Ongoing European issues still a dampener to Asian stocks

<p>Asian shares are expected to open flat given offshore leads. There won’t be too much excitement in today’s session despite the U.S. market paring back […]</p>

Asian shares are expected to open flat given offshore leads. There won’t be too much excitement in today’s session despite the U.S. market paring back earlier losses. 

French air planes might have brought upon an end to fighting in Libya as former leader Gaddafi is reported to have died. NATO’s military leadership and oversight in Libya has seen little disruption to oil supplies so it isn’t surprising to see a small reaction in oil prices following the announcement. 

The market is more interested at this stage in how the French and Germans use their political and economic positions in achieving a solution to Europe’s debt woes. Clearly, the ongoing saga is having an effect on global growth. 

We note BHP Billiton’s comments yesterday as it warned of commodity price falls possible over the short term. BHP says its order book remains full but customers are taking a cautious approach to inventory levels. 

That will do little to help the S&P/ASX200 index in Australia, of which BHP is the largest index constituent, just under 12% of total market capitalisation.  

Elsewhere in Asia, Japan continues to struggle with its currency position. Media reports suggest Japan is preparing to unveil plans worth around 4 trillion yen to help its exporters cope with the currency position. This might be a cheaper form of currency intervention since the last round did little to stop the yen for appreciating against its major trading peers. 


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