Asian shares fall as Greece postpones debt repayment

<p>Investors are also awaiting key economic data from the US.</p>

Asian stocks fell today (May 5th) as investors digested the news that Greece postponed a debt repayment. It has become the first country since the 1980s to defer a payment to the International Monetary Fund and the European Central Bank. 

“With Greece missing today’s payment, we’re going to get at least one more month of uncertainty,” Michael Kapler, who manages equities at Mittelbrandenburgische Sparkasse, told Bloomberg. "That means June will be another volatile month for markets. Sentiment is being hit by a stalemate in Greece."

Greek Prime Minister Alexis Tsipras held talks on Wednesday and Thursday with its creditors but failed to reach an agreement to release loans, fuelling worries for the future of the country in the eurozone.

Greece told the International Monetary Fund yesterday that it would postpone a payment that was due today until the end of the month.

Meanwhile, investors are awaiting the release of the US government's monthly jobs report that may provide clues about the health of the world's largest economy.

Tokyo's Nikkei 225 dropped 0.4 per cent to 20,404.22 and South Korea's Kospi edged down 0.2 per cent to 2,067.89. Hong Kong's Hang Seng was down 0.7 per cent to 27,354.50 and Australia's S&P/ASX 200 fell 0.6 per cent to 5,470.90. The Shanghai Composite Index added 0.4 per cent to 4,963.90.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.