Asian markets fall amid Greece debt worries

Asian markets fall amid Greece debt worries
AP

By JEREMIAH MARQUEZ, AP Business Writer Jeremiah Marquez, Ap Business Writer – 1 hr 11 mins ago

HONG KONG – Asian stock markets fell Thursday after a mediocre finish on Wall Street, as more worries about Greece's debt crisis eroded confidence in a world recovery.

Major markets sank as much as 2 percent after ending the previous session mostly higher. Oil prices dropped toward $83 a barrel, while the dollar weakened against the yen and the euro.

Losses across Asia followed a lackluster day in U.S. markets, where strong earnings results from big names like Apple Inc. and Boeing Co. weren't enough to drive the entire market higher.

Investors grew more cautious after Greece's borrowing costs jumped to record highs Wednesday as the government began crucial talks on the details of a rescue package orchestrated by the eurozone and the International Monetary Fund. The country's debt woes have raised fears of a contagion and dragged Europe's shared currency sharply lower in recent months.

"The situation deteriorated overnight, and it's quite negative for sentiment," said Tim Condon, head of Asia research for ING Financial Markets in Singapore. "Underlying is this anxiety about what's going to happen in Greece. The IMF program is not the silver bullet people expected and hoped for, and the downside could be very steep."

Leading Asia's decline was Japan, where the Nikkei 225 stock index dropped 208.39 points, or 1.9 percent, to 10,881.66. News that the nation's exports expanded for a fourth straight month in March did little to lure buyers to the market.

Elsewhere, Hong Kong's main stock index shed 0.7 percent to 21,360.04 and South Korea's Kospi lost 1 percent to 1,730.21.

Markets in Australia, Taiwan and Taiwan also sputtered lower by about 1 percent each.

In currencies, the dollar was changing hands at 92.84 yen, down from 93.15 the previous day, while the euro was at $1.3389 from $1.3383.

Oil prices continued to ease in Asia, with the benchmark contract down 43 cents at $83.25. The contract gave up 17 cents overnight.

Wall Street futures augured a lower open in the U.S. Thursday.

On Friday, the Dow rose 7.86, or 0.1 percent, to 11,124.92, its third straight advance. The Dow has risen nine of the past 10 days.

However, the broader Standard & Poor's 500 index slipped 1.23, or 0.1 percent, to 1,205.94.