Asian Markets Tremble on Greek Fears

October 04 00:00 2011

NEW YORK, October 4 ( – Asian markets witnessed downward pressure in both stocks and commodities, mainly due to the concerns surrounding European debt issues.

Asian stocks and commodities experienced a heavy selling pressure on the third straight day. European markets trembled when Greek authorities said that they would not be able to meet budget deficits on time as planned. Greek may default despite of billions of Euros as rescue loans have caused a ripple effect of fear in the European market and Asian markets.

The Asian Indices Hong Kong’s Hang Seng dropped 1.6% to 16,554.03; South Korea’s Kospi Index went down 5% to 1681.91. Moreover, Japan’s Nikkei 225 Index plunged 1.4% to 8,423.06, the MSCI Asia Pacific dropped by 2.3% and Australia’s S&P/ASX 200 followed the downtrend by 0.3 percent to 3,886.70.

The San Francisco-based global chief investment strategist for the IShares unit of BlackRock Inc., Russ Koesterich said, “Investors are focused on European sovereign debt, they’re focused on European banks, and they’re worried about the end game for Greece and the possible contagion to Italy and Spain, and right now that’s trumping everything else”.