By Chikako Mogi
TOKYO (Reuters) – The euro retreated from a three-week high on Tuesday and Asian shares gave up most of their early gains as crucial negotiations on Greek debt restructuring suffered another major setback, raising the specter of default.
Financial spreadbetters expected Britain’s FTSE 100 (FTSE:^FTSE – News),
Germany’s DAX (XETRA:^GDAXI – News) and France’s CAC-40 (Paris:^FCHI – News) to open down around 0.4-0.6 percent.
The MSCI’s broadest index of Asia-Pacific shares outside Japan rose as much as 0.2 percent to a 10-week high before easing to stand barely changed, as Australian shares pared earlier gains to end flat on concerns about Europe.
The pan-Asia index, on the other hand, drew some support from Indian shares (BSE:^BSESN – News), which extended gains after the Reserve Bank of India cut the cash reserve ratio for banks, underscoring a policy shift from fighting inflation to reviving growth.
Japan’s Nikkei average (Osaka:^N225 – News) ended up 0.2 percent at its highest closing level in nearly three months on hopes that a Greek debt deal may still be salvaged. (:.T)
Activity was thin, however, with many Asian markets still closed for the Lunar New Year holiday.
U.S. stock futures slipped 0.3 percent as investors awaited earnings reports from bellwethers such
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