Posted On: April 06, 2012
Asian shares and currencies were on the downswing this week, dragged downward by higher Spanish borrowing costs as the euro zone nation demonstrates its vulnerability to the sovereign debt crisis, according to published reports.
The monetary units of Thailand and India lost value as yields on Spanish 12-year bonds climbed to 5.76 percent on Thursday, Bloomberg reports
. That figure marks the highest they've been in roughly four months. The Chinese yuan also was driving lower in value.
"Preference for riskier assets weakened as expectations for stimulus policies retreated, and also because economic figures out of Europe this week were negative," currency analyst Jeon Seung Ji with Samsung Futures told Bloomberg.
Spanish Prime Minister Mariano Rajoy acknowledged on Wednesday that the nation he leads, which hosts the euro zone's fourth largest economy, is facing daunting challenges. Italy's economy is third largest, that of France checks in at second and Germany hosts the euro zone's largest economy.
Despite slower-paced trading due to the observation of Good Friday, Reuters reports
Asian shares were not demonstrating a very strong performance, also because of weak U.S. jobs data and the tenuous financial and economic situation with Spain.
Category: Industry News
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