Greece worries lead Asian stocks down
The country might miss a debt payment on June 5th.
Asian stocks fell for today (June 2nd) amid ongoing worries about Greece's ability to make debt payments and stay in the euro zone.
Leaders in Europe and the International Monetary Fund agreed to step up efforts to find an agreement as the country might miss a debt payment on June 5th if it fails to receive bailout funds from creditors, who are demanding that the country make reforms to its economy.
The Greek government said a rescue deal with its international bailout creditors would be reached this week.
Meanwhile, two surveys released yesterday showed China's manufacturing industry remained weak last month, adding to pressure on the Chinese government to unveil more measures to spur economic growth.
“We’re getting increased volatility now because the market has risen to such high levels,” Khiem Do, head of multi-asset strategy at Baring Asset Management Ltd, told Bloomberg. "China’s central bank will have to ease further because the economy is still quite sluggish. This will continue to provide liquidity to fuel the market rally. Should there be a Greek default, there’s likely to be a negative market reaction."
Japan's Nikkei 225 edged down 0.1 per cent at 20,542.17 and China's Shanghai Composite lost less than 0.1 per cent at 4,826.86. Hong Kong's Hang Seng tumbled 0.7 per cent to 27,392.64, while Australia's S&P/ASX 200 lost 1.4 per cent to 5,654.70 and Seoul's Kospi dropped 1.1 per cent to 2,079.35.
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