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Entries in Asian Markets (3)

Monday
Aug082011

Asian Markets Down as Investors React to US Credit Downgrade

Hemera Technologies/Thinkstock(TOKYO) -- Asian markets tumbled at the open Tuesday, extending losses across the board and prompting fears of a recession after witnessing the economic crisis gripping the United States.

The Nikkei was down four percent in the first hour of trading, falling below the key 9,000 line for the first time since the March disasters.

Key indexes across Asia fell between two and five percent, as concerns about the U.S. credit rating downgrade continued to weigh on investors.

Copyright 2011 ABC News Radio

Monday
Aug012011

Asia Markets Rally with News of U.S. Debt Deal, but Doubts Remain

Comstock/Thinkstock(BEIJING) -- News of an agreement on a U.S. debt deal was met with a sigh of relief from Asian markets, with Japan and South Korea’s primary indexes up over 1% and the dollar raising sharply against the yen. But for China, the U.S.’s largest creditor, it has been a nail-biting wait. While a doomsday default scenario has likely been avoided, many are asking if the damage is already done; a cursory glance at China’s newspapers and online news forums would seem to indicate that answer is yes.  

One Internet user wrote on Sina.com, "Nations that have U.S. treasury bonds are trapped. It's like a blood transfusion. If you don't do it, it will die and your debt assets will be washed away; but if you go on doing it, you'll be bogged down even further, and in the end your debt assets will still be washed away."

For now, China has little option but to sit tight: any mass selling of their dollar-denominated assets would further weaken the dollar, therefore diminishing the value of their investments.

Copyright 2011 ABC News Radio

Friday
Nov122010

Obama in Japan: Asian Markets Critical to Economic Growth, Job Creation 

Photo Courtesy - Getty Images(YOKAHAMA, Japan) -- On his last stop of his 10-day Asian tour, President Obama said that that America’s security and prosperity is “inextricably linked” to that of Asia and increasing U.S. exports will create American jobs.

“In today’s interconnected world, what happens in Japan or China or Indonesia also has a direct effect on the lives and fortunes of the American people,” he said at the APEC CEO summit in Yokahama, Japan.

The president said his goal of doubling U.S. exports in the next five years is directly related to job creation in America.

“With every $1 billion we sell in exports, five thousand jobs are supported at home,” he said. “And jobs supported by exports pay up to 18 percent higher than the national average.”

Yet the president failed to find support.  The president failed to convince the South Koreans to open their markets to American beef and cars - at stake $10 billion in exports and 70,000 American jobs. He failed to push Chinese President Hu Jintao to change policies that make it cheaper to manufacture in China by artificially building up the dollar and holding down Chinese currency.  And with a $227 billion dollar trade deficit with China, Mr Obama was unable to convince the other G20 leaders to agree to use stronger language on currency manipulation in the joint declaration or firm actions on trade imbalances.

Mr. Obama once again warned that nations with large trade surpluses cannot depend on exports to U.S. consumers, noting that the recent economic crisis taught a harsh lesson on the limits of that strategy.

“Going forward, countries with large surpluses must shift away from an unhealthy dependence on exports and take steps to boost domestic demand,” he said. “No nation should assume that their path to prosperity is simply paved with exports to America.”

Copyright 2010 ABC News Radio







ABC News Radio