Stocks in Asia fell Thursday after remarks from European finance ministers suggested a Greek bailout deal wasn’t likely to be reached until later this week, while a rebound in China’s market eased despite new efforts from Beijing to stimulate lending.
In Tokyo, the Nikkei 225 index erased 96.63 points, or 0.5%, to 20,771.40,
In Hong Kong, the Hang Seng Index jettisoned 259.22 points, or 1%, to 27,145.75
Significant divisions remain over measures Greece must implement to receive the bailout funds. Earlier, Greek Prime Minister Alexis Tsipras attacked the country’s international creditors after they rejected a list of steps Greece said it was willing to take in exchange for financial aid. U.S. stocks ended lower Wednesday, as recent optimism about the deal faded.
CHINA
In China, the CSI 300 dropped 173.61 points, or 3.6%, to 4,706.52
China will remove the country’s long-standing loan-to-deposit ratio requirement of 75%, in a bid to lend out more to a slowing economy, according to a statement by the State Council late Wednesday. ANZ Bank said the removal could allow 3.5 trillion yuan of potential credit into China’s financial system, equivalent to a 250 basis point cut to banks’ reserve ratio requirements.
The latest bout of volatility in Chinese stocks has come from increased margin calls from Chinese brokerages, whereby investors who don’t add more money to their trading accounts can be forced to sell existing margin positions.
Total margin loans eased to 2.21 trillion yuan on Wednesday from a record 2.27 trillion last Thursday, according to data provider WIND Info.
Still, expectations for margin loans to grow could support further bets in Chinese stocks. Investors can borrow up to three trillion yuan, given that China’s securities regulator says it will allow brokerages to lend out four times their net capital, according to Macquarie Securities Group.
In other markets
The Taiex index in Taiwan climbed 79.03 points, or 0.8%, to 9.476.34
In Korea, the Kospi index inched down 0.47 points to 2,085.06
In Singapore, the Straits Times Index docked 1.46 points to 3,349.87
The NZX 50 fell 42.19 points, or 0.7%, to 5,733.30
The ASX 200 Index moved down 54.05 points, or 1%, to 5,632.72
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