16 January 2012 11:08 [Source: ICIS news]
(adds comments from IMF executive, closing levels of indices)
SINGAPORE (ICIS)--Shares in Asian petrochemical companies closed lower on Monday on concerns over a worsening debt crisis in Europe, where nine countries have been issued with ratings downgrades from US credit ratings agency Standard & Poor’s (S&P).
Exports from the region will take a heavy beating if another recession were to hit the
In South Korea, Kumho Petrochemical slumped by 3.37%, Hanwha Chemical fell by 2.65% and energy and chemical group SK Innovation eased by 0.64% as the KOSPI composite index dipped by 16.41 points, or 0.87%, to settle at 1,859.27.
The China Shanghai composite index also settled 38.39 points lower, or down by 1.71%, at 2,206.19.
The risk of recession heightened in the eurozone after
Seven of the nine countries downgraded were given a negative outlook by S&P, indicating a risk of further cuts in sovereign ratings.
“At the global level, the pace of economic activity is weakening, and the risks for
Without strong policy actions, Lipton said, “
He added: “In today’s interconnected global economy, no country and no region would be immune from that catastrophe. This is especially true for Asia,” citing Asia’s trade and financial links with
With the industrialized economies of the West possibly facing another downturn,
In China – the world’s second-biggest economy – a combination of tight monetary policy and slowing exports saw the economy slowing down its pace of growth since the start of the year.
“Fourth-quarter 2011 GDP to be released this week is projected to grow 9.0% year on year, concluding growth for 2011 at 9.3%. Growth momentum has been clearly decelerating in [the quarter] as evidenced by dwindling external demand and slower fixed asset investment growth,” Singapore-based bank DBS Group Research said.
The weakness of external trade is likely to continue onto the first quarter of this year, it added.
“Contribution of trade to growth will be much less than last year. This situation naturally calls for stronger domestic demand,” the bank said.
For the current year, DBS Bank Research said it is “optimistic that
Meanwhile, Lipton said the IMF and
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