Bears dominant in Asia

Most of the regional indices end lower on risk aversion

Asian equities turned in a mostly bearish performance on Monday with China continuing to buck up the weak global trend as risk aversion continued to take its toll on the broad market sentiments. Dollar stayed higher and commodities slid lower. A surprise rate hike by the Reserve Bank Of India late on Friday also played itself out entirely and hurt the risky assets.

The uncertainty over Greece issue continues. Angela Merkel, the German chancellor, on Sunday said Greece isn't in need of financial aid and that the issue shouldn't be at the center of an E.U. leaders summit later this week. The participation of Germany, Europe's largest economy, is seen as crucial to the creation of any backstop for Greece.

The Greek government has implemented austerity measures designed to slash the deficit to 8.7% of GDP this year and to less than 3% by 2012. The moves have spurred a series of strikes by the nation's unions. Greek officials have indicated they will go to the International Monetary Fund for assistance if they don't get details of potential E.U. aid.

The Australian share market closed lower on Monday with declines across all industry sectors. The market was waiting for the Reserve Bank of Australia (RBA) speeches by assistant governor of economics Philip Lowe and governor Glenn Stevens. Mr Lowe is due to speak on Thursday to the Australian Industry Group's 10th Annual Economic Forum in Sydney. Hong Kong's benchmark Hang Seng Index HSI ended down 2.1 percent at 20,933, the lowest since March 5 amid falling volumes as investors geared up for possible monetary tightening.

However, China proved a notable exception. China's key stock index closed up 0.22 percent on Monday, with banking stocks gaining as the market shrugged off a surprise rate hike in India. The Shanghai Composite Index SSEC ended at 3,074.576 points, its highest close in nearly three weeks, after edging lower early in the session but holding to a narrow range. New Zealand stocks also managed to end in green. The benchmark NZX50 index closed up two points, or 0.09% at 3233 as shares in market heavy Telecom recovered. After falling to a record low of $2.11 on Friday, shares in Telecom recovered slightly when the New Zealand stock exchange reopened on Monday.

In India, the key benchmark indices retreated from two month highs hit on Friday and snapped last four days gains on subdued global stocks on worries over Greece's debt crisis and surprise rate hike by the Indian central bank. The BSE 30-share Sensex was provisionally down 185.12 points or 1.05%, up close to 55 points from the day's low and off close to 165 points from the day's high. Investors offloaded shares after the Reserve Bank of India (RBI) late on Friday, unexpectedly raised interest rates from record-low levels, citing intensifying inflationary pressures and a steady economic recovery.

The crude oil prices slipped under $80 as the stocks fell, the US dollar appreciated and the traders continued to cut positions after recent sell off. Crude settled at $80.68 a barrel on the New York Mercantile Exchange on Friday, down 1.9% after a run-up earlier when prices approached $84 a barrel. Ongoing uncertainty over the handling of Greece's debt burden pressured the euro and lifted the dollar. A stronger dollar makes oil less attractive for holders of other currencies.