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Europe debt fears hit Asia stocks

Asian shares have fallen heavily as concerns about government debt levels in

some European countries continue to hit global stock markets.

Japan's Nikkei index slumped almost 3%, while stock markets in Hong Kong, Korea

and China all fell sharply.

On Thursday, the leading US Dow Jones index dropped 2.6%, while key European

markets lost more than 2%.

Debt concerns in Europe were sparked by a lack of demand for government bonds

in Portugal.

This reignited fears that countries such as Portugal and Greece would struggle

to fund their national deficits.

In the US, worse-than-expected weekly levels of unemployment benefit claims

also heightened concerns about the strength of the global economic recovery.

Euro sell-off

"What we're seeing is a wave of panic selling," said Francis Lun at Fulbright

Securities in Hong Kong.

"It's a reaction to crashing European and US markets."

The Nikkei fell 298.9 points to 10,057.1, its lowest level since early

December.

In Hong Kong, the Hang Seng fell 3.1%, while China's Shanghai Composite index

lost 2.4%.

European debt fears also hit the euro, which slid a further 4 cents, or 0.3%,

against the dollar to $1.3715 after falling more than 1.5 cents on Thursday.

"It's very bad sentiment for the euro, it's a sell-off for the euro

definitely," said Lee Sue Ann at United Overseas Bank at Singapore.