Shares in Asia mostly weaker after Greece talks impasse, Shanghai up

Investing.com - Shares in Asia dipped on Tuesday after talks between Greece and its creditors broke down, setting the stage for some volatility ahead of the Chinese New Year holidays that start this week.

Talks between Greece and euro zone finance ministers over the country's debt broke down on Monday when Athens rejected a proposal to request a six-month extension of its international bailout as "unacceptable".

The unexpectedly rapid collapse raised doubts about Greece's future in the single currency area after a new leftist-led government vowed to scrap the 240 billion euro bailout, reverse austerity policies and end cooperation with EU/IMF inspectors.

Dutch Finance Minister Jeroen Dijsselbloem, who chaired the meeting, said Athens had until Friday to request an extension, otherwise the bailout would expire at the end of the month.

Greece’s current €240 billion bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling fears over a conflict with its creditors which could trigger the country’s exit from the euro zone.

Greece's Finance Minister Yiannis Varoufakis said Monday that he was ready to sign a document drafted by the European Commission, which outlined a deal between Greece and its partners.

However, Varoufakis said, Eurogroup President Jeroen Dijsselbloem presented him with another document, which referred to past policies and was vague in key issues such as "flexibility", which he could not accept.

Japan’s Nikkei 225 Stock Average slipped 0.4% after yesterday finishing above 18,000 for the first time since July 2007.

Australia’s S&P/ASX 200 Index declined 0.5%, while South Korea’s Kospi index slid 0.3%. The Shanghai Composite bucked the trend, up 0.82%.

Japan’s central bank will announced its latest monetary policy views on Wednesday, which follow minutes of the Reserve Bank of Australia’s last meeting, when interest rates were cut to a record low of 2.25% on concerns about the pace of economic growth.

Markets in mainland China are set to shut from Wednesday for the weeklong Lunar New Year break. South Korea will be closed from Wednesday through the end of the week.

U.S. markets were closed Monday.