Euro, crude ease on Portugal debt worries

parliament’s rejection of his minority government’s austerity programme, renewing worries about the scale of the euro zone’s sovereign debt crisis.
Asian stocks outside Japan rose as higher commodities prices lifted materials shares, but Tokyo shares weakened as concerns over radiation leaks from an earthquake-damaged nuclear power plant continued to sap investor confidence.
European shares were expected to open little changed as uncertainty over Portugal, Japan and the Middle East gave investors little incentive to stake out fresh positions, while US S&P 500 futures barely budged, pointing to a cautious start on Wall Street as well.
The resignation of Prime Minister Jose Socrates was seen as increasing the likelihood that Portugal will join Greece and Ireland in requiring a bailout from the European Union.
An official euro zone source estimated in January that if Portugal asked for international aid, it might need between 60 billion to 80 billion euros (up to US$113 billion).
“Whether there will be a bailout
for Portugal or not has some consequences on how things will pan out in Europe.
“Risks in the euro-zone seem to be increasing,” said Serene Lim, a Singapore-based oil analyst at ANZ Bank.
Tokyo’s Nikkei fell 0,2 percent. It remains 8 percent below its close on March 11, when an earthquake and tsunami hit northeastern Japan.
“We are unlikely to see further gains in the near future, unless there is an end to the nuclear crisis in sight,” said Takashi Hiroki, chief strategist at Monex Securities.
Disruptions in the global supply chain after the Japan quake continue to be felt around the world, most notably for auto makers and electronics firms. – Reuters.