Asia Stocks Slip As Greek Bailout Remains In Limbo

PAMELA SAMPSON

BANGKOK (AP) — World stock markets dropped Friday after Europe's finance ministers demanded more spending cuts from Greece before clearing a €130 billion ($170 billion) bailout to stave off the country's bankruptcy.

Benchmark oil fell to near $99 per barrel while the dollar rose against the euro but fell against the yen.

European shares fell in early trading. Britain's FTSE 100 lost 0.5 percent to 5,865.53 while Germany's DAX lost 0.8 percent to 6,736.57. France's CAC-40 was 0.8 percent lower at 3,398.35. Wall Street was set for a lower opening, with Dow Jones industrial futures down 0.5 percent at 12,781 and S&P 500 futures losing 0.6 percent to 1,340.50.

Investors booked profits in Asia as traders cautioned clients to gird for a debt default by Greece.

"Today's headlines underline what most investors know to be true: Greece will default," said Andrew Sullivan, principal sales trader at Piper Jaffray in Hong Kong.

Japan's Nikkei 225 index fell 0.6 percent to close at 8,947.17. Hong Kong's Hang Seng lost 1.1 percent to 20,783.86 and South Korea's Kospi dropped 1 percent to 1,993.71. Australia's S&P/ASX 200 shed 0.8 percent to 4,245.30.

Greece announced an agreement with European debt inspectors Thursday to cut costs as a condition of getting bailout money that would keep it from defaulting on its debt next month — an event that would send shock waves through the world financial system.

But finance ministers from nations that use the euro said Athens didn't go far enough and have given Greece just a few more days to find an extra €325 million ($430 million) of spending cuts and get parliament to approve the measures.

All that suggests "further uncertainty on the horizon," Credit Agricole CIB in Hong Kong wrote in an email. "A Greek parliamentary vote set to begin this weekend may see some progress but markets will trade cautiously ahead of the vote."