Asian markets yesterday slipped following the previous day’s healthy gains, while the euro struggled against the US dollar as Greece plunged back into crisis, rekindling fears of a possible exit from the eurozone.
With investors winding down for the end of the year, Wall Street provided a mixed lead, although the Standard & Poor’s 500 Index (S&P 500) topped out at a new record high.
Oil prices slipped to fresh five-year troughs as ongoing worries about oversupply combine with concerns over the global economic outlook.
Photo: Bloomberg
Shares in Taiwan closed in consolidation mode as investors became reluctant to chase prices, even as the index broke the 9,300-point mark.
The TAIEX ended down 17.85 points, or 0.19 percent, at 9,268.43.
“After gaining in the previous few sessions, the local bourse took a pause today,” Mega International Investment Services Corp (兆豐投顧) analyst Alex Huang (黃國偉) said. “There is heavy technical resistance at around 9,350 points.”
Elsewhere in Asia, Tokyo shares sank 1.57 percent, or 279.07 points, to end the year at 17,540.77 — up 7.12 percent over the year and at levels not seen in seven years.
Sydney fell 1.04 percent, Seoul gave up 0.64 percent and Hong Kong ended 1.14 percent lower, while Shanghai edged down 2.2 points.
Profit-takers moved in after Monday’s gains that came on the back of strong US economic growth data, while analysts said thin volumes also contributed to the sell-off.
Adding downward pressure was news that Greek Prime Minister Antonio Samaras had called a general election provisionally for Jan. 25 after lawmakers failed in a third attempt to choose a new president.
There are fears that the anti-austerity, far-left Syriza party could win and roll back measures required under the IMF-EU bailout of the nation, in turn further weakening the eurozone economy.
Analysts said the events in Greece raise concerns of a return to the crisis of 2010 when the nation, unable to service its debts and facing an exit from the eurozone, was forced into taking handouts from the IMF and the EU.
On Wall Street, the S&P 500 gained 0.1 percent on Monday to mark a second successive record close, but the Dow snapped a seven-session winning streak by dipping 0.08 percent.
The NASDAQ was virtually unchanged.
Additional reporting by CNA
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