Forexpros – Asian stocks fell on Thursday on residual fears Greece remains at risk of leaving the eurozone, which could slow overall European growth and crimp exports from Asia.
During Asian trading on Thursday, Hong Kong’s Hang Seng Index was down 0.13%, Australia’s S&P/ASX200 was up 0.02%, while Japan’s Nikkei 225 Index was down 0.05%.
Greece is fast approaching June 17 elections, and fears persist enough fringe candidates will seize power and reject austerity measures, which would cut off the flow of bailout money and open the door to a Greek exit from the eurozone.
A European summit took place earlier, where Germany reportedly balked at calls for the entire currency zone to sell eurobonds, which would see healthy European countries taking on Greek debt burdens.
Eurobond critics also say the issue would send interest rates rising in healthy countries and possibly encourage Greece and other countries to ramp up spending anew.
Weak factory data out of China pressured stocks down as well.
China’s HSBC Flash Purchasing Managers Index fell to 48.7 in May from a final April reading of 49.3.
In Hong Kong, the top decliners included CITIC Pacific, down 2.41%, China Mobile, down 2.38%, and Bancomm, down 1.57%.
In Australia, the top gainers included Sundance Resources, up 7.50%, Art Energy, up 6.06%, and Monadelphous Group, up 5.18%.
European stock futures indicated a lower opening.
France’s CAC 40 futures pointed to a loss of 0.03%, while Germany’s DAX 30 futures signaled a loss of 0.09%. Meanwhile, in the U.K., the FTSE 100 futures indicated a loss of 0.07%.
Dow Jones Industrial Average futures were down 0.01% while the S&P 500 futures were down 0.02%.
Later Thursday, New Zealand will release trade balance figures, while the government is to make its annual budget statement.
The Bank of Japan will release its monthly report on economic and financial developments.
In the U.S. on Thursday, the government will release data on core durable goods orders and a separate report on initial jobless claims, both leading indicators of economic health.
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