Change in US bail out plan results in market pessimism. Shanghai alone is positive, but China’s industrial output falls by 8.2%. Forecasts had been of 13% growth.

Hong Kong (AsiaNews/Agencies) – Tokyo’s stock exchange closed today with a loss of 5.25%.  According to analysts this is because of the US treasury decision not to bail-out “toxic” banking debts as had been promised in October.  The new strategy – outlined by Henry Paulson -  aims not only to save banks, but also credit card companies, the car industry and other areas of the financial sector, pointing to a far worse situation than was first feared.  This had dire consequences on Wall Street, which closed yesterday down 4.7%.  Asian markets have followed the US slump, falling to the lowest levels this month.

By midday the Nikkei was at minus 5.1%; Seoul, in early morning trading was down 5.9%; Hong Kong at minus 6.6%.

Taiwan was in the negative numbers for the fourth straight day, at minus 4.5%; by early morning Singapore, was minus 2.4.

Shanghai’s index alone grew by 1.6% and in the afternoon settled at 3.3%, lulled by rumours of an easing in monetary policies.

Signs of recession are however present in China.  The national statistics institute has released data on industrial production up to October, down 8.2%.  The economists had forecast a growth of 13%.

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