Stock markets in the Asia-Pacific region have registered sharp falls, tracking losses on Wall Street as a raft of warnings from policy-makers cautioned against expectations of a rapid rebound in the global economy.

• Benchmark indices in Hong Kong and Tokyo were down by about three per cent in early afternoon trade on Tuesday, with other regional markets registering similar falls.

• Oil prices also fell, with US crude dipping below $67 a barrel in Asian trade, down $6 from an eight-month high reached on June 11.

• The latest losses come after the World Bank gave a gloomy outlook for the global economy, forecasting a contraction of 2.9 per cent, considerably worse than a previous forecast of a 1.7 per cent downturn.

• On Monday, the US government warned that job losses were continuing to mount, saying it expected the unemployment rate in the world's number one economy to top 10 per cent within the next two months.

• US unemployment already stands at 9.4 per cent, the highest level in a quarter of a century.

• That set alarm bells ringing on Wall Street which suffered its worst one-day loss in two months, with the Dow Jones Industrial Average ending the day down 2.4 per cent and the broader S&P 500 index sliding 3.1 per cent.

China outlook 'grim'

• On Tuesday, the deputy head of China's central bank added to the cautionary tone, saying that while China's economy was heading in the right direction, the foundations of recovery are not yet solid.

• "The overall situation is stabilising and moving in the right direction," Su Ning, vice-governor of the People's Bank of China, told reporters in Beijing, but he said that concerns remains about the "grim" international environment for Chinese exporters.
• With companies and consumers still reluctant to spend, China and other export-dependent Asian economies are continuing to face uncertain times.

• Recent months had seen hopes raised that the recession may be levelling out, leading to a surge on global markets since March with some like Hong Kong up by nearly 60 per cent.

'Correction beginning'

• But the world economy is still struggling with the effects of last year's collapse in the US housing market and analysts say the recent cautionary tone triggered a sell-off as investors look to lock in profits.

• "The markets have been overbought, and now the correction is beginning," Peter Lai, investment manager at DBS Vickers in Hong Kong, told the Associated Press.

• "Investors are facing the reality again. People fear the liquidity and funds will start flowing out of the markets, so we're seeing profit taking."

• Later on Tuesday investors will be closely watching the latest US housing data as well as the Federal Reserve's interest rate setting committee which begins its two-day meeting.

Air Algérie and CNAN to reduce prices of transport

Thousands of Algerian immigrants, living particularly in France were surprised early this week because the price of tickets remain the same after the Minister of National Solidarity and Algerian community abroad did not apply the reductions it announced few days ago, after the convention signed with the national company of the maritime transport and Air Algérie.

• Many Algerian immigrants asked why the prices remain the same, confirming that they believe the new prices entered into application just after the announcement of the agreement with the Ministry of Solidarity and the two governmental companies.

• In the same context, Othman Ajride, manager of the sales in the commercial department of Air Algérie  **The study is still ongoing in order to determine the new prices to be introduced he said**. We must complete all the measures before the application of new procedures agreed upon with the Ministry of the national solidarity.

• For its part, Belbal Aldjia, in charge of information at the Ministry of solidarity, said that the necessary measures to complete the procedures are incomplete with the concerned companies, as well as the activation of the foreign affairs services and administration and the ministry of solidarity.

• “The launching of the new measures’ application will begin next June. Work is under way at the level of consular services in order to complete the practical actions and apply the convention. The new reductions will include, according to the agreement, granting the privilege for everyone, particularly those who receive weak wages, elderly people and people who have no cars”, she added.

• In order to stop confusion Ms. Belbal said “The process did not start and people must register themselves in the French and Spanish consulates if they wish to travel with Air Algérie or CNAN transporting companies”.

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