Tags: Asian | stocks | world | markets

Asian Stocks Plunge on Europe Debt Crisis Setbacks

Wednesday, 09 Nov 2011 09:37 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

BANGKOK — Setbacks in Europe's efforts to isolate a debt crisis before it blows up into an all-out recession sent Asian stock markets tumbling Thursday.

Japan's Nikkei 225 index fell 2.1 percent to 8,569.79 while Hong Kong's Hang Seng index plummeted 4.1 percent to 19,189.30. South Korea's Kospi dropped 2.6 percent to 1,858.58 and Australia's S&P ASX 200 lost 2.7 percent to 4,230.80.

The losses in Asia tracked those in New York, where the Dow Jones industrial average fell almost 400 points, its worst decline since Sept. 22.

Global stock markets were rattled Wednesday, when Italy's borrowing costs blew past 7 percent. That was considered an important level because Greece, Portugal and Ireland required bailouts from other nations when their bond yields hit 7 percent.

While Greece has been the focus of the debt crisis for two years, Italy has recently become of greater concern because it has the third-largest economy in Europe — and because its debt, at $2.6 trillion, is too large for other European countries to absorb.

Power-sharing talks in Greece aimed at avoiding a default on its debts broke down in chaos Wednesday. Markets fear that a Greek default would lead to huge losses for European banks. That could cause a global lending freeze similar to what happened after the investment house Lehman Brothers fell in 2008.

The Dow finished down 389.24 points, at 11,780.94, its worst decline since Sept. 22. The S&P 500, the broadest major stock index, closed down 3.7 percent, or 46.82 points, at 1,229.10 — its worst day since Aug. 18. The Nasdaq composite index lost 3.9 percent at 2,621.65.

European stock markets fell sharply, too. The main stock index in Italy finished the day down 3.8 percent. The DAX index in Germany and the CAC-40 in France each declined 2.2 percent.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Report: US-Russia Trade Increased After Sanctions

Tuesday, 29 Jul 2014 13:51 PM

The Obama administration's economic sanctions aimed at punishing Russia for its involvement in the Ukrainian conflict ma . . .

Lawmakers Prepare Resolution Against Obama Over Bergdahl Swap

Tuesday, 29 Jul 2014 13:34 PM

A deal is near from both sides of the political aisle on a resolution directed at President Barack Obama's deal to relea . . .

Boehner Dismisses Obama Impeachment Talk

Tuesday, 29 Jul 2014 13:08 PM

Republicans have no plans to begin impeachment proceedings against President Barack Obama, House of Representatives Spea . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved