Asian markets lower, weak US growth data

Asia’s first full day of trading following the Lunar New Year holiday saw markets mostly slip yesterday after US growth data came in below expectations and profit-takers cashed in recent gains.
The US figures overshadowed hopes that Greece will hammer out a debt reduction deal with its creditors, while investors also look ahead to a European Union summit later in the day.
Tokyo finished 0.54 percent, or 48.17 points, lower at 8,793.05, Seoul dropped 1.24 percent, or 24.28 points, to 1,940.55 and Sydney shed 0.37 percent, or 15.7 points, to 4,272.7.
Hong Kong shed 1.66 percent, or 341.26 points, to end at 20,160.41 and Shanghai, which was closed last week for the Lunar New Year holiday, slipped 1.47 percent, or 34.08 points, to 2,285.04.
Washington on Friday released data showing the economy grew 2.8 percent in the fourth quarter of 2011, much better than the 1.8 percent in the previous three months but slower than the 3.2 percent forecast.
Adding to downbeat sentiment was another batch of figures showing investment and personal consumption, which is a key driver of the economy, grew at a much slower pace than earlier in the year, despite the holiday shopping season.
The data weighed on the Dow Jones Industrial Average, which closed 0.58 percent lower.
In Europe, Greece continued to meet its bondholders in a bid to get them to take a loss on their investments in order for the country to shave 100 billion euros (USD 130 billion) off its 350-billion-euro debt.
Talks have been snagged on the amount of interest to be paid on the remainder.
Agreement, which would see private creditors halve the amount they are owed, is a precondition for further bailout funds from the European Commission, the European Central Bank and the International Monetary Fund.
Greek finance minister Evangelos Venizelos told reporters Saturday he was hopeful of a deal within days.
However, Venizelos on Sunday rejected a German proposal for the EU to take control over its tax and spending decisions, citing national sovereignty.
But the Wall Street Journal reported Berlin’s finance minister issued a blunt warning the eurozone might refuse Greece a fresh bailout, pushing Athens into default, unless it convinces Europe it can overhaul its state and economy.
“Unless Greece implements the necessary decisions and doesn’t just announce them... there’s no amount of money that can solve the problem,” it quoted Wolfgang Schaeuble as saying.
European leaders met in Brussels yesterday, expecting to finalise details on a fiscal pact that aims to reign in budget deficits and endorse a permanent bailout with a lending capacity of 500 billion euros.
The euro bought USD 1.3155 and 100.87 yen in early European trade, compared with USD 1.3221 and 101.37 in New York late Friday.
The dollar was at 76.66 yen against 76.67 yen in New York.
On oil markets, New York’s main contract, West Texas Intermediate crude for delivery in March, shed 53 cents to USD 99.03 per barrel and Brent North Sea crude for March settlement was down 31 cents to USD 111.15.
Gold was at USD 1,720.60 an ounce at 1025 GMT, against USD 1,724.10 late Friday.

(AFP)