Asian markets

The International Monetary Fund (IMF) chief, Christine Lagarde, has met with the Chinese authorities. Christine Lagarde on Thursday said that she believed Beijing was prepared to let the yuan appreciate further – a step which has been demanded by many US and European leaders. The West accuses Beijing of keeping yuan artificially low to benefit its exporters. "My understanding is that the authorities are prepared to let that appreciation continue in the months and years to come," said Lagarde.

The IMF head said the time was not right to include yuan in the IMF's SDR units; however, she was hopeful that it might happen soon.

Political clarity

The head of the IMF expressed concerns about the debt crisis in Italy while discussing the global economic crisis with the Chinese leadership. Christine Lagarde called for "political clarity" on the part of the Italian authorities in dealing with the debt crisis.

Asian markets fall

Meanwhile, the Asian markets reacted negatively on Thursday to the rise of borrowing cost in Italy. Hong Kong’s Hang Seng fell more than five percent and in Tokyo, the Nikkei went down almost three percent. Shanghai shed 1.80 percent whereas Seoul dived 4.94 percent. On the other hand, oil prices plunged in Asia over the fears that the eurozone debt crisis could negatively affect the global energy demand.

Agencies: Reuters, AFP / ss
Editor: Sarah Berning