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Asian stocks down as concerns grow over Greece and China

Tokyo loses 1.52 per cent, Shanghai as much as 2.93, and Hong Kong, 2.11. Experts blame concerns over Greece and the euro zone. Local factors also play a role, like Tepco’s crisis in Japan and lower growth forecasts in China.
Hong Kong (AsiaNews/Agencies) – Asian stocks fell sharply on Monday as traders were spooked by a downgrade of Greece's credit rating and its impact on the euro zone.

Tokyo lost 1.52 per cent, whilst Seoul closed down 2.64 per cent. Hong Kong shed 2.11 per cent, and Shanghai was down 2.93 per cent.

In other markets, Singapore closed 1.83 per cent; Jakarta lost 2.44 per cent, whilst Taipei fell 1.01 per cent. Manila closed 0.51 per cent lower and Kuala Lumpur fell 0.78 per cent.

Ratings company Fitch on Friday slashed Greece's rating to B+, citing its growing problems in getting its public finances in order. The euro lost 5 per cent in May as confidence in other debt-ridden countries like Spain might falter.

In asia, local factors are also important. In Tokyo trade, beleaguered utility Tokyo Electric Power fell 8.99 per cent after the company posted the biggest ever loss for a Japanese non-financial firm.

Tepco said it had lost a record US billion in the financial year ended March, and its president resigned to take responsibility for the Fukushima nuclear disaster.

The Japanese government announced it would help Tepco pay for damages but there is great uncertainty over the company’s future survival.

Chinese stocks lost because of the economy’s expected slowdown. The pace of manufacturing growth in fact slowed in May, according to unofficial data.