Business
Markets react after Obama’s tough talk on Iran
Mainland Chinese shares were mixed, with the Shanghai Composite Index closed down 0.6 percent to 2,445 and the smaller Shenzhen Composite Index marginally higher at 981.20.
In a speech Sunday, President Barack Obama said he would not hesitate to attack Iran to keep it from getting a nuclear bomb, hoping to dissuade Israel from launching a unilateral strike that could ignite a Middle East war.
But he also pleaded for time for diplomacy to work, stressing that military force was a last resort, not the next option at a time when sanctions are squeezing Iran.
Still, markets reacted nervously to the message that force remains an option.
“Markets are likely to begin the week in cautious mood on the back of US President Obama’s tough speech on Iran nuclear problem,” analysts at Credit Agricole CIB in Hong Kong said in an email.
Uncertainly over a definitive solution to Greece’s long-standing debt crisis also kept investors at bay.
The Greek Finance Ministry says the country’s debt-reducing bond swap with private creditors is expected to take place on March 12. At least 66 percent of private sector bondholders must be willing to participate in the deal, the minimum number to make the deal viable.
