Nov. 15 - Asian shares fall Tue (November 15), giving up all of the previous day's gains, amid doubts about the ability of new leaders in Italy and Greece to push through painful reforms. Arnold Gay reports.
Asian shares fell Tuesday (November 15), giving up all of the previous day's gains, amid doubts about the ability of new leaders in Italy and Greece to push through painful reforms. Jittery European credit markets pushed bond yields to near record levels, hurting sentiment in Asia, and sending regional shares down by one percent. Markets were also awaiting euro-area GDP data due later Tuesday, to help gauge how badly the euro region's economy has been affected by the debt crisis. Rabobank's Adrian Foster says selecting the new leaders was the easy part. (SOUNDBITE) (English) RABOBANK'S HEAD OF FINANCIAL MARKETS RESEARCH, ADRIAN FOSTER, SAYING: "We've seen political transitions in both Greece and Italy, but that was always going to be the easy part of the equation, because the difficult part is the austerity that is required, just to pull these fiscal accounts into better shape." Japan's Nikkei 225 lost nearly three-quarters of a percent led by its consumer technology exporters, while Hong Kong's Hang Seng index shed over one percent as banking plays reacted to the sharp downturn in financial markets. Market heavyweight HSBC tumbled over 1.5 percent while Standard Chartered lost more than four percent. China Construction Bank (CCB) fell two percent on news Bank of America would be selling most of its CCB remaining stake to raise capital, but the stock later recovered after CCB said its performance would not be affected by the sale. Arnold Gay, Reuters.