Asia markets seen lower on euro zone fears

 

ASIAN stocks are likely to fall on Tuesday, as heightened concerns about euro zone debt still dominated equity markets, sending financial shares lower.

Wall Street turned negative after a positive start, with the major indices falling as much as 1 per cent, with bank shares the big losers on fears of wider fallout from the euro zone’s debt issues.

British and European shares both snapped losing streaks to finish higher, as strength in miners and defensive stocks overcame weakness from banks.

The U.S. dollar drifted lower on the slight recovery in overseas equities. The euro steadied but was unable to advance as fears Portugal and Spain could soon face the same fiscal problems as Greece dominated markets. The yen was slightly stronger against the greenback.

Japan’s Nikkei average is seen falling, with Nikkei futures trading in Chicago 65 points lower than the Osaka close.

Australian shares are also seen softer, with share index futures at 4,442, a 79-point discount to the underlying index’s close on Monday. - Reuters