Asian markets rise ahead of European summit

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Asian markets rise ahead of European summit

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Tokyo gained 0.98 percent by the break, Hong Kong was 0.81 percent higher.

22 May,2012 10:34 am

Asian markets rose Tuesday following a strong performance on Wall Street and on hopes EU leaders will come to an agreement on dealing with the eurozone debt crisis at an upcoming summit.Tokyo gained 0.98 percent by the break, Hong Kong was 0.81 percent higher, Sydney added 0.79 percent, Shanghai rose 0.59 percent, and Seoul climbed 1.16 percent.Attention is now on an informal meeting in Brussels on Wednesday where the crippling debt crisis that threatens the eurozone project will be top of the agenda.People are feeling a little more optimistic because European leaders look as though they might put some strong growth policies in place rather than just austerity, Stan Shamu, market strategist at IG Markets in Australia, told Dow Jones Newswires.Ahead of the talks dealers were given a boost by Germany and France who said Monday they would do whatever it takes to keep Greece in the euro amid political turmoil in the country.We agreed that we have to do everything to keep Greece in the euro club, said German Finance Minister Wolfgang Schaeuble after the first official meeting with his new French counterpart Pierre Moscovici.Schaeuble hosted Moscovici to thrash out a common line for the summit, after Germany was seen as being more isolated over its drive for austerity as the answer to the ongoing debt crisis.Greece has returned as the key issue in Europe after polls on May 6 saw 70 percent of the electorate vote against pro-austerity parties but with no overall winner.Many now fear a new vote on June 17 will see a victory for parties who campaigned against a bailout plan, which would in turn lead Athens to default on its debt obligations and leave the euro.There are also concerns about the state of Spains banks, which are staggering under huge bad loans after a 2008 property crash. Economy Minister Luis de Guindos forecast the Spanish economy would contract this quarter at the 0.3 percent rate it has for the past half year.On currency markets the euro eased from a small rally in New York that was fuelled by hopes for the EU meeting.It bought $1.2794 and 101.54 yen in early Asian trade Tuesday, compared with $1.2815 and 101.62 yen in New York late Monday. But the single currency was up from the $1.2779 in Asia Monday and the four-month low of $1.2642 seen Friday.The dollar was at 79.41 yen Tuesday against 79.30 yen.On Wall Street Monday the main indexes posted strong gains. The tech-rich Nasdaq was the best performer, up 2.46 percent as a strong showing from two of its biggest firms Apple and Google outweighed an 11 percent slump in market debutant Facebook.The Dow finished up 1.09 percent and the S&P 500 climbed 1.60 percent.Oil prices were up in early Asian trade Tuesday, with New Yorks main contract, light sweet crude for delivery in June, advancing 28 cents to $92.85 a barrel. Brent North Sea crude for July delivery gained 26 cents to $109.07.Gold was worth $1,591.70 an ounce at 0300 GMT, compared with $1,596.40 late Monday.