Asian stocks fall after the elections in France and Greece
Hong Kong (AsiaNews) - The Asian markets have all registered losses - the
largest in six months - after the election results in France and Greece, with
the victory of anti-austerity parties. The euro has
lost value against the dollar and the yen.
In
the early afternoon, the Nikkei was minus 2.75%, Hong Kong minus 2.43, Seoul minus
1.81; Shanghai minus 0.26. Even
Sydney and Wellington losses of minus 1.84 and minus 0.38.
The
euro fell 0.9%, and traded at 1.2981 U.S. dollars in the early afternoon, and
at 103.55 yen. The European
currency fell to its lowest value since January.
Banks
and analysts were quick to say that the cause of the fall of the markets are
the election results. Francois
Hollande, the first Socialist in 17 years, will now lead France, the second
largest economy in Europe, winning in a runoff against Nicolas Sarkozy. Hollande
had focused his campaign on the rejection of greater austerity measures, to
support growth. The
vote in Greece favoured parties opposed to the austerity measures imposed by
the government to rectify the abysmal public debt, which has already twice needed
the intervention of Europe.
Yesterday,
even Angela Merkel's part suffered a loss, while retaining 30% of the vote in
Schleswig-Holstein, a dangerous signal ahead of the elections next year.
Kintai
Cheung, Crédit Agricole, said in a statement that "the growing influence
of anti-austerity political blocs, in all likelihood will intensify the tension
in the eurozone, and could open new negotiations on debt consolidation
programs."
In
the global market feelings of anxiety were already high after Washington
published employment data last May 4, with only 115 thousand new jobs, less
than expected.
Attempts
- so far unsuccessful - to come out of the crisis is changing the political
landscape of Europe. From
2009 -2010 the ruling political leaders have gradually been punished by the
electorate. Before
France and Greece, there were changes in Spain, Italy, Ireland, Great Britain,
Portugal, Denmark.
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