Asian Markeetes on Forex

Asian markets fell Monday as Spain's debt problems increase confidence and downbeat data due to the weak growth of China last week, and the optimism faded over the US economy. The euro fell further as investors became more risk-averse, while the yuan sank against the dollar in the first trading day since Beijing broad trading for China's currency. Tokyo fell 1.45 percent by the break, Hong Kong fell 0.58 percent, Sydney shed 0.46 percent, Seoul fell 0.93 percent and Shanghai rose 0.24 percent. Regional markets followed losses on Wall Street and in Europe Friday after data showed Spanish banks borrowed a record € 227600000000 In an emergency cheap loans from the European Central Bank in March. The figures show the weak confidence in the financial sector of the country, the banks turned to the ECB because they are struggling to borrow money in the interbank market. Spain and Italy have come under scrutiny in recent weeks amid fears they could be the next economy to succumb to the same fate as Greece, Ireland and Portugal and need financial assistance. The yield on Spanish 10-year bond rose to 5.956 percent on Friday from 5.802 percent on Thursday while the yield on Italian 10-year bond rose to 5.513 percent from 5.394 percent. On Wall Street, the Dow plunged percentage 1.05, S & P 500 shed 1.25 percent and the tech-rich Nasdaq fell 1.45 percent. In Europe, the London FTSE 100 index shed accounted for 1.03 percent, Frankfurt's DAX declined by 2.36 and Paris's CAC 40 fell 2.47 percent index FTSE Mib in Milan rose percent 3.43 and Madrid shed 3.58 percent. Optimism over the US economy - which is the result of several months of job growth strong - has faded in recent weeks and fell a larger than expected in the university's index of consumer confidence. Michigan will increase anxiety Friday. Figures also showed the number of people claiming unemployment benefit rose for a second week. In Shanghai the yuan fell against the US dollar in line with the dollar's global strength caused by dealers seeking safer assets. At 0250 GMT, the dollar bought 6.3145 yuan, up from 6.3030 dollars late Friday hit a high of 6.3250 earlier today. The fall came after the People's Bank of China said it would allow the yuan to move a percentage of a rate equal to the one of the state increased from 0.5 per cent. Saturday's announcement is an important step towards the implementation of market-oriented reforms and comes after leaders have faced pressure from Chinese suppliers to keep the unit move more freely. Beijing has been accused of keeping the currency artificially low to boost exports is important. "There appears to be increasing evidence that reform leader now in the ascendancy" in China, said Sydney-based Ric Spooner, chief market analyst at CMC Markets in a note. "The move to allow greater volatility in the currency following the recent relaxation of restrictions on capital flows fits this scenario," he said, according to Dow Jones Newswires. In Tokyo currency trading, the euro bought $ 1.3023 and ¥ 105.35, compared with $ 1.3078 and ¥ 105.83 in New York late Friday. The single currency is well down from $ 1.3167 and ¥ 106.70 in Asia on Friday. The dollar was at 80.90 ¥ with ¥ 80.91 in New York. On oil markets New contracts York oil price, West Texas Intermediate for delivery in May fell 61 cents to $ 102.22 per barrel while Brent North Sea for June shed $ 1.13 $ 120.08 in. Morning Trade Gold was at $ 1,650.60 an ounce at 0335 GMT compared with $ 1,674.15 late Friday.