Tokyo, Japan (BBN)-Asian markets are trading mostly lower on fears that Greece could default on its debts after it failed to reach a deal in talks with creditors in Brussels over the weekend.
Greece’s multi-billion dollar bailout expires at the end of the month and the country potentially faces leaving the eurozone if no agreement is reached, reports BBC.
Japan’s Nikkei 225 opened 0.8per cent lower, while the
Topix lost 0.7per cent.
Hong Kong’s Hang Seng fell 0.9per cent and the Shanghai Composite is 0.3per cent lower.
Australia’s benchmark S&P/ASX 200 is down 0.4per cent while South Korea’s Kospi index both fell 0.2per cent
Last week, the International Monetary Fund unexpectedly pulled out of talks with Greece after saying that no progress had been made.
Greek negotiations falling through bring hopes of a resolution too close to the wire, with a lot being hung on the Eurogroup meeting later this week,” wrote Vishnu Varathan of Mizuho bank.
We expect a tumultuous negotiation process to continue inducing euro volatility.”
Investors will be watching the Federal Reserve meeting on Wednesday for more clues about when the US central bank will raise interest rates.
No change in policy is expected,” Varathan said. “However, Fed officials have done abrupt U turns in the past when the data changes.”
Central banks in Japan and Indonesia will also hold policy meetings this week.
However both the Bank of Japan and Bank Indonesia are expected to maintain interest rates at their current level.
China’s latest property prices are also due to be released on Friday.