September 12th, 2011
06:31 AM GMT
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(CNN) – The global sell-off that began Friday continued as Asian markets opened Monday, despite weekend assurances that a Greek debt deal was imminent.

The euro was trading at its lowest level against the yen since 2001, as Bloomberg reported Germany was preparing for a possible default by Greece.

"We are watching Greece, and only Greece," said Satoshi Tate, a senior dealer at Mizuho Corporate Bank told the Wall Street Journal. "Conditions are getting very serious and everyone is worried how the issue will unfold."

Senior European officials scrambled to reassure financial markets with a Sunday announcement from Athens on a plan to skirt debt payment default with a property tax increase.

"We have made the decision to give a battle to avoid a disaster - a disastrous bankruptcy for the country and the citizen," Greek Prime Minister George Papandreou said Saturday.

Investors were unconvinced. By noon Monday the Hang Seng index in Hong Kong was down 3.3%, and industries sensitive to a slowing global economy are feeling the biggest hits: Shipping, oil and banks were all lower.

Japan’s Nikkei was down more than 2% and headed to its lowest level since April 2009, sunk down by sagging shares of powerhouse exporters like Honda, Toyota, Nissan, Panasonic and Sony.

The sell-off began Friday after Juergen Stark resigned from the European Central Bank board, signaling uncertainty about the management of the bloc’s monetary policy, the Financial Times reported.

-CNN's Ramy Inocencio contributed to this report



soundoff (13 Responses)
  1. lolface

    The entire market is a joke, it is a mood ring for the rich. If anyone ever looked at who really buys the majority of stocks you would notice it is less than 1 million people worlwide because that is how small the window of wealth is.

    September 12, 2011 at 4:24 pm |
  2. Canuck Report

    FLAHERTY ON GREECE: "They have a plan to control deficits and debt. They have to implement it" ... http://canuckreport.ca

    September 12, 2011 at 5:28 pm |
  3. goldtracker

    When will politicians move back into the world of sanity where they recognize that being in debt and jumping further into debt is not the answer? This is sheer insanity.

    September 12, 2011 at 8:53 pm |
  4. george argiriou

    THIS IS THE TIME 4 PEOPLE 2 HELP 1 AN OTHER.HERE HUMANITY MUST MAKE A STAND AND HELP ITS OTHER.IF GREECE GO DOWN THE GAME IS OVER.THE MONEY TODAY HAS THE NATURE TO GET SMALLER AND SMALLER.IF WE (THE ALL WORLD) DON'T MAKE A STAND THE MONEY WILL BE NOT ENOUGH 4 ANY COUNTRY.I AM NOT AN ECONOMIST BUT I KNOW THAT THE WORLD MONETERY SYSTEM NEEDS A NEW TOOL 2 HELP THE PEOPLE OF THE WORLD.IT IS THE TIME 4 THE IMF 2 ESTAMBLISE THAT NEW TOOL.

    September 12, 2011 at 9:59 pm |
  5. Carl van Zijll de Jong

    It is very obvious that Greece will go under, and so will all the other economies around the globe when the refuse to arrange the economy according to what the “Laws of Economics” dictates. For your information Google “The World Monetary Order”.

    September 13, 2011 at 12:43 am |
  6. Lucke

    I'm sure the Greeks will come out with a new Trojan Horse!!! They are very smart. Bet your money there; not mine.

    September 13, 2011 at 8:31 pm |
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    90% accuracy is now a reality, thanks to the secret code for the oil market. No registration required, just show up at the demonstration room, and watch for your own eyes a 90% accuracy rate trading the oil market, that's right, you can make as much money as you want trading the oil market if you simply know the secret code for it. If you don't believe that then why not just show up to the FREE demonstration? What have you got to lose? Google Oil Trading Academy.

    September 14, 2011 at 8:11 am |
  8. R William Holmes

    Greece will default. SDRs will replace the dollar. Market volatility will continue until it bottoms temporarily at 9000.

    September 15, 2011 at 2:24 pm |
  9. R William Holmes

    Greece will default. SDRs will replace the dollar. Market volatility will continue until it bottoms temporarily at 9000. The insulated economies will fair best ie Russia,India. 2012 will usher in austerity and collapse of EU.

    September 15, 2011 at 2:30 pm |
  10. E vanS

    How long will 8 billion sustane Greece untill this happens again, considering the economy is not going up any time soon? And how will other countries dump their holdings of Greece's debt when they see it coming?

    September 21, 2011 at 2:38 am |
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