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Monday, August 8, 2011

MACTV WORLD News: Asian stocks fall on US debt downgrade, Posted by Menelik Zeleke

 


Stocks in Japan and China fall amid concerns of the U.S. debt downgrade, while Japanese Finance Minister Yoshihiko Noda seeks to restore faith in U.S. Treasuries.

SHOWS:
TOKYO, REUTERS (AUGUST 8, 2011) (REUTERS - ACCESS ALL)
1. TOKYO STOCK EXCHANGE (TSE) BUILDING
2. VARIOUS OF TSE STAFF WORKING
3. ELECTRONIC STOCK BOARD SHOWING NIKKEI AVERAGE OPENING AT 9169.67 DOWN 130.21
4. JOURNALISTS FILMING
TOKYO, JAPAN (AUGUST 8, 2011) (TV TOKYO - NO ACCESS JAPAN/CLEARED FOR INTERNET ACCESS/SEE ABOVE FOR FURTHER RESTRICTIONS)
5. JAPANESE FINANCE MINISTER YOSHIHIKO NODA LISTENING
6. (SOUNDBITE)(Japanese) JAPANESE FINANCE MINISTER YOSHIHIKO NODA, SAYING:
"The United States has stated that they will use the current passage of the deficit reduction bill in order to continue to work towards reducing their deficit. Working on the assumption that they do indeed follow through with those promises, I don't see any reason to doubt U.S. Treasuries and I believe that they still remain an attractive asset."
TOKYO, REUTERS (AUGUST 8, 2011) (REUTERS - ACCESS ALL)
7. FOREIGN EXCHANGE TRADING FLOOR AT BROKERS UEDA HARLOW
8. ELECTRONIC BOARD SHOWING DOLLAR TRADING AT 78.09 YEN
9. STAFF TALKING ON PHONE
10. VARIOUS OF FOREIGN EXCHANGE TRADING FLOOR
SHANGHAI, CHINA (AUGUST 8, 2011) (REUTERS - ACCESS ALL)
11. EXTERIOR OF SECURITIES FIRM
12. PEOPLE WALKING INTO SECURITIES FIRM
13. PEOPLE LOOKING AT ELECTRONIC BOARD SHOWING STOCK PRICES
14. ELECTRONIC BOARD SHOWING SHANGHAI COMPOSITE STOCK INDEX
15. STOCK INVESTOR WATCHING SCREEN
16. STOCK INVESTOR LOOKING
17. COMPUTER SCREEN SHOWING STOCKS GRAPH
STORY:Shares in Japan and China fell on Monday (August 8) after the U.S. credit rating was dropped to AA-plus last week on concerns about the U.S. budget deficit and rising debt burden.
Japanese shares opened down at 9169.67 with the broader Topix shedding 2.13 percentage to open at 783.93.
The yen remained strong against the dollar, trading at around 78.10.
Finance leaders of the Group of Seven held a telephone call late Sunday night to discuss the fallout of the ratings downgrade, and agreed to work to curb excess volatility. The G7 leaders agreed that extreme exchange-rate movements were undesirable.
Japanese finance minister Toshihiko Noda who participated in the phone call said the U.S. had indicated that it would seek to continue to reduce its deficit and if such measures were taken, faith in the U.S. treasuries and subsequently the U.S. dollar will be unharmed.
"The United States has stated that they will use the current passage of the deficit reduction bill in order to continue to work towards reducing their deficit. Working on the assumption that they do indeed follow through with those promises, I don't see any reason to doubt U.S. Treasuries and I believe that they still remain an attractive asset," he said.
The U.S. Treasury Department said Japan held $912 billion U.S. dollars in the Treasuries as of May 2011, second only to China's $1.16 trillion U.S. dollars in holdings.
Chinese shares also fell on Monday morning, with the benchmark Shanghai composite index falling to 2,599.3, its lowest level this year and extending a 2.8 percent fall last week, following a slump in global equities.
The U.S. credit rating downgrade drew a blast of criticism over the weekend from official media in China, and deepened investors' alarm over the euro zone crisis.
Chinese policymakers so far have refrained from comment.

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