Go Finance Reporting in HONG KONG - Worries in the euro-zone interest euro to a record low against the Swiss franc. As a result, the flow of funds into riskier assets such as Asian stocks fell and switch to safe-haven investments like U.S. government bonds and gold.
The euro was under renewed selling pressure after Fitch Ratings cut Greece's debt ratings for the third time. This is increasingly making the country worse. While Standard & Poor's cut the outlook for Italy to "negative" from the previous "stable".
The flow of bad news out of the euro zone and the resultant weakening of economic data in the U.S. also make Asian stocks weakened.
"Concerns continue to slump in U.S. stock market led investors step carefully about the background of a severe global economy, and this will continue until June," said a market analyst at Hyundai Securities, Bae Sung-young, as quoted by Reuters on Monday (05/23/2011).
Japan index, the Nikkei index and Australia fell more than one percent. Seoul shares down nearly two percent, led by a decline in shares of Hyundai Motor and Kia Motors due to a strike at one supplier that disrupted production tails. Outside Japan, MSCI's index of Asia Pacific stocks fell 1.7 percent.
U.S. Treasury rose to 3.12 percent immediately, whereas previously fell 3.15 percent. Gold prices also now park in the level of USD1.506, 5 per ounce. (GoFinance)
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