TOKYO (CBS.MW) - Tokyo's key benchmark tumbled over 300 points Monday as the dollar's recent sharp depreciation against the yen slammed technology exporters such as NEC and Fujitsu.
...Elsewhere in Asia, Seoul, Singapore and Taipei faced the same fate as Tokyo as their export-oriented technology stocks got slammed on currency strength. Hong Kong also sank while Sydney erased early gains despite a stellar debut for discount airline Virgin Blue.
The dollar slid in early trade to as low as 107.51 yen before recovering to 107.72 yen by noon Tokyo, compared with 107.70 yen on Friday in New York...America's basically ripping these "allies" off, by stiffing them with worthless dollars...
Here:
http://www.forbes.com/markets/newswire/2003/12/08/rtr1172317.html is another interesting take:
Asian debt borrowers have raised US$29.8 billion in U.S. dollar bonds so far this year -- more than 10 times the US$2.8 billion of euro issuance, market research firm Dealogic said.
Dilip Shahani, the head of Asian fixed income credit research at HSBC, said euro strength would undermine recovery in the eurozone and force the European Central Bank to lower interest rates, cutting the cost of funding for issuers.
"Bankers will try to push in that direction and clients will like to buy (euro issuance) because the stronger the euro gets, hence the economic recovery in Europe will be weaker (and) interest rates will be lower," Shahani said.
"I think that will be the time the market starts questioning all these factors and also the fact that competition for global capital will be rising."The Fed can try to put this off, but there's a big ol' crash coming again.... Bush is gonna make Hoover look like Roosevelt at this rate.
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