Summary At the same time authorities made it easier to short sell, or bet against stocks.
HONG KONG (AFP) - Asian markets mostly retreated Monday following losses on Wall Street as fears over Greece returned, while Shanghai and Hong Kong tumbled after Chinese authorities unveiled restrictions on dealers borrowing cash to trade shares.
The mainland clampdown, announced Friday, offset news at the weekend that the Chinese central bank had reduced the amount of cash lenders must keep in reserve, in a bid to boost loan activity.
In late trade Shanghai sank 1.45 percent and Hong Kong was 2.12 percent lower and Sydney shed 0.76 percent, or 44.8 points, to close at 5,833.1.
Tokyo was marginally lower, easing 18.39 points at 19,634.49 but Seoul 0.15 percent higher, adding 3.21 points to 2,146.71.
The People s Bank of China Sunday announced it would cut one percentage point off the reserve ratio requirement, the second reduction this year and the latest monetary easing measure aimed at kickstarting growth in the world s number-two economy.
It has also cut interest rates twice since November.
However, in Friday the China Securities Regulatory Commission s decision to tighten rules on margin trading -- where investors buy shares mostly with borrowed money -- which has helped propel the recent rally.
At the same time authorities made it easier to short sell, or bet against stocks.
The Hong Kong and Shanghai share markets have been soaring as investors speculate that Chinese leaders will continue to loosen monetary policy to counter a sharp slowdown.
"Chinese shares have risen too fast and it s no surprise to see huge volatility in the market going forward," Castor Pang, the head of research at Core Pacific-Yamaichi in Hong Kong, told Bloomberg News.
Shanghai has more doubled over the past year, while Hong Kong has surged about 18 percent this year.
On Wall Street the Dow sank 1.54 percent, the S&P 500 fell 1.13 percent and the Nasdaq dropped 1.52 percent on fears about Greece s future in the eurozone as it struggles to secure the release of much-needed bailout cash.
Uncharted waters
Athens was told Saturday to urgently deliver a detailed fiscal and debt plan to official lenders, while European Central Bank chief Mario Draghi cautioned that not reaching an agreement would take the situation into "uncharted waters."
There are fears that if the country does not service its huge debts it will default and tumble out of the eurozone, fuelling worries about the knock-on effects for the global economy.
European stocks fell sharply Friday, with Germany s DAX 30 index tumbling 2.58 percent and France s CAC 40 in Paris down 1.55 percent.
On foreign exchange markets the euro edged down to $1.0799 and 128.16 yen from $1.0810 and 128.49 yen in New York Friday.
The dollar fetched 118.67 yen compared with 118.86 yen.
Oil prices were higher. US benchmark West Texas Intermediate for May delivery gained 68 cents to $56.42 while Brent crude for June added 70 cents to $64.15.
Gold fetched $1,205.73 against $1,205.91 late Friday.
In other markets:
-- Wellington fell 0.63 percent, or 37.21 points, to 5,824.28.
Air New Zealand was down 0.72 percent at NZ$2.76 and Chorus was off 0.33 percent at NZ$3.02.
-- Taipei fell 0.19 percent, or 18.08 points, to 9,552.85.
Taiwan Semiconductor Manufacturing Co edged up 0.35 percent to Tw$143.0 while Cathay Financial Holding was 0.59 percent lower at Tw$50.3.
