TOKYO (Reuters) - Asian shares fell on Wednesday as investors fretted over Greece's debt crisis and a recent plunge in Chinese stocks, while the euro steadied.
Euro zone members gave Athens until the end of this week to propose reform measures in order to secure the funding it needs to stay in the euro zone.
Investors nervously awaited the opening of China's share markets, after they slumped on Tuesday despite a flurry of new market support measures from Beijing.
The drop extended a savage correction that has clipped 30 percent off Chinese shares since mid-June, threatening a new blow to the already slowing economy.
MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) was down 0.2 percent, while Japan's Nikkei stock index (N225) fell 0.7 percent.
Benchmark copper on the London Metal Exchange
U.S. stock futures
Investors fear Greece's financial woes, if it fails to reach a deal with its lenders, could spread to other southern European nations. These concerns grew when the European Central Bank increased the haircuts on the collateral it demands from Greek banks even as it maintained its emergency liquidity funding for them.
"The main concern remains the extent to which large market moves are consistent with risk-off sentiment – there has been some EUR weakness and increase in periphery spreads, but European EGB yields have compressed as Bund yields compressed proportionally more," strategists at Barclays (LONDON:BARC) said.
"Nonetheless, we do not rule out that contagion increases as the situation worsens in Greece," they added.
The euro <EUR=> was down about 0.1 percent on the day at $1.1006, after falling as low as $1.0916 on Tuesday, its lowest since June 2.
The euro edged down about 0.1 percent to 134.77 yen (EURJPY=R), after falling to a six-week low of 133.52 on Tuesday.
The dollar slipped about 0.1 percent to 122.46
The yield on the 10-year note (US10YT=RR) last stood at 2.258 percent, above its U.S. close of 2.231 percent on Tuesday, when it dropped to a five-week low of 2.185 percent.
U.S. crude <CLc1> added 0.7 percent to $52.68, bolstered by expectations that U.S. government data due later in the session would show an inventory decline. On Tuesday, it settled at a three-month low as the Greek crisis raised fears about lower demand for oil.