Euro down on Greece fears, Asian equities mixed

THE euro weakened Tuesday after the showdown debt talks between Greece and its creditors collapsed, raising the possibility the country will be dumped out of the eurozone.

However, many Asian equity markets were unfazed by the trouble in Europe as trade begins to wind down in several bourses before the Lunar New Year holiday at the end of the week.

Tokyo fell 0.10 percent, or 17.68 points, to 17,987.09 and Sydney lost 0.52 percent, or 30.5 points, to 5,858.2.

But Seoul gained 0.16 percent, or 3.22 points, to 1,961.45, while Shanghai rose 0.76 percent, or 24.55 points, to 3,246.91 and Hong Kong advanced 0.24 percent, or 58.35 points, to 24,784.88.

“Markets recognised the discussions were going to be difficult, so I don’t think this changes people’s expectations dramatically,” Angus Gluskie, managing director at White Funds Management in Sydney, told Bloomberg News.

“But it is a key point of uncertainty for investment markets, so it’s likely to mean that investors will continue to be cautious.”

The closely watched meeting Monday broke down without agreement on Greece’s debt after Athens refused eurozone finance ministers’ demands that it apply for an extension to its bailout.

Eurogroup head Jeroen Dijsselbloem said the country had the rest of the week to make the request, with the 240 billion euro ($270 billion) lifeline expiring at the end of the month.

But an Athens source dismissed the demand to stick to its current bailout as “absurd”.

Greece’s new left-led government swept to power last month on a platform of overhauling the terms of the austerity-laden financial aid package, which it says has crippled the economy.

Finance Minister Yanis Varoufakis is looking for a six-month bridging loan to give Greece time and financial help to negotiate a new deal.

However the 18 other eurozone nations, led by Germany, say any changes must be within the current programme.

The breakdown hit the euro, which sank to $1.1351 and 134.47 yen from $1.1390 and 134.53 yen in London on Monday.

It was also sharply down from the $1.1421 and 135.43 yen levels earlier Monday in Tokyo.

The dollar bought 118.52 yen against 118.47 yen.

US markets were closed Monday for a public holiday.

Oil prices moved higher after key crude producer Kuwait signalled that the recent rise in prices would hold, while resurgent violence in Libya also provided support.

US benchmark West Texas Intermediate for March delivery rose 41 cents to $53.19, while Brent crude for April gained 51 cents to $61.91.

Gold fetched $1,220.88 an ounce, against $1,233.33 on Monday.

In other markets:

— Wellington eased 0.14 percent, or 8.03 points, to 5,750.21.

Spark was down 1.04 percent at NZ$3.315 and Fletcher Building slipped 0.23 percent to NZ$8.74.

— Manila closed 0.11 percent, or 8.75 points, higher at 7,793.40.

Megaworld gained 0.56 percent to 5.36 pesos and Energy Development Corp. rose 0.46 percent to 8.70 pesos. But Universal Robina fell 1.10 percent to 215.20 pesos.

— Bangkok closed down 1.26 percent, or 20.29 points, at 1,587.75.

Kasikorn Bank fell 1.34 percent to 221.00 baht, while oil company PTT lost 2.21 percent to 354.00 baht.

— Jakarta ended up 0.23 percent, or 12.01 points, at 5,337.501.

Tin mining company PT Timah lost 3.26 percent to 1,040 rupiah, while glue manufacturer Duta Pertiwi Nusantara gained 7.14 percent to 5,250 rupiah.

— Kuala Lumpur’s main stock index was flat, creeping up 1.20 points to close at 1,810.09.

Tenaga Nasional rose 0.86 percent to 14.14 ringgit, Telekom Malaysia added 0.29 percent to 6.88 while Malayan Banking was flat at 9.20 ringgit.

— Singapore fell 0.33 percent, or 11.25 points, to close at 3,415.91.

Singapore Airlines tumbled 0.57 percent to Sg$12.13 and Singapore Telecom eased 0.94 percent to Sg$4.24.

Taipei and Mumbai were closed for public holidays.