adminDespite an upbeat set of economic data from the United States and Europe, dealers turned their attention to indebted Greece and Spain while banks deposited a record amount of cash with the ECB, raising credit crunch fears.
Sydney finished 1,08 percent lower, or 45,1 points, to 4 142,70, Tokyo fell 0,83 percent, or 71,40 points, to end at 8 488,71, while Seoul lost 0,13 percent, or 2,48 points, to close at 1 863,74.
Hong Kong was 0,17 percent up in afternoon trade with Shanghai down 0,97 percent. Taipei added 0,68 percent, or 47,89 points, to 7 130,86.
In Greece, Prime Minister Lucas Papademos said the nation faced an “uncontrolled default” in March unless unions and employers can quickly agree on labour cost cuts.
At a round of meetings he said the labour issue would be key to an EU-IMF evaluation of Greece’s economy later this month and determine the conclusion of a second bailout agreement for the country.
“Without the agreement and the funding linked to it, Greece faces an immediate danger of uncontrolled default in March,” he warned.
There are fears that an uncontrolled default could infect other weak eurozone member states and threaten the whole euro project.
Dealers were also given a knock by news that the regional government of Valencia was late in repaying a 123 million euro debt to Deutsche Bank, leading to speculation Spain could be forced into a bailout. – AFP.
Online Reporter