Asia stocks down as it digests Greek downgrade

Asia stocks down as it digests Greek downgrade

Stock markets in Asia were down today after Standard & Poor’s (S&P) cut Greece’s credit rating to BB+ from BBB- yesterday.

Greece has become the first euro zone nation to have its debt downgraded to “junk” status.

According to S&P, the downgrade comes amid worries that Greece is not able to take the necessary action in order to manage its economic crisis.

The debt-ridden economy is asking for help from fellow euro zone nations and the International Monetary Fund (IMF) in order to allow it to meet its debt repayments.

However, many have raised concern that it is not able to meet the conditions required to access the funds.

The downgrade hit global stock markets with London’s FTSE 100 closing down 2.6% yesterday, while France’s Cac 40 index fell 3.8% and the Dow Jones index was 1.4% lower at 11,052.1 points following the news.

However, today, Tokyo’s Nikkei 225 Average closed down 2.6%, while Hong Kong’s Hang Seng lost 1.3%, while Singapore experienced a 1.5% fall.

Commenting on its downgrade, Greek Finance Minister George Papaconstantinou said it did “not reflect the real state of our economy, nor the fiscal situation, nor the ongoing negotiations which have the very realistic prospects that they will be completed successfully in the next few days”.

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