Asian stocks continue to ease

Investors stay away from buying as escalating tensions on the Greece front take their toll ahead of weekends

Asian markets continued to ease on escalating tensions on the Greece front as the buyers stood on the sidelines ahead of the weekends, awaiting for the proper guidance on whether Greece would avail of IMF and EU finances. Investors were again unnerved by Greece's debt woes after Moody's Investor Services downgraded the country's credit rating and new data showed its budget deficit last year was far bigger than expected. Investors were also waiting to see what global finance officials of the Group of 20 nations, meeting in Washington over the next three days, would do or say to help resolve Greece's debt troubles.

The European Union said yesterday that Greece's budget deficit last year was worse than it previously forecast and could top 14 %of gross domestic product as “off- market swaps” cloud its estimates. The EU's statistics office said that Greece's deficit was 13.6 %last year, higher than the government's April 7 forecast of 12.9 percent. The EU forecast a shortfall of 12.7 %in November.

The US dollar hit a fresh one-year high of 1.3202 against the Euro in the early Asian trades as the Asian indices started the day on a very frail note. Commodities soon turned lower too and selling became the norm for the broad asset markets.

In major markets, Japan's Nikkei 225 stock index dropped 34.63 points, or 0.3 percent, to 10,914.46 and Hong Kong's Hang Seng lost 210.45, or 1 percent, 21,244.49. South Korea's KOSPI shed 0.1 %while Shanghai's stocks fell 0.5 %and Australia's benchmark was down 0.5 percent.

In Thailand, stocks tumbled 1.4 %after a series of grenade attacks late Thursday shook Bangkok amid an ongoing standoff between anti-government protesters and security forces.

However, New Zealand's NZX 50 rose 0.4%, while Philippine stocks advanced 0.2%. as strong earnings from most major local firms released reported earlier in the week supported the sentiments.

In Mumbai, The key benchmark indices gained for the fourth straight day on higher European stocks and gains in US index futures. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally. The BSE 30-share Sensex was provisionally jumped 130.93 points or 0.75%, off close to 20 points from the day's high and up close to 170 points from the day's low. Banking, realty and capital goods stocks rose.

Overnight in the U.S., stocks ended slightly in positive territory, recouping their losses after President Barack Obama's speech on financial reform contained few surprises. The Dow rose 9.37, or 0.1 percent, to 11,134.29. The Standard & Poor's 500 index rose 2.73, or 0.2 percent, to 1,208.67, while the Nasdaq composite index rose 14.46, or 0.6 percent, to 2,519.07.

Oil prices were little changed with the benchmark contract down 10 cents at $83.60 a barrel when last seen. Crude oil for June delivery rose 2 cents to settle at $83.70 yesterday. Oil has been seesawing in a narrow range this week after dropping nearly 2 %l ast week.