Asian markets rise on Greece deal

HONG KONG: Asian markets rose in early trade Tuesday after the eurozone and the IMF agreed to unlock 43.7 billion euros ($56 billion) in loans to Greece and grant significant debt relief for decades to come.

Tokyo shares rose 0.38 per cent by the break, Hong Kong was up 0.25 per cent and Sydney gained 0.68 per cent.

Seoul opened flat but Shanghai was down 0.76 per cent on concerns over the strength of recovery in the domestic economy.

The Eurogroup of currency partners penned the Greek deal at its third late-night meeting in two weeks, agreeing to release, in December, the funds after months in which Greece was starved of bailout financing.

Greece, struggling to stay afloat despite a series of unpopular austerity measures, has been waiting impatiently for an injection of international loans for several weeks to avoid defaulting on its upcoming debt repayments.

Greece's public creditors agreed to take measures to bring down the country's debt-to-GDP ratio from an estimated 144 per cent to 124 per cent within eight years, in exchange for the bailout funds.

Finance ministers, the IMF and the European Central Bank said the money would be paid in four instalments from December 13 through until the end of March.

Greek Prime Minister Antonis Samaras said the agreement represented a fresh start for his beleaguered country.

"Everything has gone well," Samaras told local media in Athens. "All Greeks have fought (for this decision) and tomorrow is a new day for every Greek person."

ECB President Mario Draghi said: "The decision will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece."

US markets were feeble in the first session after a slow Thanksgiving holiday week, with the jury still out over how strong the crucial Black Friday holiday sales were for retailers.

The Dow Jones Industrial Average finished down 42.31 points (0.33 per cent) at 12,967.37.

The broad-market S&P 500 lost 2.86 (0.20 per cent) at 1,406.29, while the Nasdaq Composite rose 9.93 (0.33 per cent) to 2,976.78.

On currency markets the euro was stronger in Asian trade as investors breathed a sigh of relief over the deal for Greece.

The 17-nation currency bought $1.2980 and 106.46 yen in Tokyo morning trade after briefly topping $1.30 for the first time in about a month.

That was up from $1.2971 and 106.38 yen in New York trade late Monday, although the euro eased slightly after the Greece announcement.

The dollar was flat at 82 yen.

On oil markets, New York's main contract, West Texas Intermediate (WTI) for January delivery, bounced 30 cents to $88.04 a barrel and Brent North Sea crude, also for January, jumped 29 cents to $111.21.

Gold was at $1,749.50 at 0310 GMT compared with $1,734.47 late Monday.

Asian markets boosted by US manufacturing data

HONG KONG: Asian markets rose Tuesday following better-than-expected manufacturing data from the United States that lifted hopes for recovery in the world's number one economy.

The news, which followed minor improvements in Asian and European activity, also gave a boost to the dollar and euro against the yen, lifting Japanese stocks.

Tokyo was 0.25 per cent higher by the break, Sydney added 0.60 per cent and Seoul was 0.27 per cent higher, while Taipei added 0.26 per cent.

Hong Kong, Shanghai and Mumbai were closed for a public holiday.

Traders took their lead from Wall Street, which ended broadly higher after the Institute for Supply Management said its Purchasing Managers Index (PMI) edged up to 51.5 last month, from 49.6 in August -- representing the first expansion after three months of contraction.

A reading above 50 indicates growth and anything below represents shrinkage.

On Monday China said its own PMI was at 49.8 in September, which while still negative represents a modest improvement on 49.2 in August. And in Europe the reading came in at 46.1, up from 45.1.

CLSA equity strategist Nicholas Smith said that the figures appeared to show "that the general picture is for a turnaround in global markets".

At the close of trade on Wall Street the Dow added 0.58 per cent and the S&P 500 added 0.27 per cent but the Nasdaq edged down 0.09 per cent.

On currency markets the dollar stood at 78.13 yen in Asian trade, from 77.98 yen in New York late Monday.

The euro was at $1.2898 and 100.82 yen, compared with $1.2887 and 100.51 yen in New York.

Eyes are now on the Reserve Bank of Australia (RBA), which is due later in the day to announce a decision on interest rates, with opinion split on whether it will make a cut to boost the economy.

"A rate cut today looks like a line ball decision for the RBA," Ric Spooner, Chief Market Analyst at CMC Markets said in a note to clients.

"With a division of opinion amongst analysts on whether the RBA will move, a rate cut today has the potential to move markets this afternoon," he said, according to Dow Jones Newswires.

