Asian stocks fell today (June 9th) after a weak overnight session on Wall Street, as investors speculated on the timing of a US interest rates hike, amid ongoing Greece worries.
The Standard & Poor’s 500 Index dropped to a two-month low yesterday after strong jobs data led investors to bet the Federal Reserve will raise interest rates this year.
Meanwhile, German Chancellor Angela Merkel demanded urgent action from the Greek government after Greek Prime Minister Alexis Tsipras rejected a proposal made by the European Central Bank, the International Monetary Fund and the European Commission. An agreement is needed by June 30.
“We still have concerns over US monetary policy and Greece hanging over our heads," Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo, told Bloomberg. "If the US moves towards raising rates, bonds will be sold and, if that turns into a big move, there'll also be consequences for stocks."
Japan's Nikkei 225 dropped 1.4 per cent to 20,168.88, Hong Kong's Hang Seng fell 1.1 per cent to 27,023.59. The Shanghai Composite shed 0.9 per cent to 5,086.65 while South Korea's Kospi ended 0.1 per cent lower to 2,062.24. Australia's S&P/ASX 200 lost 0.4 per cent to 5,477.90.
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