Asian markets slip on EU summit concerns

Asian markets fell Monday on pessimism over whether a European summit this week will come up with a plan to address the region's crippling debt crisis.

Last week's announcement by the eurozone's four biggest economies to set aside more than $160 billion to boost growth had little impact on sentiment, with most of the cash coming from existing projects.

Tokyo fell 0.72 percent, or 63.73 points, to 8,734.62, Seoul dived 1.19 percent, or 22.01 points, to 1,825.38 and Sydney closed 0.50 percent, or 20.4 points, lower at 4,027.8.

Shanghai tumbled 1.63 percent, or 36.77 points, to 2,224.11 and Hong Kong closed 0.51 percent, or 97.68 points, lower at 18,897.45.

Attention has turned to the meeting in Brussels on Thursday and Friday, where leaders will try to come up with a plan to support weaker economies and avoid a potentially catastrophic economic collapse.

The talks come as debt woes have spread from Greece to Spain, which is enveloped by a banking and economic crisis, while Italy is also in danger of succumbing.

But despite so much at stake there are concerns the differences between leaders on the best way forward -- with powerhouse Germany almost alone in arguing for austerity -- will mean no concrete or effective plan is agreed.

"We suspect investors will walk away disappointed once again," said Standard Chartered in a note.

"We expect the pressure on both Europe and its financial system to resume, encouraging further depreciation of the euro," it said, according to Dow Jones Newswires.

On Friday, Germany, France, Italy and Spain -- the four biggest economies in the eurozone -- agreed measures worth up to 130 billion euros ($163 billion) to tackle the debt crisis.

French President Francois Hollande said the leaders had agreed to mobilise "one percent of European GDP, that is 120 to 130 billion euros, to support growth" -- a move Germany's Angela Merkel hailed as "an important signal".

Italian Prime Minister Mario Monti said the four leaders had agreed that boosting growth in the eurozone was key to restoring confidence.

The measures include a capital injection for the European Investment Bank, the redirection of some unspent EU regional funds and "project bonds" to finance infrastructure works.

However, much of the money comes from already existing programmes.

In early European forex trade the euro bought $1.2485 and 99.70 yen, down from $1.2569 and 101.10 yen in New York late Friday. The dollar weakened to 79.85 yen from 80.43 yen.

On Wall Street Friday the Dow gained 0.53 percent, the S&P 500 climbed 0.72 percent and the tech-rich Nasdaq 1.17 percent.

On oil markets Monday New York's main contract, light sweet crude for delivery in August, fell 44 cents to $79.32 a barrel in the late afternoon and Brent North Sea crude for August lost 54 cents to $90.34.

Gold was at $1,569.01 an ounce at 1050 GMT, compared with $1,568.20 late Friday.

In other markets:

-- Singapore closed down 0.45 percent, or 12.83 points, at 2,815.26.

Singapore Telecom gained 1.27 percent to Sg$3.20 while Keppel Corp fell 1.09 percent to Sg$9.99.

-- Taipei fell 0.77 percent, or 55.67 points, to 7,166.38.

Taiwan Semiconductor Manufacturing Company ended 0.62 percent lower at Tw$79.6 while leading smartphone maker HTC lost 1.94 percent to finish at Tw$378.5.

-- Manila closed 0.92 percent, or 47.13 points, up at 5,167.20.

Philippine Long Distance Telephone was up 4.88 percent at 2,624 pesos while Alliance Global Group gained 0.67 percent to 12 pesos.

-- Wellington closed flat, edging up 1.93 points to 3,401.13.

Telecom was up 0.41 percent to NZ$2.47 and Fletcher Building off 0.17 percent at NZ$5.98.

-- Jakarta fell 0.82 percent, or 31.93 points, to 3,857.59.

-- Bangkok closed 0.48 percent, or 5.48 points, lower at 1,147.43.

Banpu fell 2.23 percent to 438.00 baht, while PTT dropped 1.27 percent to 310.00 baht.

-- Kuala Lumpur was almost unchanged, nudging up 0.05 points to 1,603.12.

Coal miner Bumi Resources fell 9.1 percent to 1,100 rupiah, nickel miner Vale Indonesia slid 3.0 percent to 2,425 rupiah and cement maker Indocement declined 0.89 percent to 16,700 rupiah.