Oil prices rose in early trade, with New York's main contract, light sweet crude for delivery in November, adding three cents to $92.51 a barrel and Brent North Sea crude for November gaining 16 cents to $112.35.

Gold was at $1,777.30 at 0300 GMT compared with $1,770.50 on Monday.

Asian shares fall on S. Korea, Japan bank action

HONG KONG - Asian markets plunged Thursday on growing fears of a regional slowdown after South Korea unexpectedly cut interest rates and Japan's central bank failed to announce major new stimulus measures.

The news spooked investors who were already nervous a day before China releases key data expected to confirm slowing growth in the world's second-biggest economy.

Tokyo fell 1.48 per cent, or 130.99 points, to end at 8,720.01, while Seoul closed down 2.24 per cent, or 41 points, at 1,785.39.

Hong Kong stocks closed 2.03 per cent, or 394.76 points, lower at 19,025.11, amid concern over the Chinese economy. But Shanghai ended up 0.46 per cent, or 10.11 points, at 2,185.49, on selective buying.

Sydney fell 0.70 per cent, or 28.5 points, to end at 4,068.0 after weak June jobs figures, which saw the unemployment rate rise to 5.2 per cent.

By cutting its key interest rate 25 basis points to 3.00 per cent, South Korea's central bank joined an international drive to ease the impact of the eurozone debt crisis that threatens export-dependent Asian economies.

The bank said in a statement the domestic economy was under pressure "due mostly to the increase in euro area risks and the sluggish economies of its major trading partners".

The reduction was the first since February 2009, when the key rate hit a record low of 2.00 per cent.
"The move was taken as a sign that the Korean economy is weakening." said Jackson Wong, an investment manager at Tanrich Securities.

The European Central Bank and China's central bank cut their rates last week, while Brazil on Wednesday slashed its rate to a record low.

But the Bank of Japan took no major new action despite lowering its growth forecast for the fiscal year, to 2.2 from 2.3 per cent, surprising some analysts.

Following a two-day policy meeting, the bank said it would keep rates steady at zero to 0.1 per cent and fine-tuned a 70 trillion yen (US$880 billion) asset-purchase programme but the size of the policy tool remained steady.

The bank said it would reduce the amount of fixed-rate loans it offers by five trillion yen and increase the purchase of treasury discount bills by the same amount, but observers said the move would have little impact.

Although expectations of major action by the bank had been waning in recent weeks, analysts were disappointed given the recent moves by other central banks.

"After rate cuts by Korea and Brazil, it's just odd that the BoJ is not playing ball like everyone else," said Hideyuki Ishiguro, strategist at Okasan Securities in Tokyo.

"Stock investors feel that the BoJ is too tentative, too little, and too late on policy, and that it lacks a sense of duty to support the market," he told Dow Jones Newswires.

Asian stocks slipped as soon as they opened, following a lead in the US after the minutes of the Federal Reserve's June meeting showed the rate-setting committee split on whether to provide more stimulus.

Several top policymakers urged the central bank to look at new tools to bolster the financial system amid a weak recovery, but the minutes also showed the Fed split on how, when and if to provide more stimulus.

The Dow Jones Industrial Average finished down 0.38 per cent.

The flood of news from the region overshadowed developments in the eurozone, where optimism about an austerity package in Spain was largely offset by worries that Italy may have to tap a eurozone rescue fund, dealers said.

On currency markets, the euro slipped against major currencies in early European trade to fresh two-year lows. It bought $1.2185 and 96.67 yen, from $1.2238 and 97.58 yen in New York late Wednesday.

The dollar weakened to 79.29 yen from 79.74 yen in New York.

Gold was worth $1,564.75 an ounce at 1125 GMT, compared with $1,578.20 late Tuesday.

In other markets:
Taipei fell 1.75 per cent, or 126.98 points, to 7,130.93.

Taiwan Semiconductor Manufacturing Co lost 3.07 per cent at Tw$75.7 while Hon Hai Precision slipped 3.11 per cent to Tw$87.1.

Wellington rose 0.65 per cent, or 22.56 points, to 3,501.40.

Telecom Corp. was up 2.2 per cent at NZ$2.58 after rival TelstraClear was sold to Vodafone, and market heavyweight Fletcher Building held steady on NZ$6.09.

Manila slipped 0.58 per cent, or 0.25 points, to 5,205.19.

