Greece default concerns drag on Asia markets

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  • From the section Business
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Asian stocks are poised to have a lacklustre session on Monday due to concerns over Greece
Asian markets opened mostly lower on Monday on fears that Greece could default on its debts after talks in Brussels failed to reach a deal.
Greece has two weeks left before its bailout expires and the country potentially faces leaving the eurozone.
Japan's Nikkei 225 is down 0.8%, while the broader Topix lost 0.7%.
Australia's benchmark S&P/ASX 200 and South Korea's Kospi index both edged 0.2% lower.
Last week, the International Monetary Fund unexpectedly pulled out of talks with Greece after saying that no progress had been made.
"Greek negotiations falling through bring hopes of a resolution too close to the wire, with a lot being hung on the Eurogroup meeting later this week," wrote Vishnu Varathan of Mizuho bank.
"We expect a tumultuous negotiation process to continue inducing euro volatility."
Investors will be watching the Federal Reserve meeting on Wednesday for more clues about when the US central bank will raise interest rates.
"While no change in policy is expected, we think markets are bracing for... and a slower pace of hikes in Fed projections," Mr Varathan said.
Central banks in Japan and Indonesia will also hold policy meetings this week.

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