Sept. 15 - Asian markets pare gains Thursday, after an early rally prompted by apparent progress on tackling Europe's debt problems. Arnold Gay reports.
Asian stock markets gave up some gains Thursday (September 15), after an early rally prompted by apparent progress on tackling Europe's debt problems. News that Greece would stay in the euro zone, and comments from European Commission President Jose Manuel Barosso on a eurobond, lifted sentiment, But gains were limited by investor wariness over potential obstacles policymakers still face. Stocks outside of Japan rose as much as 1.8 percent, but gave up much of those gains by early afternoon. Early optimism and higher chip prices saw South Korean stocks rising over 3 percent, led by Hynix Semiconductor and Samsung Electronics. The Kospi ended Thursday trade with a 1.4 percent gain. Euro zone relief also faded in Hong Kong and Shanghai, with stocks flat in afternoon trade. But Japan's largest memory chipmaker, Elpida, rose nearly 10 percent, after saying it may move some production to Taiwan to counter the strong yen. Japan's Nikkei 225 outperformed, adding 1.8 percent as technology stocks moved the benchmark away from a 6-month low hit yesterday. Equity markets have been hammered since late July, on twin fears of renewed recession in the U.S. and worries Europe's sovereign debt woes may trigger a wider crisis in the global financial system. Arnold Gay, Reuters