* Euro hits 1 year low vs dollar, Greek worries weigh
* KOSPI touches 22-month high, before slipping
* Most markets drift, but earnings expectations support
* Dollar index reaches one-month high
(Repeats to more subscribers)
By Elaine Lies
TOKYO, April 23 (Reuters) - Stop-loss selling hammered the
euro to a one-year low on Friday on growing speculation that
debt-laden Greece could default on its sovereign debt.
Asia stocks mostly drifted lower, but were supported by
strong earnings predictions as most companies globally have met
or exceeded expectations so far in the first-quarter earnings
season.
Korean stocks briefly touched a 22-month high after
forecast-beating results from several major firms, including
Hyundai Motor, before slipping lower.
The euro <EUR=> dropped as far as $1.3201 on trading
platform EBS, its lowest level since April 30 last year, after
the European Union said Greece's budget deficit was worse than
feared at 13.6 percent of GDP and Moody's Investors Service cut
its rating of Greek government debt. [] []
"The euro is getting clobbered as worries about Greece are
intensifying and fears of a contagion are rising," said David
Scutt, a forex trader at Arab Bank Australia in Sydney.
"There were quite a few stops taken on its way down this
morning and we have to see if $1.32 gives way later in the day
when flows get better."
Moody's downgraded Greece's sovereign debt rating by a
notch to A3 and placed the rating on review for a further
possible downgrade, citing the risk that Greece may end up
paying a lot more for its borrowing than initially thought.
A Reuters poll of around 50 economists gave a median 80
percent chance that Greece would turn to its euro zone partners
in the next two months and activate its aid package.
They gave a roughly one-in-four chance that Greece would
default on its debt in the next five years. []
By mid-morning Asia time, the euro had rebounded to
$1.3220. It fell 0.5 percent against the yen to 123.54 yen
<EURJPY=R>.
The euro's broad weakness helped the dollar index <.DXY>, a
basket of six major currencies, rise 0.5 percent to 88.991. It
rose earlier to its highest level since March 25.
The dollar also got a general boost from a fall in U.S.
jobless claims and rise in home sales, bolstering the view that
the economy is improving. []
It was flat at 93.46 yen <JPY=>.
ROBUST EARNINGS BOOST SHARES
Starmine data shows 67 percent of the companies globally
that have reported first-quarter earnings so far, have met or
exceeded expectations. The vast majority of firms covered are
yet to report their earnings.
The MSCI index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> slipping 0.1 percent. Lacklustre commodity
prices hit raw materials stocks <.MIAPJMT00PUS>, which fell 0.4
percent.
Korean shares <> rose as high as 1,748.46 just after
the open, narrowly beating a previous 22-month high set earlier
this week. They later fell back by 0.1 percent.
The index was lifted by LG Display <034220.KS> and Hyundai
Motor <005380.KS>, which both posted forecast-beating quarterly
results late on Thursday. [] []
Japan's benchmark Nikkei <> lost 0.3 percent to
10,914.83 in caution that Greece's troubles could curb risk
appetite.
Some shares gained after a range of companies lifted their
forecasts for corporate earnings, which move into higher gear
next week.
Furukawa Electric Co Ltd <5801.T> rose 1.7 percent to 473
yen after hiking its operating profit estimate to 19.5 billion
yen ($2.1 million) from 15 billion yen, citing growth across a
broad range of products including semiconductors and
electronics.
Gold prices edged down, extending a 0.4 percent fall the
previous day. Spot gold <XAU=> was quoted at $1,139.65 at 0219
GMT.
U.S. crude futures were steady at a little under $84 a
barrel <CLc1>.
(Additional reporting by Anirban Nag in Sydney and Aiko
Hayashi in Tokyo; Editing by Neil Fullick)
