Monday, June 20, 2011

ASIA-Shares may edge upward on euro unity

WELLINGTON: Asian stocks may post cautious gains on Monday, as France and Germany hinted at a deal to rescue Greece helped global markets recover some of their recent losses, however caution is still seen dominating.

France and Germany said they would ask banks holding Greek debt to voluntarily shoulder some of the burden. Meanwhile, Greece's prime minister appointed a new finance minister to try to push through harsh economic reforms.

News of the pact helped Wall Street on Friday, with the Dow up 0.4 percent and the S&P 500 up 0.3 percent.

Despite the gains bearish sentiment is still seen abounding in the market, until a long-term solution to the euro zone debt crisis is struck, with safe-haven gold rising while oil prices fell.

The tech-laden Nasdaq fell 0.3 percent, as poor results from blackberry-maker Research In Motion Ltd's saw its U.S.-listed shares sink 21.5 percent, dragging down other top TECHNOLOGY [] names such as Apple Inc.

Asian stocks listed on Wall Street fell 0.2 percent, while world stocks, as measured by the MSCI world equity index, were up 0.4 percent, and the Thomson Reuters global stock index was flat.

British shares rose 0.3 percent while European shares added 0.2 percent on a relief rally.

The euro gained against the U.S. dollar, which was also weighed down by mixed economic data, sending it lower against the yen.

Japanese markets are set to eke out gains despite the firmer currency, with Nikkei futures traded in Chicago 40 points above the last closing level in Osaka.

Australian stocks will likely make a flat start as base metal prices were subdued, with share price index futures up 3 points to 4,482, a 2.9 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters

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