[加拿大新聞] Asian markets tumble on China data, eurozone fears economic, growing, rating, agency

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Asian markets tumble on China data, eurozone fears
  AFP October 18, 2011 7:10 AM

HONG KONG — Asian markets sank Tuesday after China posted lower-than-expected economic growth, while ratings agency Moody's warned France it may lower its credit rating amid growing eurozone debt worries.

Tokyo closed 1.55 per cent lower, or 137.69 points, to 8,741.91, Sydney slumped 2.07 per cent, or 88.5 points, at 4,186.9, while Seoul's benchmark index lost 1.41 per cent, or 26.28 points, to finish at 1,838.90.

Hong Kong was 3.97 per cent lower in afternoon trade, with Chinese shares off 1.73 per cent after Beijing said third-quarter gross domestic product growth slowed to 9.1 per cent, and factory output growth fell slightly in the first nine months of the year.

"If the (third quarter) GDP growth reading was 9.2 per cent or 9.3 per cent, the market may think it's acceptable, but 9.1 per cent looks worrisome," said Qian Qimin, an analyst at Shenyin Wanguo Securities.

The figures would likely stoke concerns that a slowdown in orders from the U.S. and Europe was denting the world's second-biggest economy, as Beijing also works to fight stubbornly high inflation.

The broad drop across the major regional stock markets reversed an Asian rally Monday largely driven by a weekend meeting where Europe vowed to its G20 partners to take swift and decisive action on tackling its debt crisis.

European and U.S. markets lost ground Monday amid warnings from Germany against putting too much hope that an EU summit this weekend will produce a comprehensive solution to Europe's fiscal woes.

Berlin sought to dampen expectations for Sunday's European Union summit in Brussels, with government spokesman Stefan Seibert warning that "dreams that everything will be resolved and dealt with by next Monday cannot be fulfilled".

Finance Minister Wolfgang Schaeuble said that decisions would be part of "important measures to be taken over the long term, and this long term is likely to last into next year".

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The tone was a marked change from the weekend when, speaking after a meeting of G20 finance ministers and central bankers in Paris, French Finance Minister Francois Baroin said the eurozone answers at the summit would be "decisive".


Ric Spooner, chief market analyst at CMC Markets in Sydney, said the latest news from Europe was "another indication of the political obstacles to forging a workable solution for the eurozone".


"Investors have been reminded of the need for caution until details of any proposal are formally released and agreed on," he told Dow Jones Newswires.


The market was also spooked by Ratings agency Moody's warning to France that it may place a negative outlook on its cherished Aaa credit rating in the coming months, saying the government's financial strength "has weakened".


The annual credit report is a shot across the bow for the second-largest economy in the eurozone, which currently enjoys the top credit rating from Moody's and rival ratings agencies.


The warning comes just days after Standard and Poor's downgraded Spain's credit rating, citing sky-high private debt, weak economic growth and towering unemployment.


The euro edged up to $1.3779 and 105.84 yen in Tokyo trade from $1.3734 and 105.51 yen in New York late Monday.


The dollar stood at 76.81 yen, almost flat from 76.82 yen.


New York's main oil contract, light sweet crude for delivery in November, was down eight cents to $86.30 per barrel Tuesday, while Brent North Sea crude for December delivery inched up five cents to $110.21 in volatile trading.


By 0630 GMT, gold was trading at $1,666.55 an ounce, down from $1,671.25 earlier Tuesday.


— In other markets —


— Taiwan's weighted index fell 101.64 points, or 1.36 per cent, to 7,359.48.


Hon Hai fell 1.07 per cent to Tw$74.2 while TSMC was 0.56 per cent lower at Tw$70.7


— Philippine shares closed 1.36 per cent lower, or 57.19 points, at 4,157.26.


Top-traded Alliance Global fell 1.40 per cent to 9.88 pesos, Lepanto Consolidated Mining dropped 4.38 per cent to 1.31 pesos, while SM Investments Corp. lost 1.55 per cent to 540.50 pesos.




Asian markets sank Tuesday after China posted lower-than-expected economic growth, while ratings agency Moody's warned France it may lower its credit rating amid growing eurozone debt worries.