European Crisis Hits Asia &Nbsp; Australia Cuts Interest Rate For The First Time In 09 Years

China is very worried about Europe's debt crisis, which is affecting China's export dependent economy. manufacturing industry The index has slipped, so the Bank of Australia has cut interest rates for the first time since 2009.

The Reserve Bank of Australia will make its key today. loan Interest rates fell from 4.75% to 4.5%, and banks say the European plight is beginning to impact Asian trade. China's purchasing managers' index fell to 50.4, the lowest level since February 2009, while South Korea reported the smallest increase in exports for two years.

Asian stock markets fell for second consecutive trading days, as the slowdown in regional economic growth threatened the global economic growth. Europe The continued rise in unemployment caused by the crisis has constrained global economic growth. China's report shows that the reduction in export orders has made it more anticipated that Premier Wen Jiabao could relax policies to support the development of the world's second largest economy.

Frederic, a vice president of Hongkong's HSBC economy, said that like China in 2008, China had many potential fiscal incentives, and so did the whole region. The European situation is clearly still challenging.

The Aussie dollar dropped from $1.0530 yesterday (in New York) to $1.0485 (at 3:18 p.m. today in Sydney), before the decision to lower interest rates was $1.0527. The yield of government bonds fell 8 basis points, or 0.08 percentage points, to 4.43% in the past 10 years.