Asian shares mixed amid euro fears

HONG KONG: Asian stocks were flat Friday as bargain buying and positive US data were offset by eurozone debt woes amid a warning Greek default could be as disastrous as the collapse of Lehman Brothers.

Seoul added 0.34 percent and Sydney gained 0.90 percent while Tokyo was flat by the break.

Hong Kong fell 0.20 percent and Shanghai fell 0.10 percent a day after both bourses closed at around nine-month lows amid fears of fresh tightening measures in China.

Some much-needed upbeat news from the United States provided buying impetus and the Dow ended in positive territory, adding 0.54 percent.

The Labor Department said new jobless claims fell to 414,000 in the week ending June 11, a decline of four percent from the previous week.

Another report showed that US housing starts grew more than expected last month, rebounding 3.5 percent from April.

The figures provided some relief to investors who are growing concerned about the global recovery, especially the world's biggest economy as recent data on jobs and manufacturing have come in well below expectations.

Attention is also on Europe, where tension is building over Greece's debt woes, with one European analyst warning of a "Lehman Moment" for the eurozone, referring to US bank Lehman Brothers, whose 2008 collapse preceded the financial crisis.

In Athens Prime Minister George Papandreou appealed for unity from his own lawmakers Thursday after two deputies quit and the International Monetary Fund (IMF) insisted there can be no backsliding on agreed austerity measures.

As he tried to get backing for cuts that will allow Greece to receive new funding to avoid default, the premier said: "The challenge before us, the moment we are facing, is historic.

"Either Europe will make history or history will wipe out the European Union."

Officials say they are confident eurozone finance ministers will agree at meetings Sunday and Monday on the disbursement of the latest slice of Greece's 110-billion-euro ($155 billion) bailout loan.

But the IMF insists the disbursement of this tranche is still contingent on Greece pushing through the latest round of austerity measures it had agreed to earlier.

On money markets the euro fetched $1.4210 from $1.4209 late Thursday in New York while it dipped to 114.41 from 114.63 yen in New York.

The dollar eased to 80.64 yen from 80.67 yen.

Oil was up in Asian trade, with New York's main contract, light sweet crude for July delivery, gaining 21 cents to $95.16 a barrel while Brent North Sea crude for August rose 25 cents to $114.27.

Gold opened at $1,528.00-$1,529.00 an ounce in Hong Kong, up from Thursday's close of $1,526.00-$1,527.00. (AFP)