Asian shares were down today (June 26th), led by Chinese shares, with the Shanghai Composite Index tumbling 7.4 per cent to 4193.64 as a growing number of analysts warn that valuations have climbed too far.
The slide in Chinese shares is also blamed on fresh government moves to tighten rules for margin financing.
“The new risk in China is that excessive speculation in the stock market is creating a bubble that the authorities want to control,” Mark Matthews, managing director of Bank Julius Baer & Co. told Bloomberg. “The risk is that intervention in the market could cause it to go down.”
Meanwhile, investors also focused on Greece, which hasn't yet reached an agreement with European finance ministers. Talks are scheduled to resume on Saturday, ahead of an IMF debt-payment deadline for Greece expiring on Tuesday.
Japan's Nikkei ended the day 0.3 per cent lower to 20706.15, Hong Kong's Hang Seng Index dipped 1.78 per cent to finish at 26663.87 and Australia's ASX 200 fell 1.5 per cent to 5545.89. South Korea's Kospi Index edged up 0.2 per cent to 2090.26.
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