Asian shares slip, euro hit by Greece fears
A man reads a book in front of an electronic stock board of a securities firm in Tokyo, Tuesday, Dec. 30, 2014. Asian stocks were mostly lower Tuesday as concern about Greek politics and the shaky Russian ruble dented confidence in the global economy. AP PHOTO/KOJI SASAHARA
HONG KONG–Asian markets mainly slipped Tuesday following the previous day’s healthy gains, while the euro struggled against the dollar as Greece plunged back into crisis, rekindling fears of a possible exit from the eurozone.
With investors winding down for the end of the year, Wall Street provided a mixed lead, although the S&P 500 topped out at a new record high.
Oil prices slipped to fresh five-year troughs as ongoing worries about oversupply combine with concerns over the global economic outlook.
Tokyo sank 1.57 percent, or 279.07 points, to end the year at 17,540.77–up 7.12 percent over the year and at levels not seen in seven years.
Sydney fell 1.04 percent, or 57.18 points, to close at 5,416.6 and Seoul gave up 0.64 percent, or 12.27 points, to 1,915.59.
Hong Kong ended 1.14 percent lower, shedding 272.08 points to 23,501.10 while Shanghai was flat, edging down 2.20 points to 3,165.82.
Profit-takers moved in after Monday’s gains that came on the back of strong US economic growth data, while analysts said thin volumes also contributed to the sell-off.
Adding downward pressure was news that Greek Prime Minister Antonio Samaras had called a general election provisionally for Jan. 25 after lawmakers failed in a third attempt to choose a new president.
There are fears that the anti-austerity, far-left Syriza party could win and roll back measures required under the IMF-EU bailout of the country, in turn further weakening the eurozone economy.
“This is the worst-case scenario,” Jan Techau, director of the Carnegie Europe think-tank based in Brussels, told AFP. “The uncertainty is a stark reminder the crisis is not over.”
The events in Greece raise concerns of a return to the crisis of 2010 when the country, unable to service its debts and facing an exit from the eurozone, was forced into taking handouts from the IMF and European Union.
Oil prices slip further
Holger Schmieding of Berenberg Bank said there was “a risk of around 30 percent that Greece may descend into a new deep crisis.”
The euro, which was already under pressure owing to the eurozone’s stuttering economy, was at levels against the dollar not seen since mid-2012.
In afternoon trade it bought $1.2137, compared with $1.2153 in New York Monday, while it was also at 145.90 yen, against 146.65 yen earlier.
The dollar fetched 120.20 yen, compared with 120.66 yen in US trade.
On Wall Street the S&P 500 gained 0.10 percent to mark a second successive record close, but the Dow snapped a seven-session winning streak by dipping 0.08 percent. The Nasdaq was virtually unchanged.
Oil prices, meanwhile, fell. West Texas Intermediate for February delivery slipped 36 cents to $53.25 while Brent crude for February dropped 31 cents to $57.57.
WTI closed down $1.12 to $53.61 in New York while Brent fell 57 cents in London to $57.88. Both contracts last traded at those levels in May 2009.
Analysts predicted further bearishness owing to rising US production despite a global supply glut.
“We are seeing light volumes in Asian trading… oil prices have once again touched new lows over longer term concerns about US production levels,” Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP.
Gold was at $1,186.51 an ounce, compared with $1,193.84 Monday.
In other markets:
— Kuala Lumpur lost 1.58 points, or 0.10 percent, to close at 1,766.83.
Malayan Banking lost 0.33 percent to 9.16 ringgit, while Tenaga Nasional added 0.14 percent to 13.96 ringgit.
— Singapore closed down 0.05 percent, or 1.58 points, to 3,366.11.
Agribusiness company Wilmar International gained 0.31 percent to Sg$3.25 while United Overseas Bank fell 0.20 percent to Sg$24.53.
— Jakarta ended up 0.94 percent, or 48.57 points, at 5,226.95.
Palm oil producer Astra Agro Lestari rose 2.11 percent to 24,250 rupiah, while Hero Supermarket fell 1.86 percent to 2,380 rupiah.
— Mumbai rose marginally by 0.03 percent, or 7.81 points, to end at 27,403.54 points.
Bharat Heavy Electricals rose 1.51 percent to 258.35 rupees, while motorbike major Hero Motor Corp fell 2.09 percent to 3,084.85 rupees.
— Bangkok closed down 0.04 percent or 0.55 points to 1,497.67.
Power giant Electricity Generating added 4.69 percent to 167.50 baht, while convenience store operator CP All gained 4.29 percent to 42.50 baht.
— Taipei slipped 0.19 percent, or 17.85 points, to 9,268.43.
Taiwan Semiconductor Manufacturing Co. fell 0.71 percent to Tw$140.0 but Acer rose 0.47 percent to Tw$21.3.
— Wellington finished 0.27 percent lower, giving up 15.13 points to 5,577.20.
— Manila was closed for a public holiday.
