Regional markets are lower as ongoing European sovereign debt woes weigh investor sentiment; the Nikkei is down 1.2%, the S&P/ASX is down 0.8%, the HSI is down 1.4%, the Kospi is down 1.1%, the Taiex is down 0.1%, the Sensex is down 1.1%, the Shanghai Composite is down 0.1%, and the STI is down 0.4%. In FX markets the EUR remains under pressure against the USD and JPY as concerns over Europe’s sovereign-debt problems and the outlook for European banks weigh the single currency. The EUR/USD is at 1.2774 from 1.2789 late Thursday in New York, the EUR/JPY is at 98.63 from 98.69, and the USD/JPY is at 77.20 from 77.12. Japanese finance minister Jun Azumi calls for stronger efforts by Europe to stem the region’s debt crisis and the falling euro, saying recent drops in the common currency versus the yen could deal a serious blow to Japan’s European-bound exports. China may expand the scope of a trial real estate tax to include major second-tier cities such as Guangzhou and Nanjing, the state-run Shanghai Securities News reports, citing Jia Kang, head of the Ministry of Finance’s Institute of Fiscal Science. China is open to making its currency more convertible under the capital account, PBOC Gov. Zhou Xiaochuan writes in an essay published in the latest edition of China Finance magazine. Philippine Economic Planning Secretary Cayetano Paderanga says he is confident that the domestic economy will hit the government’s 5%-6% growth target this year. Spot gold is at $1,625.60, up $4.20 from the NY close. February Nymex crude oil futures are down 31 cents at $101.50/bbl.
EasyForexNews Research Team