Philippine Long Distance Telephone Co. shed 0.3 per cent to 2,698 pesos and conglomerate Ayala Corp. slid 4.3 per cent to 457.60 pesos.

Singapore closed down 0.58 per cent, or 17.27 points, at 2,972.04.

Wilmar International fell 1.94 per cent to Sg$3.53 and DBS Group shed 0.56 per cent to Sg$14.12.
Jakarta closed 0.87 per cent, or 35.01 points, lower at 3,984.12.

Coal miner Bukit Asam fell 3.6 per cent to 14,900 rupiah and tin miner Timah slid 3.4 per cent to 1,420 rupiah.

Kuala Lumpur slipped 0.24 per cent, or 3.96 points to finish at 1,625.49.

YTL Corp lost 3.1 per cent to 1.88 ringgit while Telekom Malaysia gained 1.2 per cent to 5.81 ringgit.

Bangkok fell 1.29 per cent, or 15.54 points, to 1,193.13

Banpu lost 1.30 per cent to 454.00 baht, while PTT closed 1.20 per cent lower at 329.00 baht.
Mumbai fell 1.47 per cent, or 256.59 points, to 17,232.55.

IT heavyweight Infosys slumped 8.15 per cent to 2,265.25 rupees while rival Wipro fell 3.98 per cent to 359.3.

Asian markets fall on Wall Street lead

HONG KONG: Asian markets fell in morning trade Wednesday, following a decline on Wall Street and amid renewed scepticism over eurozone efforts to stem the debt crisis.

Tokyo was down 0.37 per cent, Hong Kong slipped 0.25 per cent and Seoul was off 0.36 per cent. Sydney was flat, slipping 0.05 per cent, as was Shanghai which edged down 0.03 per cent.

US stocks closed sharply lower on Tuesday on concerns over American corporate earnings and a slump in confidence registered by a US small-business survey.

The Dow Jones Industrial Average dropped 0.65 per cent, while The S&P 500 fell 0.81 per cent and the tech-rich Nasdaq slipped 1.00 per cent.

Meanwhile, concerns over the eurozone overshadowed the bloc's deal Tuesday to help Spain with 30 billion euros ($37 billion) this month for its distressed banks and an extension to a deadline to cut its public deficit.

"There is a broad framework to deal with the crisis, but uncertainty remains over whether it will work," said Kenichi Hirano, operating officer at Tachibana Securities.

"Participants will likely maintain their wait-and-see approach over the European situation."

Rates of return on Spain's benchmark 10-year bonds eased Tuesday after the deal at a meeting of eurozone finance ministers, slipping to 6.778 per cent, sharply lower than the danger level of 7.023 per cent at close the previous day.

But analysts remained sceptical, warning that European leaders may have once again done too little too late to convince the markets.

"There is really little here that will get Spanish yields to fall to any great degree and there remain questions over how quickly anything can be done in order to bring yields lower," said Derek Halpenny at Bank of Tokyo-Mitsubishi.

Analysts are also concerned Germany's top court could delay ratification of a permanent eurozone rescue fund, the European Stability Mechanism, which is to be used to recapitalise Spanish banks, easing pressure on public bonds.

The constitutional court was expected to rule by the end of the month whether the president should be permitted under constitutional law to sign the legislation into law, but has hinted at a possible further delay.

On currency markets, the euro edged up to $1.2261 in Asian trade compared with $1.2251 in New York late Tuesday. It had dived to a new two-year dollar low in Tuesday European trade of $1.2235.

The common currency was at 97.27 yen, in line with 97.26 yen in New York. The dollar slipped to 79.31 yen against 79.41 yen.

Trade was slow Wednesday, with concerns about China also weighing on markets as investors awaited more key data later in the week, including second-quarter GDP, to gauge how fast the world's second-largest economy is slowing.

Oil prices rose on bargain-hunting. New York's main contract, light sweet crude for August delivery, gained 28 cents to $84.19 a barrel and Brent North Sea crude for delivery in August rose 28 cents to $98.25.

Gold was worth 1574.60 an ounce at 0310 GMT, compared with $1,593.10 late Tuesday.

Asian markets slip on US losses, Europe woes

HONG KONG - Asian markets fell on Thursday as dealers followed losses on Wall Street while selling pressure was also stoked by fears over Spain and nervousness ahead of crucial Greek polls at the weekend.

Tokyo fell 0.69 per cent, Hong Kong lost 0.74 per cent, Sydney eased 0.86 per cent, Shanghai gave up 0.51 per cent and Seoul was 0.14 per cent lower.

