Markets dive on Greece debt woes

Asian share prices slide amid fears EU-IMF bailout package will not end crisis.

    Markets around the world have reacted nervously to the bailout plan for the Greek economy [AFP]

    Asian countries, which have pared debt since the region's 1997-98 economic crisis, will likely fare better than elsewhere if Europe's debt crisis worsens, Singapore's DBS bank said in a report.

    "One gets the feeling that the euro zone is turning out to be a basket case and of course rumours about Spain and Portugal's sovereign debt isn't helping"

    Jonathan Cavenagh, currency strategist, Westpac, Sydney

    "Volatility and some degree of contagion still looks likely until the situation in Europe is clarified," the bank said, according to the Associated Press.

    "Thank goodness Asia has spent the last 10 years paying down its foreign and public debt."

    "Asia's fundamentals on public and foreign debt should help it weather the storm with relative ease."

    In Athens, striking public workers challenged Greece's €110bn ($146.5bn) bailout-for-austerity deal, starting a 48-hour national strike that shut down ministries, tax offices, schools, hospitals and public services.

    Investors are also worried Spain and Portugal may need even larger debt bailouts.

    "One gets the feeling that the euro zone is turning out to be a basket case and of course rumours about Spain and Portugal's sovereign debt isn't helping," Jonathan Cavenagh, a currency strategist at Westpac in Sydney, told Reuters.

    "I suspect the market wants to take the euro to as low as $1.25 in the short term."

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Unification: Saladin and the Fall of Jerusalem

    Unification: Saladin and the Fall of Jerusalem

    We explore how Salah Ed-Din unified the Muslim states and recaptured the holy city of Jerusalem from the crusaders.