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Asian markets lower as concerns about Greece grow | Asian markets lower as concerns about Greece grow |
(about 3 hours later) | |
Asian markets were mostly lower as concerns about Greece's ability to repay an IMF loan due on Friday weighed on investor sentiment. | Asian markets were mostly lower as concerns about Greece's ability to repay an IMF loan due on Friday weighed on investor sentiment. |
Japan's Nikkei 225 closed down 0.34% at 20,473.51 after ending its longest winning streak since 1988 on Tuesday. | Japan's Nikkei 225 closed down 0.34% at 20,473.51 after ending its longest winning streak since 1988 on Tuesday. |
A €300m ($334m; £216m) payment from Greece to the IMF is due on Friday. | A €300m ($334m; £216m) payment from Greece to the IMF is due on Friday. |
Greek Prime Minister Alexis Tsipras is due to travel to Brussels on Wednesday where he will be presented with a new plan to solve Greece's debt crisis. | Greek Prime Minister Alexis Tsipras is due to travel to Brussels on Wednesday where he will be presented with a new plan to solve Greece's debt crisis. |
International creditors will detail economic reforms needed if Greece is to receive further funding. | International creditors will detail economic reforms needed if Greece is to receive further funding. |
In Australia, the benchmark S&P/ASX 200 closed down 0.9% at 5,583.60 despite reporting stronger-than-expected economic growth figures. | |
Australia's economy grew by 0.9% in the first quarter of the year, against forecasts for growth of between 0.5% and 0.7%. | Australia's economy grew by 0.9% in the first quarter of the year, against forecasts for growth of between 0.5% and 0.7%. |
Australia's big lenders, which are much-loved by investors for their yields, weighed on the country's stock market, with shares in both Westpac and Commonwealth Bank of Australia closing down more than 1%. | Australia's big lenders, which are much-loved by investors for their yields, weighed on the country's stock market, with shares in both Westpac and Commonwealth Bank of Australia closing down more than 1%. |
"It's pretty clear there's pressure on the Australian yielding plays and we're seeing some of the market darlings under extreme pressure," said Sydney-based Michael McCarthy from CMC Markets. | "It's pretty clear there's pressure on the Australian yielding plays and we're seeing some of the market darlings under extreme pressure," said Sydney-based Michael McCarthy from CMC Markets. |
"It's not going to be GDP to the rescue today," he added. | "It's not going to be GDP to the rescue today," he added. |
Hong Kong bucks trend | |
In China, the Shanghai Composite index closed flat at 4,909.98, after two previous sessions of strong gains. | |
A raft of initial share offerings this week was widely expected to draw liquidity from the mainland's markets. | A raft of initial share offerings this week was widely expected to draw liquidity from the mainland's markets. |
According to local reports, the share offerings are expected to lock up 8.3tn yuan ($1.34tn; £873bn) of cash. | According to local reports, the share offerings are expected to lock up 8.3tn yuan ($1.34tn; £873bn) of cash. |
But shares in Hong Kong bucked the region's trend, with the Hang Seng index ending up 0.7% at 27,657.47 despite disappointing factory activity numbers for May. | |
HSBC's Hong Kong purchasing managers' index (PMI) fell to 47.6 in May, its lowest in more than three and a half years. A number below 50 indicates contraction in the sector. | |
"This was the third consecutive month that the headline PMI was below 50," said John Zhu, HSBC's Greater China economist, "which confirms the downward momentum in business conditions." | "This was the third consecutive month that the headline PMI was below 50," said John Zhu, HSBC's Greater China economist, "which confirms the downward momentum in business conditions." |
Mr Zhu said China's slowing economy was "clearly having an impact on orders, with new business from the mainland falling at a particularly sharp pace in May". | Mr Zhu said China's slowing economy was "clearly having an impact on orders, with new business from the mainland falling at a particularly sharp pace in May". |
"The subdued demand conditions will lead to a deterioration in the labour market," he added. | "The subdued demand conditions will lead to a deterioration in the labour market," he added. |
In South Korea, the benchmark Kospi index closed down 0.74% at 2,063.16. | In South Korea, the benchmark Kospi index closed down 0.74% at 2,063.16. |