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Euro, Korea worries drag on choppy Asian trade
AFP - Monday, November 29
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Euro, Korea worries drag on choppy Asian trade
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HONG KONG (AFP) - – A sagging euro and tensions on the Korean peninsula made for a jittery day on Asian markets Monday, but signs of a strong US shopping season lifted Tokyo and Sydney while Hong Kong also revived.
Tokyo's Nikkei Index ended the session up 0.86 percent, or 86.43 points, at 10,125.99, while Sydney's S&P/ASX 200 edged up 0.44 percent, or 20.2 points, to 4,618.5.
Hong Kong's Hang Seng was up 0.12 percent after lunch, but Shanghai's Composite Index was off 0.64 percent and Seoul's Kospi ended the day down 0.33 percent, or 6.26 points, at 1,895.54.
Japanese consumer electronics stocks such as Sony did particularly well on early signs of an enthusiastic start to the US shopping season over Thanksgiving, while a strong dollar also provided support.
However, the euro touched a fresh two-month low in Tokyo trade after Sunday's unveiling of an international bailout for Ireland, as traders awaited reaction on European markets amid concern about other eurozone countries.
"We think that rallies will remain limited in the euro and expect concerns about the other peripheral euro-area countries to continue to weigh further on the euro," Barclays Capital strategist David Forrester told Dow Jones Newswires.
Speaking in Tokyo, Bank of France governor Christian Noyer said he had "no doubt" that the 85 billion euro bailout of Ireland agreed by the European Union and International Monetary Fund would be successful.
"The package has been clearly designed by the IMF and the EU and you can rely on the multi-decade experience of the IMF to put in place plans which are totally credible," he told reporters.
However the euro fell to 1.3181 dollars -- its lowest since September -- before recovering to 1.3232 in afternoon trading in Tokyo, compared with 1.3247 in US markets Friday afternoon. The currency was quoted at 111.30 yen, flat from the level in US trade, after dipping to 111.14 yen in Tokyo morning trade.
The dollar stood at 84.12 Japanese yen, slightly up from 84.07 yen on Friday, reflecting its safe-haven status.
On top of the eurozone jitters sentiment was also dented by tensions between the two Koreas follow a deadly exchange of cross-border fire last week, and pessimism among traders of Chinese stocks about measures to cool the economy.
In Shanghai, Zhang Yuheng at Capital Securities said investors were likely to remain on the sidelines until an annual Central Economic Work Conference in early December focussed on economic policy.
Wall Street ended a rollercoaster week on a low Friday.
The Dow Jones Industrial Average fell one percent for the week, while the S&P 500 was down 0.7 percent as the news was dominated by Ireland's 85 billion euro bailout from the European Union and International Monetary Fund.
Oil rose in Asian trade Monday, but the gains were seen as possibly brief due to the strengthening of the safe-haven dollar.
In afternoon trade, New York's main contract, light sweet crude for January delivery, gained 56 cents to 84.32 dollars a barrel.
Brent North Sea crude for January gained 53 cents to 86.11 dollars.
Gold opened at 1,355.00-1,356.00 dollars an ounce in Hong Kong, down from Friday's close of 1,366.00-1,367.00 dollars.
In other markets:
-- Taipei rose 0.66 percent, or 55.02 points, to 8,367.17 after local elections in which the ruling Kuomintang won three of the five mayoral posts up for grabs Saturday.
Huaku Development closed 3.44 percent higher at 87.2 Taiwan dollars while Ambassador Hotel gained 3.49 percent to 47.5.
-- Wellington rose 0.19 percent, or 6.14 points, to 3,270.38.
-- Manila was closed for a public holiday.
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