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Asia stocks mixed amid Europe woes; Hang Seng down 0.66%

Published 05/12/2010, 03:24 AM
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Investing.com – Asian stocks were mixed on Wednesday amid fears that cash-strapped euro zone nations would still be unable to slash their budget deficits, despite a massive EU-IMF bailout.

Hong Kong's Hang Seng Index was down 0.66%; South Korea's Kospi Composite shed 0.43%; and Japan’s Nikkei 225 Index slipped 0.16%.

But the Shanghai Composite Index gained 0.31%, and Australia's S&P/ASX 200 Index rose 0.55% after the government's budget offered a more upbeat assessment of the Australian economy. The ruling Labor party predicted stronger growth driven by resources demand from China and India, lower unemployment, subdued inflation and a small surplus by 2012-13.

Meanwhile, Central Bank President Jean-Claude Trichet repeated his call for Greece, whose debts precipitated the crisis that has engulfed the euro zone, to carry out the harsh austerity measures to which it agreed as part of the rescue plan.

"Greece must rigorously apply the recovery plan it has decided," Reuters quoted Trichet as telling French radio station Europe 1 on Wednesday. "This is very important. Everything begins with the confidence of households and investors in the mid term recovery plan. Everyone has to meet their responsibilities."

The outlook for U.S. equity markets was dim: Dow Jones Industrial Average futures indicated a fall of 0.45%, S&P 500 futures pointed to a decline of 0.47% and Nasdaq 100 futures indicated a drop of 0.53%.

Later in the day, the U.S. Bureau of Economic Analysis was due to publish a key report on the U.S. trade balance, the difference in value between imported and exported goods.

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