Asian markets lower on Greece jitters
HONG KONG—Asian markets slipped for a third straight day Wednesday as dealers nervously await Greece’s key debt swap while sentiment was also hit by eurozone officials saying the region was in recession.
Worse-than-expected Australian growth figures also added to the glum atmosphere.
Tokyo was 0.64 percent, or 61.57 points, lower at 9,576.06, Sydney fell 1.45 percent, losing 61.0 points to end at 4,143.7 and Seoul gave up 0.91 percent, or 18.21 points, to 1,982.15.
Hong Kong fell 0.86 percent, or 178.47 points, to 20,627.78 and Shanghai shed 0.65 percent, or 15.66 points, to 2,394.79.
Global shares have been falling all week following China’s announcement that it was expecting growth to slow further this year due to a fall in exports caused by slackening demand in the key US and European markets.
But attention is now focused back on Europe, where investors are hoping enough of Athens’ private creditors sign up for the debt swap – essentially a 107-billion-euro ($140-billion) writedown of their bonds.
The plan’s success is a key condition for a 130-billion-euro rescue package to save Greece from a debt default and avoid another potential global crisis.
As Greece battles for its eurozone survival, the rest of the bloc is also suffering, with data showing the economy shrank 0.3 percent in the fourth quarter of 2011.
EU statistics office Eurostat, which issued the figures Tuesday, also revised down growth for the previous three months to 0.2 percent from 0.3 percent.
Eurostat also said the eurozone grew 1.4 percent last year, less than the previously estimated 1.5 percent growth, and an expansion of 1.9 percent in 2010.
The figures track a slowdown at least from the middle of last year, and on Tuesday the EU’s Economic Affairs Commissioner Olli Rehn said in Paris: “The euro area is currently in a mild recession.”
Global troubles have also started to affect Australia – which has fared relatively well in the face of continued headwinds – as Canberra said the mining-driven economy grew slower than expected in October-December.
Data from the Australian Bureau of Statistics showed on-quarter growth of just 0.4 percent in the final three months of 2011, compared with an expected 0.8 percent.
On currency markets the euro bought $1.3136 and 106.10 yen, against $1.3113 and 106.06 yen in New York late Tuesday. The dollar fell to 80.75 yen from 80.88 yen.
And the Australian dollar dived to a six-week low of 105.57 US cents, compared with 106.00 on Tuesday.
Oil prices rose slightly after seeing big falls in New York.
New York’s main contract, West Texas Intermediate crude for delivery in April, gained 44 cents to $105.14 per barrel while Brent North Sea crude for April was up 65 cents at $122.63 in the afternoon.
Gold was at $1,681.40 an ounce at 1040 GMT, compared with $1,686.45 late Tuesday.
In other markets:
— Singapore closed 0.64 percent, or 18.85 points, lower at 2,913.16.
Singapore Airlines gained 2.56 percent to Sg$10.82, while United Overseas Bank shed 1.30 percent to Sg$17.47.
— Taipei fell 0.44 percent, or 34.89 points, to 7,903.08.
Taiwan Semiconductor Manufacturing Co. edged down 0.50 percent to Tw$79.1 while design house MediaTek was 1.11 percent higher at Tw$317.5.
— Manila closed 0.93 percent, or 46.03 points, lower at 4,921.36.
Philippine Long Distance Telephone fell 1.08 percent to 2,760 pesos and Aboitiz Power ended off 0.76 percent to 32.50 pesos.
— Wellington ended flat, nudging up 1.22 points to 3,402.06.
Air New Zealand fell 1.72 percent to NZ$0.86, Contact Energy slipped 0.20 percent to NZ$4.91 and Telecom jumped 2.20 percent to NZ$2.32.
— Kuala Lumpur slipped 0.95 percent, or 15.08 points, to 1,574.83.
Financial firm CIMB Group fell 1.48 percent to 7.31 ringgit, plantation company Sime Darby lost 1.90 percent to 9.80 ringgit and auto group UMW Holdings gained 0.42 percent to 7.19 ringgit.
— Jakarta ended 0.62 percent, or 24.56 points, lower at 3,942.52.
— Bangkok slid 0.41 percent, or 4.79 points, to 1,153.16.
— Mumbai fell 27.77 points, or 0.16 percent, to 17,145.52 on concerns that reforms could slow down after the ruling Congress party fared poorly in state elections in key states.
India’s largest private firm Reliance Industries fell 1.94 percent to 761.45 rupees while Sterlite, the local arm of resources group Vedanta, fell 3.95 percent to 109.35 on reports of a downgrade from ratings agencies after its recent restructuring.
