GLOBAL MARKETS-Japanese stocks fall, euro steadies

Published 03/28/2011, 08:59 PM
Updated 03/28/2011, 09:04 PM
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* Nikkei falls 1.2 pct on nuclear concerns

* Euro stabilises after ECB's Trichet remarks

* Gold finds footing on steady euro

* Oil falls for 4th straight session

HONG KONG, March 29 (Reuters) - Worries over the quake-hit nuclear plant and its impact on corporate earnings knocked Japanese shares lower on Tuesday, while the euro steadied after comments from the region's central bank chief bolstered the view of an interest rate hike.

Plutonium found in soil at the Fukushima nuclear plant added to anxiety over Japan's protracted fight to contain the world's worst atomic crisis in 25 years.[ID:nL3E7ES2ND]

A fallout from the devastating earthquake and tsunami was that some Japanese companies, mainly manufacturers, will likely be late in announcing full-year earnings for this business year, which in turn would delay the payment of dividends. See [ID:nTKZ006904]

Japan's Nikkei was down 1.23 percent, while MSCI's index of Asian shares outside Japan fared better, dipping 0.051 percent.

In currency markets, the euro stabilised after comments from the European Central Bank chief Jean-Claude Trichet on inflation reinforced the view of an interest rate increase. The move would boost the value of the single currency and returns on euro-denominated investments.

Still the euro remained under pressure on the region's public fiscal problems and uncertainties stemming from Sunday's loss of a key state election by Germany's ruling party.

The euro last traded at $1.4073 , compared with $1.4078 late in New York on Monday. Early in the session, it was as high as $1.4087.

A steady euro fostered support for gold after losing ground on Monday. Spot gold last traded at $1,419.55 an ounce from $1,419.50 late in New York on Monday. It is below the record high of $1447.40 set on March 24.

Meanwhile, oil prices fell for a fourth straight day as the market has struggled to probe higher levels on low volume after rising on a weak dollar and the political turmoil in Libya and the Middle East.

Brent crude fell 23 cents to $114.77, while U.S. crude slipped 35 cents to $103.62 a barrel.

(Writing by Richard Leong in HONG KONG; Editing by Sanjeev Miglani; Reporting by Ian Chua in SYDNEY; Antoni Slodkowski in TOKYO)

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