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.

  • Couple married 67 years holds hands in final hours together
    Couple married 67 years holds hands in final hours together

    FRESNO, Calif. (AP) — After spending 67 years together as devoted husband and wife, there was no question how Floyd and Violet Hartwig would end their lives — together. …

  • Lupita Nyong'o's $150,000 Oscars dress stolen from hotel
    Lupita Nyong'o's $150,000 Oscars dress stolen from hotel

    The $150,000 pearl-studded, custom-made Calvin Klein dress worn by Oscar-winning actress Lupita Nyong'o at this year's Academy Awards has been stolen, police said on Thursday. The gown, embellished with 6,000 natural white pearls, was stolen from Nyong'o's room at the London Hotel in West Hollywood, during the day on Wednesday, a spokesman for the Los Angeles County Sheriff's Department in West Hollywood said. "Ms Nyong'o was not in the room at the time of the theft," Deputy John Mitchell …

  • US-led strikes on IS after group seizes 220 Christians
    US-led strikes on IS after group seizes 220 Christians

    The US-led coalition has carried out air strikes against the Islamic State group in northeastern Syria, where the jihadists have launched a new offensive and kidnapped 220 Assyrian Christians. The raids on Thursday struck areas around the town of Tal Tamr in Hasakeh province, the Syrian Observatory for Human Rights said, without giving information on possible casualties. The town remains under the control of Kurdish forces, but at least 10 surrounding villages have been seized by IS, along …

  • 3 Pinays on Forbes power women list
    3 Pinays on Forbes power women list

    Three Filipina executives, who are all daughters of known business tycoons in the country, made it to Forbes’ list of the 50 most powerful businesswomen in Asia. Teresita Sy-Coson, vice chairman of SM Investments and chairman of BDO Universal Bank, was included in the list for the fourth year in a row since its inception. “Under her (Sy-Coson) lead SMIC became the largest listed company on the Philippine Stock Exchange by market cap. Also in the 2015 list is 70-year-old Helen Yuchengco-Dee, …

  • Militants abduct more Christians, smash ancient artifacts
    Militants abduct more Christians, smash ancient artifacts

    BEIRUT (AP) — Islamic State militants seized more Christians from their homes in northeastern Syria in the past three days, bringing the total number abducted by the extremist group to over 220, activists said Thursday. …

  • 13 of 15 SAF survivors to leave PNP hospital
    13 of 15 SAF survivors to leave PNP hospital

    Thirteen of the 15 Special Action Force (SAF) policemen who survived the bloody firefight with Muslim rebels in Mamasapano last month are ready to go home after a month of medical treatment, a police official said yesterday. Philippine National Police (PNP) spokesman Chief Superintendent Generoso Cerbo Jr. said the two remaining survivors will have to stay in hospital for further treatment, one of whom has shrapnel embedded near his spine. One of the two SAF commando survivors is still …

  • US sends spy plane to patrol disputed sea
    US sends spy plane to patrol disputed sea

    The United States has deployed its newest and most advanced surveillance aircraft for patrols over the West Philippine Sea and South China Sea. The P-8A Poseidon aircraft completed more than 180 flight hours from Feb. 1 to 21 from Clark Air Base, according to the US Navy’s 7th Fleet. …

  • China subs outnumber US fleet – admiral
    China subs outnumber US fleet – admiral

    China is building some “fairly amazing submarines” and now has more diesel- and nuclear-powered vessels than the United States, a top US Navy admiral told US lawmakers on Wednesday, although he said their quality was inferior. Vice Admiral Joseph Mulloy, deputy chief of naval operations for capabilities and resources, told the House Armed Services Committee’s seapower subcommittee that China was also expanding the geographic areas of operation for its submarines, and their length of …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options