With the eurozone's $125 billion loan for Spain's banking sector almost a distant memory, the country has seen its borrowing costs surge to unsustainable levels and traders are growing concerned about its own financial state. On Wednesday Madrid was dealt another blow when Moody's slashed its credit rating by three notches to just one level above junk status, saying the bailout will add to an already shaky debt position.

Spanish 10-year government bonds yields - the rate of return earned by investors - spiked to 6.834 per cent on Tuesday, the highest since the eurozone was founded, and was still sitting at 6.712 Thursday. Anything above 6.0 per cent is considered too high to continue servicing its debts for the medium term and point to investors' concerns about Spain's future as unemployment sits at record highs and public debt rockets.

Eyes are also on Sunday's elections in Greece - its second in six weeks - with dealers fearing a victory for anti-austerity parties that could lead to Athens tearing up a bailout deal, which in turn would likely lead it to exit the eurozone.

French President Francois Hollande said in an interview with Greek Mega Channel television that if it appears from the vote that they do not want to respect the bailout deal "there will be countries in the eurozone which would prefer to end Greece's presence in the eurozone."

In a transcript of the interview provided by his office he added that "the abandoning pure and simple of the (bailout and austerity) memorandum would be seen by many eurozone members as a break up".

The euro bought $1.2560 in early trade, slightly up from $1.2556 in New York late Wednesday. The common currency was fetching 99.76 yen against 99.78 yen.

The dollar was at 79.42 yen against 79.46 yen.

On Wall Street the major indexes fell on the European concerns as well as weak domestic figures.
The Dow closed down 0.62 per cent, the S&P 500 lost 0.70 per cent and the Nasdaq slipped 0.86 per cent.

Traders went into selling mode after May retail sales fell 0.2 per cent from April, and excluding autos shed a heftier 0.4 per cent, the Commerce Department reported.

New York's main contract, light sweet crude for delivery in July, was down 14 cents to $82.48 a barrel and Brent North Sea crude for July delivery shed 23 cents to $96.90.

Gold was worth $1,617.80 an ounce at 0220 GMT, compared with $1,609.60 late Wednesday.

Asian stocks, euro rise as Spain banks get lifeline

HONG KONG: Asian markets and the euro rallied Monday after the eurozone agreed to lend Spain up to US$125 billion to save its banks, but analysts warn the deal is just a sticking plaster for Europe's wider problems.

The weekend also saw China release a mixed bag of data that, despite not being as bad as expected, was unable to soothe dealers' concerns over the world's second biggest economy. But it did provide hope that Beijing will introduce more easing measures.

Tokyo surged 1.96 percent, or 165.64 points, to 8,624.90 and Seoul jumped 1.71 percent, or 31.40 points, to end at 1,867.04.

Hong Kong climbed 2.44 percent, or 451.29 points, to 18,953.63 and Shanghai gained 1.07 percent, or 24.41 points, to 2,305.86.

Taipei rose 1.72 percent, or 120.58 points, to 7,120.23.

Manila closed 1.64 percent higher, adding 81.78 points to 5,075.85.

Sydney was closed for a public holiday.

On forex markets the single currency bought US$1.2630 and 100.50 yen against US$1.2514 and 99.49 yen in New York on Friday.

The US dollar was trading at 79.57 yen from 79.49 yen.

After an emergency video conference lasting more than two hours on Saturday, eurozone finance ministers issued a statement saying they were "willing to respond favourably" to a Spanish plea for help for its stricken lenders.

Spain's Economy Minister Luis de Guindos insisted the handout was not a rescue but a loan that imposes conditions on the banks.

However, it marked a dramatic climbdown for Madrid, which recently denied it needed any outside aid.

EU Economic Affairs Commissioner Olli Rehn said the Spain deal was critical to reassure jittery markets.

"It is a very clear signal to the market, to the public, that the euro (area) is ready to take decisive action in order to calm down market turbulence and contagion," Rehn said.

Stock markets in Europe opened sharply higher on Monday.

In the first few minutes of trade Madrid soared 5.8 percent, with Bankia -- the lender that asked the government for billions of dollars in aid -- rocketing almost 20 percent.

London's FTSE rose 1.80 percent, the Paris CAC 40 surged 1.98 percent and Frankfurt added 2.04 percent.

Monday's surge in the stock markets marked a rebound from recent weeks as traders have become nervous about Spain's precarious financial position as well as a possible Greek exit from the euro area.

