TOKYO: Asian stocks fell as investors weighed the European Central Bank’s tightening of the terms of Greece’s bailout. China stock index futures climbed after the government cut banks’ reserve ratios for the first time since 2012.
The MSCI Asia Pacific Index fell 0.2 percent to 141.61 as of 9:24 a.m. in Tokyo. The ECB heaped pressure on Greece’s new government by restricting access to direct liquidity lines, citing concerns about the country’s commitment to existing bailout pledges. China reduced the amount of cash banks must set aside as reserves by 50 basis points, joining more than a dozen global counterparts in easing monetary policy this year to boost growth.
“The good news out of China could help offset the bad news out of Greece,” Nader Naeimi, who helps manage about $125 billion as Sydney-based head of dynamic asset allocation at AMP Capital Investors, said by phone. “We’d get strong market reaction to China’s move to cut reserve requirements, while the Greek situation is going to induce some volatility.”
Japan’s Topix fell 0.4 percent. South Korea’s Kospi index lost 0.3 percent. Australia’s S&P/ASX 200 Index slid 0.2 percent, while New Zealand’s NZX 50 Index was little changed. Markets in China and Hong Kong have yet to open. China’s Shanghai Composite Index slipped 1 percent yesterday after a private gauge of the nation’s services industry expanded at the weakest pace in six months.
