Asian markets sink on China, eurozone jitters


AFP

HONG KONG–Asian stocks mostly fell Tuesday amid jitters across world markets, with Shanghai suffering another dramatic plunge on worries about possible monetary tightening measures. Shanghai ended the day down 3.98 percent, or 119.88 points, at a one-month low of 2,894.54, Tokyo’s Nikkei index closed down 0.31 percent, or 30.41 points, at 9,797.10 and Hong Kong’s Hang Seng fell 1.39 percent, or 334.16 points, to 23,693.02. However Sydney ended up 0.26 percent, or 12.3 points, at 4,700.3 as the Aussie dollar crept back towards parity with the U.S. unit, after resurgence by the greenback following this month’s Federal Reserve stimulus. After falling more than five percent on Friday, Shanghai clawed back some ground on Monday but resumed its fall Tuesday after the governor of the Chinese central bank voiced unease at last week’s inflation figures for October and the effects of U.S. stimulus measures. Inflation hit 4.4 percent from a year earlier. “There have been some lingering jitters over further monetary tightening measures, and with Chinese investors extremely sensitive to policy changes, some may have chosen to withdraw to the sidelines until there is more clarity,” Zhang Gang, analyst at Central China Securities, told Dow Jones Newswires.

World markets have grown nervous due both to the eurozone’s debt troubles and criticism, including from China, of the U.S. Federal Reserve’s 600 billion dollar stimulus package. Wall Street put in a lackluster performance on Monday despite robust US retail sales figures for October, while traders generally were looking ahead to a meeting of European finance ministers on Wednesday.