Monday, June 07, 2010

Malaise infects market as Hungary hits Euro to four year low

"Volatility is very great due to lack of confidence," Pang said, calling some investors "very fearful."

SHOOT: The recovery talk is a lot of smoke. I see the JSE has already shed 1% and touching the 26 000 level in early trade.
clipped from finance.yahoo.com

BANGKOK (AP) -- Asian stock markets tumbled Monday, dragged down by weak U.S. employment figures and fresh fears that Europe's debt crisis is spreading to Hungary.

Selling spread in Asia on fears that Europe's debt problems could spread after Hungarian officials said last week the nation was at risk of a Greek-style fiscal crisis.

The comments shocked investors, pushing the euro to a fresh four-year low against the dollar. Hungary is part of the European Union, but keeps its national currency -- the forint, which dropped around 5 percent last week.

"The problem seems like a cancerous thing -- it's spreading from smaller country to smaller country, and many people are afraid that it will spread to a big country like France or Germany, although that's unlikely," said Jackson Wong, vice president at Tanrich Securities, in Hong Kong.

"We don't have major good news on the horizon. We still have crises down the road."

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