Thursday, July 21, 2011

ASIA-Shares to drift as debt resolutions awaited

WELLINGTON: Asian stocks are set for a mixed start on Thursday, as global stocks pushed higher on strong earnings but uncertainty over sovereign debt issues in the United States and Europe will likely keep investors wary.

Hopes that a deal would be struck to rescue Greece got a lift from news that French and German officials had agreed a position on a financial package, although details were not released.

The main Wall Street indices defied a better day on world markets to drift lower, losing between 0.1 percent and 0.4 percent as the stalemate over the U.S. debt ceiling overshadowed Apple hitting a record high after its strong results.

Other TECHNOLOGY [] shares were lacklustre, however, with Yahoo Inc tumbling 7.6 percent after reporting poor results, and Microsoft Corp dipping ahead of its earnings later on Thursday.

However, banks had a solid day on the good report by Bancorp, sending the KBW Bank index 1.5 percent higher.

Asian stocks listed on Wall Street gained 0.87 percent while world stocks, as measured by the MSCI world equity index , rose 0.59 percent.

British shares rose 1.1 percent while European ''shares rose 1.3 percent, on strong results and hopes a summit of euro zone leaders later on Thursday would strike a deal to rescue Greece.

The euro rose against the U.S. dollar as dealers took an optimistic view of the summit, while the safe-haven yen weakened slightly.

Japanese markets are set to build on Wednesday's strong gains, with Nikkei futures traded in Chicago 55 points above the last closing level in Osaka.

Australian stocks are set to struggle as metal prices weakened, with share price index futures down 7 points to 4,518, a 31.7 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters

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