Asian stocks down for 2nd ses­sion on Greece woes

The China Post - - BUSINESS INDEX & -

Asian mar­kets re­treated Tues­day for a sec­ond straight ses­sion, track­ing a global sell-off as Greece strug­gle s to find a com­pro­mise with its cred­i­tors, fu­el­ing fears of a de­fault and exit from the eu­ro­zone.

De­spite in­creas­ing wor­ries about Athens’ fu­ture, the euro man­aged to tick up against the dol­lar and yen as traders await the out­come of pol­icy meet­ings at the U.S. Fed­eral Re­serve and Ja­panese cen­tral bank.

Tokyo lost 0.64 per­cent, or 129.85 points, to close at 20,257.94 and Syd­ney ended marginally lower, dip­ping 2.97 points to 5,535.8. Seoul fell 0.67 per­cent, or 13.60 points, to close at 2,028.72.

Shang­hai tum­bled 3.47 per­cent, or 175.56 points, to 4,887.43 on liq­uid­ity con­cerns as 25 firms launch ini­tial public of­fer­ings, which drain funds from the mar­ket.

Hong Kong ended 1.10 per­cent lower, giv­ing up 295.11 points to 26,566.70.

Af­ter the col­lapse of talks at the week­end, both sides in the lon­grun­ning Greek cri­sis were locked in a stale­mate Mon­day, blam­ing each other for the im­passe.

The Euro­pean Union in­sisted the EU-IMF cred­i­tors had made “ma­jor con­ces­sions” but the anti-aus­ter­ity gov­ern­ment in Athens con­tin­ues to re­ject what it views as “ir­ra­tional” de­mands.

Greece must agree a deal by the end of the month, when it is due to make a huge debt re­pay­ment. Oth­er­wise it faces a de­fault that could lead to it plung­ing out of the eu­ro­zone.

U.S. and Euro­pean shares slipped Mon­day. The Dow fell 0.60 per­cent, the S&P 500 fell 0.46 per­cent and the Nas­daq lost 0.42 per­cent.

In Europe, Greece’s Athex dived 4.68 per­cent while Frank­furt’s DAX 30 lost 1.89 per­cent, Lon­don’s FTSE 100 shed 1.10 per­cent and the Paris CAC-40 dropped 1.75 per­cent.

How­ever, while the specter of an exit looms large, the euro re­mains fairly buoy­ant, with an­a­lysts say­ing deal­ers are still con­fi­dent a deal will be reached even­tu­ally.

“All week it will be about Greece and the Fed,” Stan Shamu, a mar­ket strate­gist in Mel­bourne at IG Ltd, told Bloomberg News.

“We might start to see the Fed get­ting a lit­tle bit more up­beat and that could cause some volatil­ity,” he said.

“Most traders want to be cau­tious first and re­act af­ter what hap­pens to­wards the back end of the week with Greece. For now there will con­tinue to be that el­e­ment of cau­tion in the mar­ket.”

The Fed on Wed­nes­day com­pletes its latest pol­icy meet­ing, with in­vestors hop­ing for some new guid­ance on its plans for in­ter­est rates fol­low­ing a broadly up­beat se­ries of U.S. eco­nomic data in re­cent weeks.

And on Fri­day the Bank of Ja­pan con­cludes its own meet­ing, which will be pored over to see if and when it will ex­pand its al­ready mas­sive mon­e­tary eas­ing pro­gram to kick­start slug­gish growth and in­fla­tion.

Gold fetched US$1,184.20 com­pared with US$1,175.37 late Mon­day. In other mar­kets: — Mum­bai rose 0.38 per­cent, or 99.96 points, to end at 26,686.51.

Tata Power rose 2.57 per­cent to 73.95 ru­pees, while miner Vedanta Lim­ited fell 1.46 per­cent to 178.60 ru­pees.

— Jakarta ended up 0.72 per­cent, or 34.81 points, at 4,872.60.

Palm oil gi­ant As­tra Agro Les­tari gained 1.89 per­cent to close at 22,900 ru­piah, while taxi op­er­a­tor Blue Bird Tbk fell 1.25 per­cent to 7,900 ru­piah.

— Malaysia’s key stock in­dex fin­ished 0.005 per­cent, or 0.08 points higher, at 1,722.24 points.

AMMB Hold­ings climbed up 0.49 per­cent to end at 6.15 ring­git and Telekom Malaysia lost 1.03 per­cent to 6.72 ring­git. As­tro Malaysia Hold­ings rose 0.67 per­cent to 3.01 ring­git.

— Bangkok closed flat, edg­ing up 0.09 per­cent, or 1.39 points, to close at 1,503.28.

Coal pro­ducer Banpu slipped 0.96 per­cent, or 0.25 baht, to 25.75 while Air­ports of Thai­land rose 1.29 per­cent, or 4.00 baht, to close at 313.00 baht.

— Sin­ga­pore closed down 0.75 per­cent, or 25.04 points, at 3,298.09.

DBS Bank was down 1.01 per­cent at SG$20.54.

— Welling­ton eased 0.10 per­cent, or 6.04 points, to 5,813.93.

Fletcher Build­ing was down 1.06 per­cent at NZ$8.37 and Cho­rus slipped 0.33 per­cent to NZ$3.02.

— Manila added 0.66 per­cent, or 49.32 points, to end at 7,505.48.

Uni­ver­sal Robina Corp. gained 1.11 per­cent to 182 pe­sos while GT Cap­i­tal Hold­ings rose 1.33 per­cent to 1,373 pe­sos.

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