Worries of Eurozone’s deficit problem were spreading. The budget deficit of the European Union widened to 6.3%, which was more than double of the 3% limit of gross domestic product of 2009. The culprits are Greece and Ireland, with budget deficit counting 13.6% and 14.3% of their gross domestic product.
Property stocks were under great pressure in China and Hong Kong. After the announcement of several measures to curb the real estate market including increased mortgage rates and down payments for home purchases and narrowed the credit supplies, the news of introducing property tax into four cities, which include Beijing, Chongqing, Shenzhen and Shanghai after the World Expo, hurt the property shares and led the fall of China markets. Shanghai Composite Index and Shenzhen Composite Index went down 1.11% and 0.53% respectively. The Special Administrative Region of China, Hong Kong, also declared the tightening measure on property sales on Wednesday. Hang Seng Index was pressured down continuously on Thursday and reported a 0.26% drop.
Though Hyundai recorded a jump in net profit for nearly five-fold, it still could not turnaround the weakness of South Korea market. KOSPI fell 0.46%. Japan Nikkei 225 Index and Taiwan Taiex Index lost 1.27% and 0.15%. The south Asian countries went in opposite way. The stock markets of Singapore, Malaysia, Thailand, Philippine and Indonesia gained. Singapore Straits Times Index and Stock Exchange of Thai Index both rose 0.44%. Philippine Stock Exchange Index, Indonesia Jakarta Composite Index and Malaysia Kuala Lumpur Composite Index gained 1.03%, 0.47% and 0.25% respectively.
