ASIAN SHARES FELL AFTER G20 MEETINGS
Asian shares were lower Monday (September 26) after G20 meetings over the weekend left investors jittery about European leaders' next moves. Markets opened higher amid reports of European policymakers working on additional measures to stop the fallout from Greece's near-bankruptcy from damaging the world economy. But selling pressure quickly returned, with Credit Agricole CIB's Frances Cheung saying actual details from Washington are lacking.
CREDIT AGRICOLE CIB SENIOR STRATEGIST, FRANCES CHEUNG: "During the weekend meetings, actually there has not been any concrete measures to try to improve the debt situation in Europe. So overall, it is still a risky environment, so it's kind of a sell on value on any Asian assets." [2]Japan's Nikkei index fell more than 2 percent to a six-month low, with trading companies bearing the brunt of the sell-off after crude oil futures fell to six-week troughs on Friday (September 23).
Hong Kong shares were dragged down by the territory's property names, with Hong Kong conglomerate Swire Pacific losing over 5 percent. In Seoul, the Kospi index gave up earlier gains and fell more than 3 percent, as persistent volatility in the local forex market and euro zone caution kept investors at bay.
Australian shares also fell, down one percent led by mining stocks, after commodity prices tumbled on fears that a global recession will sap demand.Gold slipped further, after sliding a record $100 an ounce on Friday, with safe haven seekers abandoning the precious metal in favour of the dollar and U.S. Treasuries.The euro continued its decline against the dollar and the yen, once again under pressure amid growing expectations of a Greek default.
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