Asian markets decline with Euro dropped to multi-year lows

On Wednesday, most of the Asian markets have undergone a decline more than 10% .It was followed by a negative session in Asian Wall Street and the Euro fell to fresh lows . This was on account of the Germany’s increasing control over Trading of Government’s debts and financial shares.

South Korean and Australian benchmark index dropped by 1.6% and Hong Kong’s Hang Seng dropped 1%.Japanese Nikkei Index also lost 1.0%.But there were gainers too like China’s Shanghai composite index with other metal companies.

Recently Germany banned the short sales of euro dominated government bonds, credit default swaps based on those bonds and shares in Germany’s 10 leading financial institutions.

This weakened the optimism of the investors in the first two days of the week. After the announcement of the ban, risk aversion start spreading in the Asian market and the Euro dropped to multi-year lows in Forex market.

Euro/USD was at 12230-Monday’s low. On Tuesday it reached a week high at 12445 in US session opening. On the news of German ban it reached a four year low of 12145 on US and Asian sessions.

Despite the measures taken by Greece,there is much uncertainty about the debt problems in Europe. This has been a big cause of fall of the zone’s currency.

There are a lot of uncertainties prevailing in the Asian market and the future of the Euro is still uncertain. Still there lies one hope in the market about the Euro’s improvement in the coming days.

If Greece is able to pay its first big debt payment on Wednesday as expected on May 19 which is the deadline, then the conditions may improve a bit. Presently this has been a big concern for the worry of the investors.