cent and Thailand sank 2.8 per cent.
Asian investors are concerned that cost-cutting fiscal measures being taken by Greece, Portugal and Spain could hamper a recovery in the eurozone economy and undermine export demand.
On Wall Street Friday, the Dow Jones industrial average fell 162.79 points, or 1.5 per cent, to 10,620.16.
In currencies, the dollar edged down to 91.88 yen in Tokyo from 92.30 yen in New York late Friday.
Investors weren't convinced last week's one-trillion-dollar bailout package will keep a sovereign debt crisis from spreading from Greece to other European countries.
In an interview with German newspaper Der Spiegel to be published Monday, European Central Bank President Jean-Claude Trichet said Europe's economy ``is in its most difficult situation since World War II or perhaps even since World War I.''
"The market is concerned that the euro could trigger another financial crisis,'' said Linus Yip, a strategist with First Shanghai Securities in Hong Kong. "I don't think that's likely, but that's the fear out there.''
The euro fell to $1.2271 Monday, the lowest since 2006, from $1.2352 Friday.
Japan's benchmark Nikkei 225 stock average dropped 260.36 points, or 2.5 per cent, to 10,202.15, while South Korea's Kospi lost 2.8 per cent to 1,648.04 and Australia's S&P/ASX 200 index was down 2.6 per cent at 4,491.30.
China's benchmark index in Shanghai tumbled 3.6 per cent, Hong Kong's Hang Seng index lost 2.5 per cent, India slid 2.3 per cent and Thailand sank 2.8 per cent.
Asian investors are concerned that cost-cutting fiscal measures being taken by Greece, Portugal and Spain could hamper a recovery in the eurozone economy and undermine export demand.
On Wall Street Friday, the Dow Jones industrial average fell 162.79 points, or 1.5 per cent, to 10,620.16.
In currencies, the dollar edged down to 91.88 yen in Tokyo from 92.30 yen in New York late Friday.