Greece is back on investors’ mind as tensions eased in Hong Kong.
A deafening collective sigh of relief is heard all over Hong Kong, particularly from the pro-democracy activists, after lawmakers turned down the package of electoral reforms that are supported by the Chinese government. The rejection is expected to prevent another massive protests in the former British colony, though Beijing won’t be pleased.
As if the political drama in Hong Kong is not enough, investors focused once again on the possibility that Greece might default on its massive obligations, sending Asian shares lower. Read on…
Hong Kong lawmakers reject China-backed electoral reforms. Voting a bit earlier than expected, lawmakers thumbed down the package of electoral changes, which have been criticized as “undemocratic.” The rejection is expected to calm nerves and prevent another massive protests from pro-democracy citizens in the city. Reuters
Japan shares drop to one-month low. The Nikkei slipped below the 19,000 mark Thursday, its first since May 19, and ended 1.13% lower. Investors took profit on rising concerns about Greece defaulting on its debts, while a strong yen further added to the bearish mood. In other markets, the Shanghai Composite Index lost 1.2%, while the Hang Seng Index last traded down 0.7%. Asian Nikkei Review/CNBC
China’s housing market shows signs of life. For the first time in 13 months, prices of new homes in 70 major cities rose 0.2%. But the outlook remains uncertain due to massive inventories. Reuters
Chinese biggest foreign home buyers in the U.S., dislodging Canadians. Buyers from China accounted for 16% of foreign purchases for single-family homes and condominiums in the 12-month period up to March, up from 12% in 2013. Canadians made up 14%, slipping from 23%. The Wall Street Journal (paywall)
Cisco plans over $10 billion investments and partnerships in China. The planned investments, which will be for the next several years, was unveiled amid Cisco’s slumping sales in the country. The Wall Street Journal (paywall)
Photo credit: Pasu Au Yeung via Flickr