Asian markets lower amid eurozone meet, China data

HONG KONG: Asian markets mostly fell on Tuesday, shrugging off an agreement by eurozone finance ministers to help crisis-hit Spain, and as data showed that China's trade surplus widened in June.

The euro edged down against major currencies, with analysts saying the deal to offer Spain 30 billion euros ($37 billion) this month to help its distressed banks was far from enough to resolve the eurozone debt crisis.

Hong Kong slipped 0.37 percent, Shanghai was off 0.54 percent, Sydney was down 0.38 percent, while Seoul fell 0.58 percent. Tokyo however rose 0.27 percent on bargain-hunting following a decline on Monday.

Regional bourses slumped on Monday on disappointing US jobs data and fears that economic indicators being released this week would show more evidence of a slowdown in China.

After creeping forward in early trade Tuesday, Asian bourses slipped following the eurozone announcement and the Chinese trade figures.

The Spain agreements were "more or less details of procedures and unlikely to affect the entire picture of the eurozone trouble", said Yosuke Hosokawa, head of FX sales team at Sumitomo Mitsui Trust Bank.

After nine hours of talks in Brussels, Jean-Claude Juncker, the Luxembourg premier who also heads the Eurogroup, said a memorandum of understanding for Spain would be formally signed "in the second half of July", with the money available by the end of the month.

Spain, under increasing pressure as sceptical markets pushed its borrowing costs dangerously high again, had called for up to 100 billion euros in direct aid at a June 28-29 "breakthrough" EU summit.

Ministers also agreed to extend a deadline for Spain to cut its public deficit to the EU 3.0 percent limit by one year to 2014 because of the difficult economic conditions.

In China, data showed the trade surplus rose to 42.9 percent year-on-year in June as demand from emerging markets offset stagnation in the eurozone and Japan, according to government figures.

Exports for June were 180.21 billion dollars, up 11.3 percent year-on-year, while imports rose 6.3 percent to reach 148.48 billion dollars, the General Administration of Customs said.

This brought the surplus for June to 31.73 billion dollars, the administration said in a statement.

Asian markets tracked declines in the US and Europe.

American stocks fell ahead of the earnings season, with The Dow Jones Industrial Average closing down 0.28 percent, The S&P 500 losing 0.16 percent to 1,352.46, while the tech-rich Nasdaq slid 0.19 percent.

London slipped by 0.62 percent, Frankfurt was off 0.35 percent, and Paris edged 0.38 percent lower.

On currency markets, the euro was changing hands at $1.2293 in Tokyo morning trade against $1.2312 in New York late Monday.

Against the Japanese currency, the euro bought 97.76 yen from 97.95 yen in US trade the previous day, while the dollar was also weaker at 79.52 yen from 79.56 yen.

On oil markets, New York's main contract, light sweet crude for delivery in August dived 77 cents to $85.22 a barrel and Brent North Sea crude for August delivery plunged $1.62 to $98.70.

Gold was worth an $1,585.44 ounce at 0300 GMT, compared with $1585.20 late Monday.