Updated on
Summary Investors are looking for a plan to keep debt-laden Greece in the euro.
Asian markets were mostly lower on Thursday and the euro sat near 22-month lows against the dollar after European leaders failed to agree a coherent plan to save Greece from exiting the eurozone.While a summit in Brussels saw a pledge of support for Athens it highlighted divisions between France and Germany on dealing with the crisis.Tokyo fell 0.29 percent by the break, Hong Kong shed 0.47 percent, Shanghai gave up 0.22 percent, Sydney was flat and Seoul gained 0.16 percent.Investors had been looking for the get-together to come up with a plan to keep debt-laden Greece in the euro with a general election next month expected to see a triumph for anti-austerity parties, who have promised to tear up a bailout deal.Such a move would likely lead to Athens leaving the euro project, which analysts fear would have a knock-on effect for other troubled economies such as Spain and Italy.EU president Herman Van Rompuy told journalists after the summit: We want Greece to remain in the euro area while respecting its commitments.And French President Francois Hollande said there was no time to waste in encouraging growth in the eurozone but German Chancellor Angela Merkel stood steadfast against his calls for jointly pooled eurozone debt, or eurobonds.I say that we have to act straightaway for growth ... otherwise there will still be doubt on the markets, said Hollande, in his first summit since ousting Nicolas Sarkozy earlier this month.Merkel faced pressure to give ground on her hardline austerity doctrine, which has seen waves of protests across Europe and many of her allies -- including Sarkozy -- kicked out of office.However, she rejected the call for eurobonds on the grounds they are not a contribution to stimulating growth in the eurozone and adding that such instruments ran contrary to EU treaties.On Wednesday Greeces finance ministry categorically denied that treasury officials from the other 16 eurozone member states were told this week to reflect on what a Greek exit would mean for their economies.In early Asian trade the euro bought $1.2573, compared with $1.2582 in New York late Wednesday. The common currency had slumped to 1.2545 in Europe Wednesday, its lowest since July 2010.And against the Japanese currency, the euro eased to 99.82 yen from 99.96 yen after falling below 100 yen in New York for the first time since February.The dollar was at 79.50 yen, from 79.43 yen.European stock markets closed sharply lower. Londons benchmark FTSE 100 index of top companies plunged 2.53 percent, the Frankfurt DAX 30 fell 2.33 percent, the CAC 40 in Paris tumbled 2.62 percent.Italys FTSE Mib dived 3.68 percent and Madrid sank 3.31 percent to close at its lowest level since May 2003.On Wall Street the Dow was flat, the S&P 500 rose 0.17 percent and the tech-rich Nasdaq added 0.39 percent.Oil prices rose. New Yorks main contract, West Texas Intermediate (WTI) crude for delivery in July was up 64 cents to $90.54 per barrel while Brent North Sea crude for July gained 92 cents to $106.48 in morning trade.Gold was $1,560.80 an ounce at 0240 GMT, compared with $1,556.25 late Wednesday.
