Asian stock ends sharply lower in 2011

On Friday, stocks in Asia were headed to end their first year of losses in three years, as they have shed almost fifth of their total value due to the debt crisis in the European zone and the world financial turmoil which took over its toll on the risk appetite of investors, leading them to resort to safer assets including gold and United States dollar. This year has been a disappointing one for stocks. Stocks in Europe were prepared to edge up a little higher in the last session. Stocks in Europe have collided by nearly 12 percent this year. On the other hand, futures in United States pointed fingers towards a weaker start on the Wall Street during the day, as the S&P 500 index looked prepared to put the year to an end in a similar fashion as it started the year end.

In early 2012, cash and safe investments will probably be favored by investors, as investors watch closely the efforts of leaders in the European zone to tackle the debt crisis. Another thing that will surely be observed by investors is the health of the 2nd largest economy of the world, China, which will be a determinate whether investors will return to risk or not. According to Tachibana Securities operating officer, Kenichi Hirano, the general outlook which is prevailing in general is that starting next year, there will be plenty of negative points to look at coming from the European region. At the start of the year, Kenichi said that the market will remain very sensitive to any developments or negative news coming from the European zone. Investors will badly want 2011 to repeat in 2012, as this year has been highly disappointing for stocks, with factors such as European debt crisis playing a big role which turned things against investors in 2011.

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