Asian stocks fall as Greece, China worries weigh
Wednesday, 28 April 2010
HONG KONG, Apr 27 (Agencies): Most Asian stock markets dropped Tuesday as worries about Greece's rescue plan and China's measures to slow its economy held investors back.
Chinese stocks led the decline with a three-per cent loss. The dollar weakened against the yen and rose against the euro, while oil prices traded below $84 a barrel.
Initially cheered by this week's news of Greece's bailout, investors were once again fretting about the country's debt crisis after Germany insisted Athens push through more austerity measures before receiving any financial help.
Also denting confidence was ongoing anxiety about China, where the government has taken a series of steps in recent months to bring down property prices and avert asset bubbles.
Some analysts expected the heavy selling in China to abate in the coming days.
"I think this is an overreaction,'' said Peter Lai, investment manager at DBS Vickers in Hong Kong. "The Chinese government wants to stop asset bubbles from developing, but they also don't want to kill the market or the economy either.''
Hong Kong's Hang Seng index dropped 1.3 per cent to 21,310.16 and China's main Shanghai benchmark tumbled 2.9 per cent to 2,883.27.
Elsewhere, South Korea's market was off 0.1 per cent despite data showing that the country's economic growth accelerated sharply in the first quarter of 2010. Gross domestic product expanded 1.8 per cent in the January-March period from the fourth quarter last year.
Taiwan's index lost 0.1 per cent, India's benchmark was down 0.1 per cent and Australia's index was little changed.
In Japan, the Nikkei 225 index reversed early losses to add 46.87 points, or 0.4 per cent, to 11,212.66.
Investors in Tokyo were also cautious ahead of earnings reports from Japanese big companies over the next few weeks.
Due out Tuesday are financial results from Sharp Corp, mobile carrier Softbank Corp and automaker Mitsubishi Motors Corp.
Oil prices fell in Asia with benchmark crude for June delivery down 58 cents at $83.62 a barrel.
In currencies, the dollar slipped to 93.91 yen from 93.98 yen late Monday. The euro was trading at $1.3364 from $1.3394.
Chinese stocks led the decline with a three-per cent loss. The dollar weakened against the yen and rose against the euro, while oil prices traded below $84 a barrel.
Initially cheered by this week's news of Greece's bailout, investors were once again fretting about the country's debt crisis after Germany insisted Athens push through more austerity measures before receiving any financial help.
Also denting confidence was ongoing anxiety about China, where the government has taken a series of steps in recent months to bring down property prices and avert asset bubbles.
Some analysts expected the heavy selling in China to abate in the coming days.
"I think this is an overreaction,'' said Peter Lai, investment manager at DBS Vickers in Hong Kong. "The Chinese government wants to stop asset bubbles from developing, but they also don't want to kill the market or the economy either.''
Hong Kong's Hang Seng index dropped 1.3 per cent to 21,310.16 and China's main Shanghai benchmark tumbled 2.9 per cent to 2,883.27.
Elsewhere, South Korea's market was off 0.1 per cent despite data showing that the country's economic growth accelerated sharply in the first quarter of 2010. Gross domestic product expanded 1.8 per cent in the January-March period from the fourth quarter last year.
Taiwan's index lost 0.1 per cent, India's benchmark was down 0.1 per cent and Australia's index was little changed.
In Japan, the Nikkei 225 index reversed early losses to add 46.87 points, or 0.4 per cent, to 11,212.66.
Investors in Tokyo were also cautious ahead of earnings reports from Japanese big companies over the next few weeks.
Due out Tuesday are financial results from Sharp Corp, mobile carrier Softbank Corp and automaker Mitsubishi Motors Corp.
Oil prices fell in Asia with benchmark crude for June delivery down 58 cents at $83.62 a barrel.
In currencies, the dollar slipped to 93.91 yen from 93.98 yen late Monday. The euro was trading at $1.3364 from $1.3394.