* Euro and shares subdued by uncertainty over Greece
* Markets doubt euro zone meetings will yield concrete plan
* China policy tightening stirs worry about global recovery
* Japan growth picks up as prices fall even faster
(Recasts, updates prices)
By Wayne Cole
SYDNEY, Feb 15 (Reuters) - The euro huddled near 9-month
lows against the U.S. dollar on Monday and share markets fell
as investors feared coming meetings of euro zone policymakers
would yield nothing quick or concrete on Greece.
Euro zone finance ministers meet on Monday and Tuesday to
discuss the crisis of confidence in debt-laden Greece and are
expected to insist on more painful medicine. []
European shares <> were expected to open slightly
higher, bucking weakness in Asian stocks, as investors awaited
the finance ministers' meeting.
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 will resist any new
measures until mid-March, when officials from the EU, ECB and
International Monetary Fund are due to dissect Greece's
deficit-cutting plans.
The European Cental bank and European Commission agreed
last week to work together to monitor Greece but EU leaders
failed to come up with a concrete rescue package. Euro zone
officials appear adamant that the hard work must be done
primarily by Greece at this stage, rather than by the EU.
"A pledge of solidarity and promises of a tough stance on
Greece are a certainty. As will be the hope from those making
the promises that commitment alone will be sufficient to soothe
market nerves," said Michael Blythe, chief economist at
Commonwealth Bank in Sydney.
"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.
Worries over Greece's ability to fund its debt and weakness
elsewhere in the euro zone have hammered the euro in recent
weeks, dragging it to a nine-month trough of $1.3533 <EUR=>
last Friday.
On Monday, the single currency was pinned at $1.3600 and in
danger of testing a major chart bulwark down around $1.3483.
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 80.416
<.DXY> on the index and at 90.15 yen <JPY=>.
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. []
JAPAN GROWS AS PRICES FALL
Trade was very thin on Monday 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.
Investors offered only a muted cheer for news that 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.
The benchmark Nikkei <> lost early gains to end 0.8
percent lower, while the broader Topix <> fell 1 percent.
The Australian ASX 200 <> fell 0.36 percent.
Markets were still reverbating from China's decision late
on Friday to lift reserve requirements at banks for the second
time this year. The surprise move stoked concerns it could slow
robust growth there, which has largely led the global recovery,
though most analysts argue such 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," Larry Kantor, head of research at Barclays
Capital, wrote in a note.
Crude oil futures <CLc1> were steady above $74 after
Japanese growth data eased concerns that energy demand would
taper off as China tightens policy.
Gold <XAU=> edged up 0.2 percent to above $1,095 per ounce,
with traders watching moves in currency markets.
On Thursday, spot gold rose to a session high of $1,097.75
an ounce, the highest since Feb. 4, as investors turned to the
metal as a hedge against currency volatility after news that
European governments had agreed in principle to support
Greece.
(Editing by Kim Coghill)
