Asia mar­kets in re­treat as Greece di­a­logue stum­bles

The China Post - - BUSINESS INDEX & -

Asian mar­kets turned neg­a­tive Thurs­day on con­cerns about Greece’s debt re­form af­ter talks be­tween the coun­try’s of­fi­cials and cred­i­tors fell apart and its leader ac­cused them of re­ject­ing his pro­pos­als.

While both sides agreed to re­sume talks later in the day, there are fears they could fail to reach an agree­ment to un­lock cru­cial bailout funds, leav­ing Athens in de­fault and pos­si­bly crash­ing out of the eu­ro­zone.

Tokyo slipped 0.46 per­cent, or 96.63 points, to 20,771.40, Syd­ney shed 0.95 per­cent, or 54.1 points, to close at 5,632.7 and Seoul was marginally lower, eas­ing 0.47 points to 2,085.06.

Shang­hai tum­bled 3.46 per­cent, or 162.37 points, to 4,527.78 as in­vestors take prof­its af­ter a surge of more than 140 per­cent over the past year, while a crack­down on mar­gin trad­ing has also seen a wind-down in trad­ing.

Hong Kong ended 0.95 per­cent lower, giv­ing up 259.22 points to 27,145.75.

Re­gional in­vestors fol­lowed their col­leagues in Europe and New York in selling af­ter Athens and its cred­i­tors failed to achieve a break- through on over­haul­ing Greece’s bailout terms, just days be­fore a June 30 dead­line when it must make a debt re­pay­ment.

If a deal is not ham­mered out and Athens does not un­lock much­needed bailout cash, it will de­fault and pos­si­bly crash out of the eu­ro­zone, or even the Euro­pean Union.

Global mar­kets had been on a rally since Prime Min­is­ter Alexis Tsipras handed over Greek pro­pos­als at the start of the week, which were ini­tially wel­comed.

How­ever, while some sources said the plans were 90 per­cent fi­nal­ized, the two sides have been un­able to agree a com­plete over­haul, with tax and pen­sions a key stick­ing point, and Tsipras ac­cus­ing the other side of mak­ing fresh de­mands.

“This strange po­si­tion maybe hides two things: ei­ther they do not want an agree­ment or they are serv­ing spe­cific in­ter­ests in Greece,” Tsipras said as he went into the talks.

“I’m con­cerned selling will ac­cel­er­ate over the ses­sion as in­vestors lo­cally start to an­tic­i­pate fur­ther pres­sure on Euro­pean mar­kets tonight,” Michael McCarthy, chief mar­ket strate­gist at CMC Mar­kets in Syd­ney.

“What we’re look­ing at now is a clas­sic Euro­pean fudge. There will be some tem­po­rary bridg­ing to get through the IMF pay­ment next Tues­day, and we then start an­tic­i­pat­ing the next ma­jor dead­line.”

US shares re­treated. The Dow sank 0.98 per­cent, the S&P 500 fell 0.74 per­cent and the Nas­daq slipped 0.73 per­cent from a record high. News that the U.S. econ­omy did not shrink as much as ini­tially ex­pected in the first quar­ter of the year was un­able to pre­vent a sell­off.

And in Europe bench­mark in­dexes in Frank­furt, Paris, Athens Madrid and Mi­lan all re­treated.

Gold fetched US$ 1,175.88 com­pared with US$1,178.00 late Wed­nes­day. In other mar­kets: — Malaysia’s key in­dex lost 0.86 per­cent, or 14.87 points, to 1,716.81.

May­bank went up 0.32 per­cent to 9.32 ring­git, Te­naga Na­sional fell 1.72 per­cent to 12.56 ring­git while Gent­ing Malaysia dropped 2.11 per­cent to 4.17 ring­git.

— Mum­bai rose 0.60 per­cent, or 166.30 points, to end at 27,895.97.

Ba­jaj Auto gained 4.65 per­cent to 2,506.25 ru­pees, while soft­ware ma­jor Wipro fell 2.03 per­cent to 553.80 ru­pees.

— Jakarta ended down 0.68 per­cent, or 33.48 points, at 4,920.04.

Palm oil pro­ducer As­tra Agro Les­tari Tbk rose 1.20 per­cent to 23,225 ru­piah, while state-owned gas firm Perusa­haan Gas Ne­gara fell 1.49 per­cent to 4,295 ru­piah.

— Sin­ga­pore fell 0.04 per­cent, or 1.46 points, to 3,349.87.

DBS Bank rose 0.24 per­cent to SG$20.85 while Sin­ga­pore Tele­com eased 0.94 per­cent to SG$4.20.

— Bangkok closed flat, just 0.08 per­cent up, or 1.21 points, at 1,519.47

Oil and gas com­pany PTT gained 1.38 per­cent to 367.00 baht while Air­port of Thai­land dipped 1.64 per­cent to 300.00 baht

— Welling­ton fell 0.73 per­cent, or 42.19 points, to 5,733.29.

Ware­house Group was down 0.36 per­cent at NZ$2.75 and Air New Zealand slipped 0.39 per­cent to NZ$2.54.

— Manila gave up 0.80 per­cent, or 61.42 points, to close at 7,581.91.

Uni­ver­sal Robina was up 2.07 per­cent at 197 pe­sos, SM Prime Hold­ings fell 0.99 per­cent to 20 pe­sos while Philip­pine Long Dis­tance Tele­phone sank 1.39 per­cent to 2,840 pe­sos.

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