Asian markets mixed on Greek uncertainty
A woman talking on a mobile phone walks by the electronic stock board of a securities firm in Tokyo. Asian markets were mixed in cautious trade on Thursday, May 10, 2012. AP PHOTO/ITSUO INOUYE
HONG KONG—Asian markets were mixed in cautious trade on Thursday as Greek politicians struggled to form a coalition and European officials warned its latest tranche of bailout cash could be the last.
While confidence was given a slight lift by news that Athens would get its much-needed latest International Monetary Fund-European Union handout, Greece was told the next one could be withheld if a functioning government is not in place.
Adding to the uneasy mood were results from China showing import growth in April virtually unmoved while exports increased less than expected, adding to ongoing concerns about the world’s No. 2 economy.
Tokyo fell 0.39 percent, or 35.41 points, to 9,009.65 and Seoul slipped 0.27 percent, or 5.36 points, to 1,944.93 while Sydney gained 0.48 percent, or 20.5 points, to 4,295.6.
Hong Kong fell 0.51 percent, or 103.36 points, to 20,227.28 and Shanghai was flat, edging up 1.64 points to 2,410.23.
Global markets have been sent into a spin since ruling parties in Greece and France were swept aside by voters in a backlash against strict austerity policies introduced to fight the eurozone’s crippling debt crisis.
The two main parties in Greece – the conservative New Democracy and Socialist Pasok – won less than a third of the national vote against groups campaigning against further cuts to services.
But with New Democracy and the radical left-wing Syriza, which came second on Sunday, saying they were unable to agree a coalition, analysts expect another election next month.
The delicacy of the situation was made clear by Luxembourg Foreign Minister Jean Asselborn on Wednesday, when he warned that future loans would not be forthcoming unless a stable government was set up.
“We have to say to the Greek people right now that the situation is serious, that no European Union country will be able to release even a portion of the 130 billion euros ($170 billion) for the Greeks if there is no government that respects the rules and manages the disbursed money,” he said in Brussels.
The events came as EU officials said Greece would receive a 4.2-billion-euro loan as expected on Thursday, but a further one billion would be held back until eurozone finance ministers meet on Monday.
That provided some support for the euro, which had tumbled in New York late Wednesday.
The single currency bought $1.2947 and 103.16 yen in early European trade, stronger than $1.2944 and 102.98 yen in New York late Wednesday.
The dollar was changing hands at 79.65 yen against 79.69.
On Wall Street, the Dow fell 0.75 percent, the S&P 500 shed 0.67 percent and the Nasdaq dropped 0.39 percent.
On top of the Greek troubles, Spain’s debt woes are coming back into view as reports of banking problems sent the market-borrowing rate on government bonds shooting above the critical 6.0 percent level.
Chinese authorities said the economy posted a trade surplus of $18.4 billion in April, better than expectations but it came on the back of weak imports and exports.
The data showed imports edged up just 0.3 percent year on year in April – well off the 10 percent expected – while export growth slowed to 4.9 percent, weaker than the 8.5 percent increase forecast.
Oil prices fell in Asian trade, with New York’s main contract, light sweet crude for delivery in June, losing 39 cents to $96.42 per barrel in the late afternoon and Brent North Sea crude for June delivery shedding 64 cents to $112.56.
Gold was at $1,591.25 an ounce at 1050 GMT, compared with $1,585.50 late Wednesday.
In other markets:
— Singapore ended flat, edging up 2.69 points to 2,903.60.
Fraser and Neave gained 2.79 percent to 6.99 and Singapore Telecom advanced 1.58 percent to 3.21.
— Wellington closed up 0.27 percent, or 9.58 points, at 3,569.05.
Telecom rose 0.75 percent to NZ$2.67 while Chorus gained 1.59 percent to NZ$3.20.
— Manila fell 0.44 percent, or 22.69 points, to 5,192.10.
Alliance Global Group shed 5.55 percent to 12.94 pesos while Bloomberry Resorts fell 4.21 percent to 9.10 pesos.
— Taipei added 0.11 percent, or 8.30 points, to 7,484.01
TSMC was 0.83 percent higher at Tw$85.3 while Chunghwa Telecom fell 0.89 percent to Tw$89.4.
— Jakarta added 0.11 percent, or 4.57 points, to close at 4,133.63.
— Kuala Lumpur rose 0.20 percent, or 3.16 points, to 1,588.06.
Budget carrier AirAsia gained 0.5 percent to 3.78 ringgit, while plantation giant Sime Darby added 0.3 percent to 9.80 ringgit. Transport company MMC lost 1.1 percent to 2.71 ringgit.
— Bangkok fell 1.38 percent, or 16.60 points, to 1,190.65.
— Mumbai fell 0.36 percent, or 59.53 points, to 16,420.05.
