* Euro retreats, Greece may seek IMF help in weeks-Dow
Jones
* Growth expectations to support Asian stocks in near term
* Japanese govt bond futures at 2-mth low on Reuters survey
* U.S. consumer inflation in focus later in the day
By Kevin Plumberg
HONG KONG, March 18 (Reuters) - The euro dropped on
Thursday on a report that Greece is not hopeful of aid from the
European Union, while Asian stocks hovered near a two-month
high, supported by solid growth expectations for the region.
Major European stock markets <> were seen slipping as
much as 0.3 percent after a steep two-day rally, with lower oil
and metal prices weighing on shares of resources firms,
according to financial bookmakers.
But U.S. stock futures eased 0.2 percent <SPc2>, indicating
a weaker open on Wall Street after stocks finished at 17-month
highs overnight. []
After the U.S. February Producer Price Index reflected
benign wholesale price pressures, investors will be looking to
U.S. consumer inflation and jobless claims data later on
Thursday for further clues on the health of the world's largest
economy and the likely timing of interest rate hikes.
Fears about Greece's ability to raise desperately needed
funding were stoked after Dow Jones, citing an unnamed senior
Greek official, reported the indebted country may be forced to
ask the International Monetary Fund for help as early as April
2-4. []
The Greek official said the government was not hopeful of
help from EU partners at a summit next week.
"The Greek issue continues to hover over euro/dollar like a
dark cloud," Boris Schlossberg, director of currency research
at GFT in New York, said in a note.
"If the EU is unable to find a pan-European solution to
resolve the crisis, the currency could weaken further on fears
that many of the other southern European economies may be next,
as the risk of fragmentation increases exponentially."
The euro <EUR=> was down 0.5 percent at $1.3672 and off 0.6
percent against the yen at 123.30 yen <EURJPY=>. Since 2010
began, the euro has lost 6 cents in value.
The dollar slid 0.2 percent against the yen to 90.15 yen
<JPY=>.
Worries about Greece kept shares in Asia subdued despite
the strong gains on Wall Street overnight.
Japan's Nikkei share average <> fell 1 percent,
weighed down in part by profit taking in technology-related
stocks, which had raced up in recent sessions.
Despite grinding deflation, Japanese companies have become
far less gloomy about economic conditions than three months
ago, a Reuters poll showed, implying a large improvement in the
Bank of Japan's own tankan survey next month. []
MSCI's index of Asia Pacific ex-Japan stocks
<.MIAPJ0000PUS> dripped 0.2 percent. The index has risen more
than 8 percent since February, when easing fears about Greece's
fiscal crisis encouraged more investor risk taking, compared
with 5.2 percent on the all-country world index
<.MIWD00000PUS>.
A sustained global economic recovery and portfolio
rebalancing has helped developed stock markets rise 1.1 percent
versus a 1.1 percent fall in emerging markets so far this year.
But a Reuters poll showed developing markets, especially Russia
and China, will outperform advanced markets by year end.
[]
Asian markets have rebounded in recent weeks, drawn by the
region's solid growth prospects.
"The near-term outlook for Asian equities is good because
global growth is accelerating and we still have two quarters of
good year-on-year growth in front of us," said Dariusz
Kowalczyk, chief investment strategist with SJS Markets in Hong
Kong.
U.S. 10-year Treasury note futures <TYc1> were up slightly
following the report on Greece. In the cash market, the 10-year
yield was at 3.62 percent <US10YT=RR> compared with 3.64
percent late on Wednesday in New York.
The 10-year Japanese government bond future <2JGBv1> fell
to a 4-month low after the upbeat Reuters poll pointed to a
gradual recovery.
U.S. oil futures <CLc1> slid 0.7 percent to $82.32 a barrel
as the dollar firmed, but stayed in sight of the 2010 high of
$83.95.
(Editing by Kim Coghill)
