Mainland shares endured a sharp selloff late Thursday, while other regional bourses saw lackluster trade after negotiations between Greece and its creditors hit a stalemate overnight.
The Eurogroup meeting ended on Wednesday without any agreement, raising the risks of a Greek debt default once again. Officials are slated to reconvene on Thursday, according to Finland's finance minister.
"There is still time to agree a short-term plan so that Greece can get funding in exchange for reforms and therefore avoid capital controls and ultimately achieve the payment to the International Monetary Fund (IMF). However, time is slipping away and things are looking precarious, specifically for the Greek public," Chris Weston, IG's chief market strategist, wrote in a note Thursday.
Overnight, U.S. stocks finished in the red, with the Dow Jones Industrial Average ending nearly 1 percent lower. The S&P 500 and tech-heavy Nasdaq shaved off 0.7 percent each as investors dropped riskier assets like stocks amid the rising possibility of a Greek default.