Asia stocks fall as Spain comes back into focus
By Pamela SampsonAssociated Press
A man walks as above screens showing rising stocks in green as he is reflected in the chart with stock prices at the Greek Stock Exchange in Athens, on Monday , June 18, 2012. AP/Kostas Tsironis
BANGKOK – Asian stock markets were mostly lower Tuesday, as relief from Greece’s election results evaporated amid worries that the financial crisis in the 17 nations that use the euro was far from over.
A narrow victory by Greek conservatives, who favor upholding an austerity program that their country entered into in exchange for an international bailout, initially relaxed fears of a chaotic exit by Greece from the eurozone.
But now the focus was back on Spain, whose borrowing costs surged Monday above the 7 percent level that had forced Greece, Portugal and Ireland to seek international help.
The rate reflected what return investors were willing to accept when a country auctions its bonds. Spain’s high bond yields were a sign that investors are increasingly concerned that the country will struggle to save its crippled banks.
Japan’s Nikkei 225 index fell 0.4 percent to 8,689.79. Hong Kong’s Hang Seng Index lost 0.5 percent to 19,325.19 and Australia’s S&P/ASX 500 lost 0.5 percent to 4,1187.60. South Korea’s Kospi was 0.1 percent down at 1,888.88.
Investors appeared fed up with the inability of European leaders to resolve a financial crisis that has bedeviled markets for more than three years. Leaders of the most developed countries were meeting in Mexico to discuss the crisis and the sluggish global economy.
On Wall Street, the Dow Jones industrial average closed down 0.2 percent at 12,741.82. The Standard & Poor’s 500 index rose 0.1 percent to 1,344.78. The Nasdaq composite index rose 0.8 percent to 2,895.33.
Benchmark oil for July delivery fell 11 cents to $83.16 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 76 cents to finish at $83.27 per barrel.
In currencies, the euro rose to $1.2600 from $1.2580 late Monday in New York. The dollar fell to 78.95 yen from 79.13 yen.
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Tags: Asia , currency , economy , Elections , Greece , Spain , stocks
