Global stocks down as Shanghai sinks, Greece deadline looms
Source: AP-Excite
By YURI KAGEYAMA
TOKYO (AP) — Chinese shares dived Thursday after big gains in the past three months and other global stock markets were mostly lower as a deadline neared for cash-starved Greece to make a debt payment.
KEEPING SCORE: Shares suffered a dramatic plunge in China with the Shanghai Composite dropping more than 6 percent. In Europe, France's CAC 40 slipped 0.6 percent to 5,150.37 and Germany's DAX lost 0.2 percent to 11,745.84. Britain's FTSE 100 inched down 0.1 percent to 7,026.85. U.S. shares were set to drift lower, with Dow futures down 0.2 percent to 18,109.00. S&P 500 futures shed 0.1 percent to 2,117.90.
CHINA DIVE: The Shanghai Composite ended down 6.5 percent at 4,620.27 in another episode of the volatility that has punctuated the market during a 12-month period in which it has gained 127 percent. Stock market commentator Hexun attributed the fall to several factors including brokerages tightening margin lending, selling by speculators after the index neared 5,000 and a Chinese sovereign wealth fund selling shares in two state banks. Despite a deepening economic slowdown, the index has gained 40 percent in the past three months alone. Chinese leaders have recently tried to tap brakes on the stock market boom, fearing it could run out of control and disrupt economic reform plans.
ASIA'S DAY: Japan's Nikkei 225 rose 0.4 percent to 20,551.46; the index is up nearly 10 percent in the past three months as exporter stocks benefit from a cheap yen. Australia's S&P/ASX 200 edged down 0.2 percent to 5,713.10 while South Korea's Kospi gained 0.2 percent to 2,110.89. Hong Kong's Hang Seng took its cue from Shanghai and lost 2.2 percent to 27,454.31. Southeast Asian markets fell while Taiwan and New Zealand rose.
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FILE - In this Oct. 2, 2014 file photo, people pass a Wall Street subway stop, in New York's Financial District. U.S. stocks rose modestly in late morning trading Wednesday, May 27, 2015, recovering part of a steep loss from the day before. Investors remain focused on Greece's debt problems. (AP Photo/Richard Drew, File)
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