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Euro/Greece woes.....Asia stocks fall as Greek worries rattle investors

5-15-12

BANGKOK (AP) - Asian stock markets fell Tuesday, rattled by a political impasse in Greece that could lead the debt-stricken country to a disorderly and destabilizing exit from the euro currency union.

Greece has been unable to form a coalition government since voters gave support to political parties that want to cancel or renegotiate the terms of a massive financial bailout by international lenders that requires harsh austerity measures.

If Greece walks away from its debts, an exit from the euro currency zone would be likely, and the effects would ripple throughout the rest of Europe and its struggling economies.

Chinese shares were lower amid fears of a slowdown in the world's No. 2 economy. Hong Kong's Hang Seng Index fell 0.1 percent to 19,710.68 and the mainland's Shanghai Composite Index was 0.5 percent lower at 2,370.24.

Problems in Europe were compounded by the loss in a state election for German Chancellor Angela Merkel's party and _ by extension _ her austerity policies. The release later Tuesday of data expected to show the eurozone in recession also caused jitters.

The ongoing political stalemate in Greece drove U.S. stocks lower.






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