Asian markets drift lower after recent gains

Stocks mostly end in red as dollar rallies and investors book profits

Asian stocks slipped today after investors booked profits after the recent flurry of gains as the US dollar straightened and the commodity prices slipped sharply. Greece is likely o need up to 75 billion euros in new debt between now and 2013 as it cuts its budget deficit back to 3% from a reported 12.7% of GDP. The Greek economy will contract this year and may be next year too as government spending cuts hit and taxes rise, leading to persistent worries on economic even as the IMF and EU sponsored bailout supports the government finances now. Dollar appreciated from a three week lows today and hurt the sentiments for the risky assets.

Japanese stocks fell for the first time in three days as the yen strengthened, hurting the earnings prospects for exporters. The Nikkei 225 Stock Average fell 0.8 % to 11,161.23 at the close in Tokyo. The broader Topix index sank 0.6 % to 988.44, with about five stocks declining for every two that advanced.

The Australian market also closed negative territory, dragged down by resource stocks as traders resorted to profit taking after the market indices rose to a 18-month high in the previous session. The benchmark S&P/ASX200 Index declined 32.70 points, or 0.66% to close at 4,952, while the All-Ordinaries Index ended at 4,978, representing a loss of 33.20 points, or 0.66%.

On the economic front, results of a new survey conducted by the National Australia Bank revealed that its business confidence index stood at 16 in March, down from 19 reported in the previous month. Despite the fall in confidence, confidence remains at very robust levels and is still moving up in trend terms, the bank noted.

In a separate statement, the Australian Bureau of Statistics revealed that housing finance for owner occupation, excluding alterations & additions, declined a seasonally adjusted 4.4% month-on-month in February to A$14.09 billion. In contrast, personal finance edged up 0.7% to A$6.99 billion, while commercial finance increased 5.6% to A$28.08 billion and lease finance climbed 0.8% to A$365 million, all in seasonally adjusted terms.

However, Chinese stocks rose 1.02 % to its highest close in nearly three months as institutions bought large caps such as banking stocks, ahead of the launch of the country's first index futures on Friday. The Shanghai Composite Index .SSEC finished the day at 3,161.251 points, its highest close since Jan. 19 and reversing a 0.51 % fall on Monday.

New Zealand shares were mixed and the NZX 50 Index fell marginally by 4.2, or 0.1%, to 3309.93. In other markets, Philippine stocks gained 0.2% while markets in Thailand were shut for a public holiday

In Mumbai, the key benchmark indices registered small losses at close tracking weak global stocks. The BSE 30-share Sensex was provisionally down 30.39 points or 0.17%, off close to 60 points from the day's high and up close to 85 points from the day's low. Infosys led a rally in IT pivotals after the IT sector bellwether issued a stronger revenue guidance in dollar terms which indicated robust outsourcing demand.

Crude slipped today in tandem with the rising US dollar as investor's eyed the weekly US inventory data due tomorrow. The US crude oil inventories have gone up for the last 10 weeks and at a seasonally high level, undercutting the prospects of a supply crunch in the peak summer driving season. The commodity broke below $84 per barrel levels and currently trade at $83.77, down 57 cents from the previous close.