Stock markets in Asia fell Tuesday amid uncertainty over
Greece's bailout talks, with Chinese markets leading the
decline.
The Shanghai Composite Index was down 0.9% at 5019.42 following
a 2% drop Monday, while the ChiNext index, a gauge of startup
stocks on the Shenzhen Stock Exchange, fell more than 2.7% to as
low as 3570.92 in early trade.
That represents a more than 10% drop from the ChiNext's record
close at 3982.25 on June 3. Last Friday, the Shanghai Composite
Index closed at its highest level since January 2008, at 5166.35.
The selling this week follows a move by the China Securities
Regulatory Commission to address market volatility caused by margin
financing.
The Nikkei Stock Average was down 0.6% at 20263.82. Markets in
Hong Kong, Japan and Taiwan also fell, tracking losses in the U.S.
after bailout talks between Greece and its European creditors broke
down.
Investors were also trying to gauge whether the U.S. economy has
rebounded enough from a slow start to the year for the Federal
Reserve to raise interest rates. Central bank officials will meet
Tuesday and Wednesday, and the subsequent statement and news
conference could shed light on the Fed's course of action.
"Investors continue to be risk-averse in light of the apparent
impasses over Greek debt, the Trans-Pacific Partnership, and what
the U.S. central bank might intimate with regard to timing a rate
hike," said CLSA equity strategist Nicholas Smith.
In Australia, however, the S&P ASX 200 was up 0.6%, with
Insurance Australia Group Ltd. rising 5% on news of an alliance
with Warren Buffett's Berkshire Hathaway Inc.
Bradford Frischkorn contributed to this article.
Write to Chao Deng at Chao.Deng@wsj.com
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