* Nikkei steady, Seoul pulled higher by record S&P; close
* Euro steady on relief over lack of panic in Cyprus
* Most Asian markets closed for Easter holidays
By Chikako Mogi
TOKYO, March 29 (Reuters) – Asian shares edged higher and
the euro steadied on Friday after banks in Cyprus reopened to
relative calm — a development that helped the S&P; 500 stock
index notch up a record closing high overnight.
But overall trade was subdued with many Asian markets,
including Australia, Singapore and Hong Kong closed on Friday
for Easter holidays.
The MSCI’s broadest index of Asia-Pacific shares outside
Japan was up 0.1 percent. South Korean shares
added 0.8 percent on the back of the S&P; rally, while
Shanghai shares were up 0.3 percent in early trade.
The Nikkei stock average was up 0.2 percent.
“Investors’ risk-off stance has receded,” said Yoshiyuki
Kondo, an analyst at Daiwa Securities, but he added that
investors in Tokyo may not build large positions before the
weekend and on the last trading day of Japan’s fiscal year.
The euro was at $1.2821, hovering near a four-month
low of $1.2750 touched on Wednesday. The euro’s relative
resilience on Friday weighed on the dollar against a basket of
key currencies, sending the dollar index down 0.4 percent
to 82.928 and further away from Wednesday’s 7-1/2 month peak of
83.302.
“There is little incentive to move markets, barring any
surprise news, and I expect currencies to trade in ranges for
the rest of the day,” said Junya Tanase, chief FX strategist at
JPMorgan Chase Bank in Tokyo.
The fairly orderly reopening for banks in Cyprus after the
island nation received a controversial 10 billion euro bailout
that taxed large depositors, reduced safe-haven demand for U.S.
Treasuries and gold.
Data showing a steep decline in U.S. Midwest manufacturing
revived some concerns the U.S. economy might slow in spring and
summer as it did in the previous three years.
But expectations for continued global growth were bolstered
after robust retail and labour market figures out of Germany and
a higher revision for U.S. fourth quarter gross domestic product
growth.
Uncertainty remained over the euro zone, with signs of
economic deterioration mounting, after an unexpected rise in
German unemployment in March and the lack of a government in
Italy following inconclusive elections.