The deal was hailed by Germany, France, Japan, China and the United States as well as the International Monetary Fund.

"Sentiment is in a risk-on mode and the news is giving the market a sense of relief," Kengo Suzuki, currency strategist at Mizuho Securities, said.

But Goldman Sachs warned that there were still problems in the eurozone's financial system.

"(It's a) positive near-term development for Spain, and in particular for its banks. But it does not solve Spain's overall fiscal and macroeconomic challenges, which remain substantial", Goldman said in a research note.

It added that the region's crisis "continues to be addressed on a country-by-country basis rather than at a systemic level".

Yuji Saito, director of foreign exchange at Credit Agricole Bank in Tokyo, said questions also remained about details of the bank deal, as uncertainty looms over Greek elections aimed at ending a political stalemate in the debt-riddled nation.

"The agreement won't solve the debt concerns completely because the question remains how and who will give money to Spain, and of course the Greek election next week," Saito told Dow Jones Newswires.

Despite efforts by policymakers, the eurozone crisis has now spread to the region's fourth-biggest economy -- Spain's is twice the combined size of those of Greece, Ireland and Portugal, which have also needed a bailout.

Spain finally sought aid as its borrowing costs on the open markets soared and the price for fixing the banks' balance sheets, heavily exposed to a property bubble that burst in 2008, spiralled.

In China the government said Saturday that inflation eased to a slower-than-forecast 3.0 percent in May while industrial output grew at 9.6 percent year-on-year, also weaker than expected.

And on Sunday figures showed that exports and imports shot up 15.3 percent and 12.7 percent respectively last month.

The numbers will give policymakers room to ease monetary policy further and come days after Beijing cut interest rates for the first time since the end of 2008.

The news from Europe helped oil post big gains.

New York's main contract, light sweet crude for delivery in July, soared US$1.63 to US$85.73 per barrel in afternoon trade. Brent North Sea crude for July delivery added US$2.63 to
US$101.10.

Gold was at US$1,697.50 an ounce at 0810 GMT, compared with US$1,577.05 late Friday.

Asian markets rise after heavy sell-off

HONG KONG: Asian markets climbed on Tuesday and the euro clawed back some of its losses as dealers took a breather from a recent heavy sell-off caused by concerns over the eurozone.

Tokyo rose 0.75 percent as the yen lost some of its recent strength, Hong Kong was 1.03 percent up, Shanghai gained 0.52 percent, Sydney added 1.37 percent and Seoul climbed 0.68 percent.

With little to drive sentiment after the weekend analysts said there was an opportunity to buy after most regional bourses fell into negative territory for the first time in 2012.

The "mostly flat performance in New York, and a pause in the yen's strength are likely to invite some buying" on Tuesday, Rakuten Securities senior market analyst Masayuki Doshida said.

But jitters over the eurozone debt situation and concerns over the state of the global economy are likely to weigh on sentiment, Doshida told Dow Jones Newswires, signalling that any gains may be limited.

On Wall Street the Dow fell 0.14 percent, the S&P 500 was flat and the Nasdaq Composite gained 0.46 percent.

Spanish Prime Minister Mariano Rajoy called at the weekend for a banking union in Europe, which would be able to provide aid to lenders, especially in Spain, a move that was picking up support in France and at the European Central Bank (ECB). However, Germany remained strongly opposed for the moment.

Global markets have been hammered since the start of May as Europe's debt troubles returned after a Greek general election saw a strong showing for anti-austerity parties, while Spain's bank crisis has left the already creaking economy teetering.

Market players will be looking to the result of a conference call later in the day between the Group of Seven finance ministers to discuss Europe's crisis, in particular Spain's travails.

In Europe the ECB will hold a rate-setting meeting Wednesday, with investors looking to see if it will announce any moves to kickstart the region's stuttering economy.

On currency markets the euro -- which last week hit a 23-month low versus the dollar and a near 12-year low against the yen -- regained a little ground.

The common unit bought $1.2534 and 98.18 yen in early Asian trade, up from $1.2494 and 97.89 yen in New York late Monday. The dollar was flat, buying 78.35 yen.

Oil prices rose in early trade. New York's main contract, West Texas Intermediate crude for July delivery, was 85 cents higher at $84.83 a barrel and Brent North Sea crude, also for July, rose by 54 cents to $99.39.

Gold was at $1,621.50 an ounce at 0230 GMT, compared with $1,622.08 late Monday.