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Summary Asian markets fell as disappointment at Bernanke's failure overshadowed Chinese interest rate cut.
Asian markets fell Friday as European debt woes and disappointment at US Fed chief Ben Bernankes failure to commit to any new stimulus measures overshadowed a surprise Chinese interest rate cut.Japanese shares were dented despite figures showing the economy grew faster than first thought, while the strong yen hit the countrys exports.Tokyo fell 1.96 percent by the break, Hong Kong slipped 0.81 percent, Seoul eased 0.49 percent, Shanghai lost 0.30 percent and Sydney was 0.94 percent off.In closely watched comments Thursday Bernanke told Congress he was upbeat about moderate growth in the worlds top economy and was prepared to take action to provide support, but gave no hint of stimulus measures.Traders had been hoping for an indication that the central bank was willing to step in to protect the country from headwinds in Europe as well as weakness in China.Chairman Bernankes testimony to the Senate was balanced, disappointing those who were looking for a clear signal that a US economic recovery was on its way, Barclays Capital said in a note to clients.Adding to the gloom was news that Fitch had slashed Spains credit rating by three notches Thursday, from A to BBB -- just above junk -- and warned it would likely stay in recession this year and next.The cut moved Madrid a step closer to needing an international bailout, following the path of Greece, Ireland and Portugal, as it grapples with a fiscal crisis as well as a struggling banking sector.Spains banks now needed around 60 billion euros ($75 billion) and as high as 100 billion euros ($125 billion) in a more severe stress scenario, Fitch said.The euro fetched $1.2552 and 100.05 yen in early Asian trade, compared with $1.2561 and 100.01 yen late Thursday in New York.The common currency had risen in US trade on hopes for European Central Bank action to help quell the eurozones financial turmoil.The dollar was at 79.70 yen against 79.58 yen.Global concerns deflected attention from Beijings decision to cut interest rates for the first time in three-and-a-half years as it looks to kickstart its own economy, which has been hit by a series of downcast data in recent months.The Peoples Bank of China late Thursday said it would cut rates by 25 basis points -- the first cut since late 2008 during the financial crisis -- while also easing restrictions on deposit and lending rules.In Japan the government said the economy grew 1.2 percent in January-March from the previous three months, revising upward a preliminary figure of 1.0 percent growth.On an annualised basis, the economy grew a revised 4.7 percent in the quarter, higher than a preliminary 4.1 percent rise, according to the Cabinet Office.However, exports took a hit after the yen hit record highs against the dollar late last year while surging energy prices sent import costs higher, denting the countrys trade surplus.On Wall Street the Dow rose 0.37 percent, extending Wednesdays 2.4 percent rally, the S&P 500 was flat and the tech-rich Nasdaq fell 0.48 percent.Oil prices eased, with New Yorks main contract, light sweet crude for delivery in July, down $1.61 to $83.21 a barrel and Brent North Sea crude for July delivery shedding $1.29 to $98.64.Gold was at $1,570.30 an ounce at 0310 GMT, compared with $1,625.33 late Thursday.