-- Mumbai was down 0.53 percent or 90.35 points to 16,882.16.

India's largest private aluminium producer Hindalco fell 2.35 percent to 114.5 rupees while the largest commercial bank State Bank of India fell 1.94 percent to 2,114.9.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • OIC asked to complete review of peace pact with MNLF
    OIC asked to complete review of peace pact with MNLF

    The Philippine government is asking the 57-nation Organization of Islamic Cooperation (OIC) to finally complete the tripartite review process of the implementation of the 1996 peace agreement with the Moro National Liberation Front (MNLF). The review – snagged  for several years as government had its hands full with the peace process with rival faction Moro Islamic Liberation Front (MILF) – tackles how the 1996 peace pact with the MNLF has been implemented and centers on the three remaining …

  • Alleged Binay dummies appear in Senate probe
    Alleged Binay dummies appear in Senate probe

    Eight of the resource persons ordered arrested by the Senate finally attended the 21st public hearing of the Senate Blue Ribbon subcommittee into the alleged anomalies involving Vice President Jejomar Binay, but the proceedings turned out to be a review of matters previously presented. For over three hours, the subcommittee heard presentations regarding the alleged hidden assets of Binay and the issue regarding the supposed P200 million in kickbacks he received from a deal between the Boy …

  • DOJ wraps up Mamasapano probe
    DOJ wraps up Mamasapano probe

    The Department of Justice (DOJ) is wrapping up its investigation into the “massacre” of 44 members of the Philippine National Police Special Action Force (PNP-SAF) in Mamasapano, Maguindanao last Jan. 25. A joint team of prosecutors and NBI (National Bureau of Investigation) investigators is about to finish the second part,” Justice Secretary Leila de Lima has told congressmen. She was responding to questions raised by former senior police officer and now Rep. Samuel Pagdilao of party-list …

  • APEC meet in Bataan seen to boost tourism
    APEC meet in Bataan seen to boost tourism

    BALANGA CITY, Bataan – More than 2,000 delegates of the Asia-Pacific Economic Cooperation (APEC) and international media outfits are expected to enjoy the splendid coastline of Bagac town, which faces the West Philippine Sea, as they converge for a workshop in this province next month. …

  • DOST opens P54-M research facility
    DOST opens P54-M research facility

    A P54-million research and development facility of the Department of Science and Technology (DOST) was recently opened in Bicutan, Taguig for scientists and researchers to develop technology and techniques to allow Filipino fashion and clothing designers and manufacturers to produce more mainstream products from local, tropical fabrics like piña, banana and abaca. Science Secretary Mario Montejo said the Innovation Center for Yarns and Textiles (ICYT) is the DOST’s flagship effort at reviving …

  • DFA worried about alleged violations of convicted Pinoys’ rights
    DFA worried about alleged violations of convicted Pinoys’ rights

    Philippine embassy officials in Doha have raised their concern with Qatari authorities over coercion and human rights violations in the alleged forcing of three Filipino workers convicted of spying to provide information and confess to the crime. Speaking to reporters, Department of Foreign Affairs (DFA) spokesman Charles Jose yesterday said the embassy has raised the matter during several high-level meetings with Qatari officials and the national human rights committee in Qatar. “Our embassy …

  • US affirms ‘ironclad’ promise to defend Phl
    US affirms ‘ironclad’ promise to defend Phl

    US Defense Secretary Ashton Carter told his Philippine counterpart on Wednesday that Washington’s pledge to defend the Pacific nation remains “ironclad” and called for an end to land reclamation in the South China Sea, officials said. In talks in Hawaii with Voltaire Gazmin, Philippine secretary of national defense, the Pentagon chief “reaffirmed” the strong ties between the two countries and discussed territorial disputes in the contested waters of the South China Sea, where Beijing has been …

  • ‘Conflict to affect economic growth, stability in SEA’
    ‘Conflict to affect economic growth, stability in SEA’

    Conflict in the South China Sea can affect economic growth and stability in Southeast Asia, New Zealand warned yesterday, amid China’s aggressive reclamation activities in disputed waters. New Zealand is marking its 40 th year of diplomatic ties with the Association of Southeast Asian Nations, and hopes to intensify trade and other linkages with the 10-member grouping. ASEAN members Brunei, Malaysia, the Philippines and Vietnam have overlapping territorial claims with China over the Spratly …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options