Nov 15
The enthusiasm was short-lived. Asian markets, which had welcomed yesterday the political changes in Italy, switch back into the red on Tuesday. The concern around European sovereign debt increases with the lines, the fear of spreading to other countries as Greece. The fears are rooted in the rising bond yields recorded yesterday in Spain and Italy. Spanish borrowing rate to 10 years rose to 6.082% (it did not exceed the critical threshold of 6% since early August), while a debt issue in Italy took place at rates above 6% for securities maturing five years. In Greece, the Prime Minister's speech Lucas Papademos, who promises to reduce government debt at 9% of GDP in 2011, is not enough to reassure.
In this context, the Japanese Nikkei ended the session down 0.72% to 8541.93 points.The broader Topix index has in turn reduced by 0.67% to 730.91 points. "We need to stabilize the situation in Greece, Italy and Spain for the Nikkei rebound," said Fumiyuki Nakanishi, a broker at SMBC Friend Securities. The export sector has been especially battered because of the renewed weakness of the dollar against the yen. The greenback fell in the early morning under the threshold of 77 yen before slightly recover. Elpida unscrews to 8.54%, 1.46% of Sony and Sharp 1%. Bank stocks are also in the red in the image of Resona (-1.45%) and Aozora (-3.13%). Only Olympus has distinguished himself on the rise: the title continued to climb started the day by winning 18.51%, the maximum allowed for the day.
In China, Hong Kong and Shanghai respectively unleash 19,295 points to 1.09% and 0.23% to 2522 points. Spirit takes the rating down (-3.10%) in Hong Kong, as Foxconn (-1.37%).
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