TOKYO: Asian stocks fell from a 4 1/2 month high after talks between Greece and its creditors broke down.
The MSCI Asia Pacific Index slid 0.1 percent to 143.17 as of 9:01 a.m. in Tokyo after closing yesterday at the highest since Sept. 25. Talks in Brussels ended abruptly Monday as an official from Greek Prime Minister Alexis Tsipras’s government said the euro area’s recommendation to extend the current bailout conditions was unacceptable. The Stoxx Europe 600 Index halted two days of gains. Futures on the Standard & Poor’s 500 Index sank 0.5 percent since Feb. 13, with U.S. markets closed yesterday for a holiday.
“Markets recognized the discussions were going to be difficult, so I don’t think this changes people’s expectations dramatically,” said Angus Gluskie, managing director at White Funds Management in Sydney, where he oversees about $550 million. “But it is a key point of uncertainty for investment markets, so it’s likely to mean that investors will continue to be cautious.”
Failure to strike a deal on Greece’s debt by Feb. 28, when the current aid program expires, risks putting the nation’s euro membership in jeopardy.
Japan’s Topix index fell 0.2 percent. The Nikkei 225 Stock Average slipped 0.4 percent after yesterday finishing above 18,000 for the first time since July 2007. Australia’s S&P/ASX 200 Index declined 0.5 percent today. South Korea’s Kospi index slid 0.3 percent, and New Zealand’s NZX 50 Index added 0.1 percent. Markets in Hong Kong and China have yet to open.
Central bankers in Indonesia meet today to discuss monetary policy, with economists surveyed by Bloomberg not predicting any action. The South Korean central bank meets today, and is also expected to keeps rates on hold by all 16 economists surveyed by Bloomberg. Japan’s central bankers are scheduled to finish a two-day meeting tomorrow, with no policy changes predicted. Minutes of the Reserve Bank of Australia’s last meeting, when interest rates were cut to a record low, are due today.
Markets in mainland China are set to shut from Wednesday for the weeklong Lunar New Year break. South Korea will be closed from Wednesday through the end of the week.
