World stock markets fall as Fed signals slow recovery, Greece drags on sentiment

World markets fall as Fed report, Greece weigh

HONG KONG — Global stock markets fell Thursday as the U.S. central bank signaled recovery in the world’s largest economy would be slow and anxiety about Greece’s debt crisis weighed on investors.

It was Asia’s first decline after four straight days of gains. The euro, meanwhile, eased following a big advance overnight after Greece announced new measures to help put its finances in order. Oil prices slipped to near $80 a barrel.

The move lower in Asia tracked U.S. markets, where the Federal Reserve’s announcement that economic improvements have been “modest” undermined faith in a quicker rebound. Wall Street, up earlier in the day, lost ground to finish largely where it started.

Markets have been volatile this year, with investors whipsawed by concerns surrounding Greece’s finances, China’s economy and America’s recovery.

John Mar, head of sales trading at Daiwa Capital Markets in Hong Kong, pointed to declining trading volumes as a sign investors were still treading cautiously.

“It’s indicative of uncertainty in the market,” Mar said. “Sentiment is still confused, and we could pull back further in the short term.”

European markets were down in early trade, with British and French markets losing about 0.5 percent and Germany’s main index shedding 0.7 percent. Wall Street futures augured a lower open in the U.S. S&P futures were off 2.1 points, or 0.2 percent, at 1,116.50.

Earlier in the day, nearly every major Asian market traded in the red.

In Japan, the Nikkei 225 stock average fell 107.42, or 1.1 percent, to 10,145.72.

Hong Kong’s Hang Seng dropped 301.01, or 1.4 percent, to 20,575.78 and South Korea’s index was down 4.24, or 0.3 percent, to 1,618.20.

Shanghai’s market dived 2.4 percent as investors took profits ahead of Friday’s opening of the national legislature. Uncertainty surrounding new policies expected to be announced during the National People’s Congress fostered caution.

Elsewhere, India’s market was off 0.3 percent and Taiwan retreated by 0.8 percent.

In currencies, the dollar was down at 88.42 yen from 88.46 yen. The euro was lower at $1.3663 from $1.3693.

Oil prices eased modestly after a two-day jump fueled by growing investor optimism that global crude demand is recovering. The benchmark contract was changing hands at $80.64 a barrel, down 23 cents after climbing $1.19 overnight.

The Dow fell 9.22, or 0.1 percent, to 10,396.76. It had risen nearly 64 points during trading.

The broader S&P 500 index rose 0.48, or less than 0.1 percent, to 1,118.79, its highest close since Jan. 20. The Nasdaq composite index slipped 0.11, or less than 0.1 percent, to 2,280.68.