Eurozone uncertainty hits Asian stock markets
Tuesday 19 June 2012
Asian stock markets were mostly lower today, as relief from Greece's election results evaporated amid worries that the financial crisis in the 17 nations that use the euro was far from over.
A narrow victory by Greek conservatives, who favour upholding an austerity programme that their country entered into in exchange for an international bailout, initially relaxed fears of a chaotic exit by Greece from the eurozone.
But now the focus is back on Spain, whose borrowing costs surged yesterday above the 7% level that had forced Greece, Portugal and Ireland to seek international help.
The rate reflects what return investors are willing to accept when a country auctions its bonds.
Spain's high bond yields are a sign that investors are increasingly concerned that the country will struggle to save its crippled banks.
Japan's Nikkei 225 index fell 0.4% to 8,689.79. Hong Kong's Hang Seng Index lost 0.5% to 19,325.19 and Australia's S&P/ASX 500 lost 0.5% to 4,1187.60. South Korea's Kospi was 0.1% down at 1,888.88.
Investors appeared fed up with the inability of European leaders to resolve a financial crisis that has bedeviled markets for more than three years. Leaders of the most developed countries are meeting in Mexico to discuss the crisis and the sluggish global economy.
On Wall Street, the Dow Jones industrial average closed down 0.25 at 12,741.82. The Standard&Poor's 500 index rose 0.1% to 1,344.78. The Nasdaq composite index rose 0.8% to 2,895.33.
Benchmark oil for July delivery fell 11 cents to 83.16 dollars per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 76 cents to finish at 83.27 dollars per barrel.
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 Friends 20th anniversary: The highs and lows of the cast's careers since 2004
- 4 The response to my Pizza Express review has been overwhelming, and taught me a lot about journalism
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence: Despite defeat history may still point to Alex Salmond as the victor
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Glasgow 'riots': 'Dishonest' social media users accused of fuelling panic with pictures from London riots
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...