HONG KONG: Asian shares fell in early trade Monday as markets awaited details of plans to fix Europe’s debt crisis and the outcome of key Sino-US trade talks, with tensions between the economic superpowers.
Tokyo edged down 0.09 percent, Sydney lost 0.73 percent, Seoul was down 1.13 percent while Hong Kong was off almost 2.0 percent. Chinese shares fell into negative territory, trading 0.20 percent lower.
Markets also reacted to news Japan logged an unexpected trade deficit in October, while business hub Singapore predicted sharply lower economic growth next year — and warned a weaker global economy could worsen the situation.
“It’s a brand new week but the same old concerns hover over financial markets,” said Tim Waterer, senior foreign exchange dealer at CMC Markets in Sydney.
“Debt debacles on both sides of the Atlantic continue to halt any potential uprising of brighter sentiment from traders.”
The European Commission will publish legislative proposals for common eurozone bonds on Wednesday in the latest bid to contain the debt crisis, which has threatened to plunge the world economy into recession.
New rules would see troubled eurozone states effectively club together to guarantee each other’s debts and police national budgets to keep the region’s fiscal woes in check.
The proposals have been designed to combat nearly two years of regional turmoil after bailouts for Greece, Ireland and Portugal, and with even France now facing mounting pressure going into a presidential election year.
Governments have been deposed by economic turmoil in several nations, with Spain’s conservative Popular Party sweeping to victory Sunday in a general election with rising concerns about the country’s ability to finance its debts. (AFP)
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