Hong Kong---Asian markets sank again Friday after Greece's latest bailout reform talks failed to reach a deal days before a major deadline, while Shanghai collapsed on fears Chinese stocks are overvalued after a year-long advance.
The euro also turned lower as investors looked ahead to the weekend, when EU finance ministers said they will hold more last-minute negotiations to break a five-month impasse over Greece's debts.
Tokyo fell 0.31 percent, or 65.25 points, to close at 20,706.15, while Sydney shed 1.54 percent, or 86.80 points, to 5,545.90.
Shanghai plunged 8.5 percent at one point, its biggest loss in eight years, as investors that had flooded the market on margin trading -- borrowing cash to buy stocks -- ran for the door.
Chinese equities, which more than doubled in value in the year to June 12, eventually closed down 7.40 percent, or 334.91 points, at 4,192.87, its lowest point since the start of May.
The benchmark index has fallen almost a fifth in two weeks, having soared more than 140 percent in the previous 12 months.
Hong Kong felt some of the pain from across the border, losing 1.78 percent, or 481.88 points, to close at 26,663.87.
But Seoul gained 0.25 percent, or 5.20 points, to 2,090.26 on hopes that a new $14 billion stimulus package would help boost the sagging economy, which has been hit by the deadly MERS outbreak.
Despite marathon talks on Thursday, Greece and its EU-IMF creditors were unable to reach an agreement to overhaul its bailout terms and unlock billions of much-needed cash for Athens.
The discussions were meant to pave the way for European Union leaders to endorse an accord at a full summit but ended abruptly, with leaders saying they would try again on Saturday.
"We have not made the necessary progress. In some areas one even gets the impression that we have moved backwards," German Chancellor Angela Merkel told reporters as she arrived for the Brussels summit.
AFP
