An index of Asian shares fell on Thursday as the Chinese, Hong Kong and Australian markets slipped, while the dollar scaled its highest level against the yen since 2002 on expectations the U.S. Federal Reserve will raise rates this year.
China's factories struggled to expand in May despite recent interest rate cuts and other policy stimulus, a Reuters poll showed, suggesting the government may have to do more to halt a protracted slowdown in the economy. PMI, is forecast to inch up to 50.2 from April's 50.1, according to the median forecast of 14 economists in the poll. "Although the government has unveiled a series of policy stimulus measures, the effect has yet to show up," said Nie Wen, an economist at Hwabao Trust in Shanghai.
The head of the International Monetary Fund (IMF) said in a German television interview on Thursday that there was still a lot of work to do before Greece and its international lenders could clinch a cash-for-reforms deal. "We are all in the process of working towards a solution for Greece and I would not say that we already have reached substantial results," IMF Managing Director Christine Lagarde told ARD television in comments which were translated from English to German.