Asian stocks tumble amid eurozone uncertainty

People learning how to trade may be interested to learn that the decision from Standard and Poor's (S&P) to cut the credit rating of nine European countries has spread ripples in the global market, as Asian shares depreciated in value today (January 16th).

The MSCI Asia Pacific Index dropped 1.2 per cent to 115.54, its largest fall in almost a month, reports Bloomberg.

Around five stocks dropped for every one that rose in the measure, with all ten industry groups dropping back.

Japan's Nikkei 225 gauge sunk by 1.4 per cent despite positive economic news for the country showing machine orders had hit their highest point since January 2008.

Prasad Patkar of Sydney's Platypus Asset Management warned that the cuts from S&P were likely to have a negative impact on trading sentiment.

"It's unrealistic to expect Europe to make progress in dealing with debt issues in a straight line without having hiccups," he added.

The Nikkei bounced back last week amid reports the debt crisis in Europe was set to ease, Bloomberg noted.

Posted by Clive Arneil