Asian stakes drop with Greece political uncertainty

Published:  16 May at 6 PM

As reported by the BBC, Asian shares have dropped after Monday's declines in the US and the EU, as political uncertainty in Greece has caused many investors to seek less risky assets. South Korea's Kospi finished down by 0.77% to 1,898.96, while Japan's Nikkei 225 index ended down by 0.8% at 8,900.74.

Asian market shares had been lower previously during the session, while EU markets opened higher last Tuesday after positive German growth data. Greek leaders are due to meet again next Tuesday in an effort to form a new government.

The euro declined by 0.7% in New York, dropping to $1.2824, but recovered to $1.2866 during the opening of European trading. The political uncertainty in Europe had caused a fall in global markets last Monday.

The US Dow Jones index finished down by 1%, and Germany's Dax and London's FTSE 100 share index both dropped by 2%.

Shares in banks were hit the most, mainly in Spain and France. Eurozone finance ministers have been meeting in Brussels in order to discuss the financial issues in Greece and Spain.

Prime Minister of Luxembourg Jean-Claude Juncker, who also leads the 17-nation Eurogroup, says that the desire to keep Greece in the eurozone is “unshakable”. The Eurogroup will do all it can to meet its aim.

Some experts say the possibility of a Greek departure from the Eurogroup is likely if it cannot repay its debts. This, of course, would trigger ripple effect for Europe’s struggling economies.