Asian markets fell Monday morning from 1-3% in reaction to the downgrade of U.S. credit.Singapore dropped 3.36%,and Hong Kong lost 2.95%.Nonetheless,Asian investors stood by U.S. bonds.Following an emergency meeting,South Korean officials reaffirmed their support for U.S. Treasury bonds.
Taiwan said the downgrade would have no direct or immediate impact.Hong Kong was sticking to its previous policies.Japan said it had not lost trust in Treasuries.Russia said U.S. Treasuries were reliable and it would not be reviewing its investment policy.
UBS said 70% of its clients indicated they would hold onto their U.S. bonds;30% would even increase their holdings.
Australian Treasurer Wayne Swan said Australia faces the challenges from a position of strength.Prime Minister Julia Gillard reassured the nation that Australia could handle the current instability.After all,Australia was the only developed country that did not go into recession during the 2008 financial crisis.
France questioned Standard&Poor's judgement in imposing the downgrade.All the same,U.S. stock futures were down precipitously Sunday evening,warning of a volatile Monday session ahead.
Singapore saw mostly cloudy conditions Monday morning.It was 86F,with winds S at 5 mph.The humidity was 70%.
Australian Adam Scott won the World Golf Championships Bridgestone Invitational in Ohio on Sunday.It was the 31-year old's eighth career victory on the PGA Tour.
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