Asian stocks with U.S ties take major hit
STEVE CHIOTAKIS: As we've talked about, many investors withdrew their money from the markets. Asian investors, too, are worried about another U.S. recession. So they're putting their money in safe havens.
From Shanghai, here's Marketplace's Asia Bureau Chief Rob Schmitz.
ROB SCHMITZ: If you look beyond how the Asian markets today, you'll see the biggest losers were Toyota, Sony, Samsung -- all companies that export to the U.S. Asian investors are preparing for another U.S. recession.
STEPHEN GREEN: There are certainly many folk in the market who think that's a very, very strong possibility.
Stephen Green is an economist at Standard Chartered Bank in Hong Kong. He says Asian investors are looking beyond the U.S. being downgraded.They're also nervous about tepid growth data from the U.S., the sovereign debt crisis in the EU, and --
GREEN: Given the lack of momentum, given the lack of obvious stimulating policies, many in the markets are also skeptical that China has the ability to stimulate like it did in 2008.
China helped cushion the blow of the last recession with a half a trillion dollar stimulus package. Much of that money was wasted on poorly conceived real estate or transportation projects. And for many of those projects, the money won't be paid back. If there is another recession, say economists, China may not even be able to come to its own rescue.
In Shanghai, I'm Rob Schmitz, for Marketplace.