Asian markets down amid ECB loan skepticism

HONG KONG: Asian markets slipped on Thursday as traders questioned whether a European Central Bank move to pump cheap cash into banks would be enough to unclog credit markets and ease the region's debt crisis.

Following its announcement that it would provide three-year loans at rates as low as one percent, a total of 523 banks snapped up a record 489.2 billion euros ($641 billion).

However, some market-watchers said the fact that so many institutions jumped in so quickly highlighted the precarious state that they were in.

Tokyo was 0.62 lower by the break, Hong Kong fell 0.60 percent, Sydney shed 0.99 percent, Seoul was 0.27 percent off and Shanghai dropped 1.08 percent.

The euro, which jumped as high as $1.3188 in New York on Wednesday, eased in Asia Thursday to $1.3041, while it also fell to 101.74 yen from 101.88 yen.

The dollar was at 78.07 yen, compared with 78.05.

New York's main contract, light sweet crude for delivery in February, added 40 cents to $99.07 a barrel and Brent North Sea crude for February gained 13 cents to $107.84.

Gold was trading at $1,611.55 an ounce at 0200 GMT, against $1,637.97 an ounce late Wednesday.