Stocks drop over Greece uncertainty

Japan's Nikkei 225 index fell after Europe's finance ministers demanded more spending cuts from Greece (AP)

Published: 4:50am, 10th February 2012
Updated: 11:50pm, 10th February 2012

Asian stock markets dropped today after Europe's finance ministers demanded more spending cuts from Greece before clearing a 130 billion euro bailout to stave off the country's bankruptcy.

Japan's Nikkei 225 index fell 0.2% to 8,984.84. Hong Kong's Hang Seng lost 0.4% to 20,928.47 and South Korea's Kospi dropped 0.9% to 1,996.18. Australia's S&P/ASX 200 shed 0.5% to 4,259.60.

Greece announced an agreement with European debt inspectors to cut costs and keep from defaulting on its debt next month, an event that would send shockwaves through the world financial system.

But finance ministers from nations that use the euro said Athens did not go far enough and have given Greece just a few more days to find an extra 325 million euro 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."