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Asian shares and euro slip as Greece fails to reach debt deal

Published 15/06/2015, 02:33
© Reuters. A man walks past the Tokyo Stock Exchange building
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By Lisa Twaronite

TOKYO (Reuters) - Asian shares fell and the euro skidded in Asian trade on Monday, after Greece's talks with lenders to avert a default ended with no agreement and Wall Street logged losses ahead of a Federal Reserve meeting.

European Union officials blamed the collapse of the talks on Athens, which it said had failed to offer any new concessions to secure funding it needs to repay 1.6 billion euros (£1.15 billion) to the International Monetary Fund by the end of this month.

"With no deal in sight, expectations for default and exit are likely to rise sharply in the days ahead," said Elsa Lignos

senior currency strategist at RBC.

The euro slipped about 0.4 percent on the day to $1.1235 , and was down 0.4 percent against the yen at 138.49 (EURJPY=).

The Japanese currency edged down against the dollar, with the U.S> unit adding about 0.1 percent on the day to 123.53 yen.

MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) was down 0.4 percent, while Japan's Nikkei stock index (N225) slipped about 0.4 percent.

U.S. stock futures were down about 0.3 percent .

On Friday, shares on Wall Street dropped after upbeat consumer data capped a week of solid economic reports, backing the view that the U.S. Federal Reserve was on track to raise interest rates as early as this autumn.

For the week, the S&P 500 (SPX) and the Dow Jones industrial average (DJI) logged slight gains, while the Nasdaq Composite (IXIC) edged down.

The Fed's policy-setting committee will hold a regular meeting on Tuesday and Wednesday this week. The focus of investor interest will be any change in the nuances of Chair Janet Yellen's language at the usual news conference after the policy announcement.

Crude oil futures extended the previous two session's declines as investors took profits on worries that higher Saudi Arabia output would feed the global supply glut.

Brent crude shed about 0.6 percent to $63.47 after gaining 0.7 percent for the week, while U.S. crude fell 0.4 percent $59.72 after gaining 1.5 percent on the week.

© Reuters. A man walks past the Tokyo Stock Exchange building

Gold edged up slightly to $1,180.43 a tonne after Greece's talks with its creditors ended with no deal, but gains were capped by caution ahead of this week's Fed meeting.

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