Greece worries drag Asian counters lower

After a relief rally on Tuesday, all the Asian equity indices snapped the day’s trade in the negative terrain on Wednesday on growing pessimism over a European summit later in the day. Moreover, the sentiments in the region also dampened after former Greek Prime Minister late Tuesday said that plans for the debt laden nation’s exit from the single currency union are being considered. He also added that there is only limited room for the country to negotiate its loan program. In addition to renewed European worries, there were also concerns over the region’s second largest economy growth, as Japan posted a higher-than-anticipated trade deficit in April-exports of steel and plastic declined as the import of fossil fuels increased.

Meanwhile, Hang Seng and Shanghai Composite tumbled 1.33% and 0.42% respectively as investors spooked by renewed fears of a Greek exit from the euro zone. Moreover, Japanese Nikkei crumbled about 2% as exporters took a beating on a firmer yen. However, the Bank of Japan on Wednesday left its key interest rate unchanged at near zero. In addition, selling in blue chips dragged KOSPI near its crucial 8,800 mark, down by over a percentage point.