What happens next Where's my refund? Best CD rates this month Shop and save 🤑
MONEY
Standard & Poor's

Greece, etc.: Asia in deep dive after U.S. stocks end up

Jane Onyanga-Omara
USA TODAY
Traders work on the floor of the New York Stock Exchange.

Uncertainty surrounding the future of Greece and debt crisis talks sparked volatile trading on Wall Street Tuesday and is now helping to send Asia stocks into a nosedive.

As of late Tuesday Eastern U.S. Time, the Shanghai and Hang Seng indexes of mainland China and Hong Kong, respectively, were each off about 4% apiece. Taking less of a punch was Japan's Nikkei, down 1.5%.

The plunge in China shares is part of a general rout of China markets, which have prompted announcements of stability measures by the government. But that didn't stop the Shanghai index from an 8.2% free fall at the open.

In the U.S., after an early plunge of more than 200 points, the Dow Jones industrial average recovered to gain 93 points, up 0.5% to 17,776.91.

Greek officials restarted debt talks with its international creditors in Brussels but failed to present any new proposals for European leaders to evaluate.

The officials instead gave a presentation at the emergency summit and were expected to to submit a new bailout proposal as early as Wednesday.

Tuesday night, European leaders gave Greece a stark ultimatum: Reach a new bailout agreement with its creditors by Sunday or face bankruptcy and expulsion from the euro currency system.

The lack of progress on a resolution to the debt crisis sent stocks in Europe tumbling and Wall Street fell before paring losses later in the day.

Ending up 0.6% was the Standard & Poor's 500 index, now at 2081.34. The tech-heavy Nasdaq composite eked out a 0.1% gain, ending at 4997.46.

European markets closed sharply lower: Germany's DAX tumbled 2%, France's CAC 40 fell 2.3% and Britain's FTSE 100 index lost 1.6%. The Athens stock exchange is scheduled to stay closed until Wednesday. An exchange traded fund that tracks Greek shares, the Global X FTSE Greece 20 ETF, was down about 2.2% after dropping 8% on Monday. The euro fell 1.2% to $1.0928.

Bond prices rose as investors continued to seek safety. The yield on the 10-year Treasury note fell again Tuesday, dropping to 2.23% from 2.29% Monday.

STOCKS:Live markets blog

It's not just Greece creating angst on Wall Street. The continued decline of mainland China's stock market – which is now in bear market territory – is also giving investors pause. After another decline today the Shanghai composite index is now down nearly 28% from its June 12 closing high.

Some investors fear that a continued meltdown in Chinese shares could cause further slowing of the world's second-largest economy, which would have a domino effect around the globe.

Other Asian markets were mixed: Japan's Nikkei 225 index gained 1.3% to close at 20,376.59 while Hong Kong's Hang Seng index lost 1%.

U.S. investors were also preparing for the start of second-quarter earnings season and a potential slowdown in corporate profit growth. Wall Street analysts are now forecasting a 3% contraction in profits after the S&P 500 eked out a 2.2% growth rate in the first quarter.

PROFITS:Earnings season arrive amid Greek crisis

Contributing: Adam Shell

Featured Weekly Ad