* Euro and shares subdued by uncertainty over Greece
* Markets doubt euro zone meetings will yield concrete plan
* Japan growth picks up as prices fall even faster
By Wayne Cole
SYDNEY, Feb 15 (Reuters) - The euro hovered near 9-month
lows against the U.S. dollar on Monday while share markets were
subdued as investors feared coming meetings of euro zone
policymakers would produce no quick or concrete proposals for
aiding Greece.
Investors also offered only a muted cheer for news Japan's
economy grew at a surprisingly brisk 4.6 percent annualised
pace last quarter. However, inflation-adjusted growth was only
so high because economy-wide prices fell even faster than
expected, down 3.0 percent compared to the fourth quarter of
2008.
China sent tremors through world financial markets last
week by lifting reserve requirements at banks for the second
time this year. The surprise move stoked concerns it could slow
growth there, though most analysts argue the worries are
overdone.
"While monetary tightening has begun in China, we continue
to view this as a positive, pre-emptive effort to avoid a more
pronounced boom-bust cycle that would otherwise occur further
down the line," wrote Larry Kantor, head of research at
Barclays Capital, in a note.
Still, combined with uncertainty over Greece, and fresh
reports of trouble at Dubai World [], it was
enough to keep investors wary of riskier positions in equities,
commodities and currencies such as the euro and sterling.
The benchmark Nikkei <> lost early gains to tick 0.1
percent lower, while the broader Topix <> eased 0.4
percent. The Australian ASX 200 <> was likewise off 0.2
percent.
Trade was very thin with markets on Lunar New Year holiday
in China, Hong Kong, Singapore, Taiwan and South Korea. The
United States is also off for President's Day.
GREEK WORRIES
Worries over Greece's ability to fund its debt have
hammered the euro in recent weeks, dragging it to a nine-month
trough of $1.3533 <EUR=> last Friday. Early on Monday, the
single currency was stuck at $1.3612, and still in danger of
testing a major chart bulwark at $1.3483.
Figures from the Commodity Futures Trading Commission
showed speculators had amassed record short positions in the
euro, essentially betting it had further to fall, while piling
up huge long positions in the U.S. dollar. []
The euro's woes have been a boon to the dollar, which hit a
seven-month high against a basket of major currencies last
week. On Monday the U.S. currency was holding firm at 80.358
<.DXY> on the index and at 90.15 yen <JPY=>.
Attention was very much on the euro zone where finance
ministers are due to meet on Monday and Tuesday to discuss the
crisis of confidence in debt-laden Greece. []
On Sunday, European Central Bank President Jean-Claude
Trichet said Greece needed to take necessary extra measures to
make its recovery plan credible.
Yet various media reports say Athens wants to postpone any
decision on further measures until mid-March, when officials
from the EU, ECB and International Monetary Fund are due to
disect Greece's deficit-cutting plans.
"A pledge of solidarity and promises of a tough stance on
Greece are a certainty," said Michael Blythe, chief economist
at Commonwealth Bank in Sydney. "As will be the hope from those
making the promises that commitment alone will be sufficient to
soothe market nerves."
"Then investors can ponder what spread to charge a
sovereign with a weak balance sheet, poor public
administration, structural shortcomings and looming demographic
challenges," he added.
(Editing by Tomasz Janowski)
