Asia Markets Fall on Greek Doubts

Stock markets in Asia fell Tuesday amid uncertainty over Greece's bailout talks, with Chinese markets leading the decline.

The Shanghai Composite Index was down 0.9% at 5019.42 following a 2% drop Monday, while the ChiNext index, a gauge of startup stocks on the Shenzhen Stock Exchange, fell more than 2.7% to as low as 3570.92 in early trade.

That represents a more than 10% drop from the ChiNext's record close at 3982.25 on June 3. Last Friday, the Shanghai Composite Index closed at its highest level since January 2008, at 5166.35. The selling this week follows a move by the China Securities Regulatory Commission to address market volatility caused by margin financing.

The Nikkei Stock Average was down 0.6% at 20263.82. Markets in Hong Kong, Japan and Taiwan also fell, tracking losses in the U.S. after bailout talks between Greece and its European creditors broke down.

Investors were also trying to gauge whether the U.S. economy has rebounded enough from a slow start to the year for the Federal Reserve to raise interest rates. Central bank officials will meet Tuesday and Wednesday, and the subsequent statement and news conference could shed light on the Fed's course of action.

"Investors continue to be risk-averse in light of the apparent impasses over Greek debt, the Trans-Pacific Partnership, and what the U.S. central bank might intimate with regard to timing a rate hike," said CLSA equity strategist Nicholas Smith.

In Australia, however, the S&P ASX 200 was up 0.6%, with Insurance Australia Group Ltd. rising 5% on news of an alliance with Warren Buffett's Berkshire Hathaway Inc.

Bradford Frischkorn contributed to this article.

Write to Chao Deng at Chao.Deng@wsj.com

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