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HONG KONG: Asian markets came under pressure on Friday as a successful bond auction in Spain failed to raise spirits while weak US economic data also added to the general sense of pessimism.
Tokyo fell 0.35 percent by the break, Hong Kong shed 0.39 percent, Sydney slipped 0.12 percent, Seoul tumbled 1.27 percent and Shanghai was flat.
Spain's Treasury on Thursday raised a higher-than-expected 2.541 billion euros ($3.3 billion) in its issue of two- and 10-year bonds at rates below the key six percent that raises alarm bells for investors.
The results came after Madrid on Tuesday enjoyed an above-target auction of 12- and 18-month bonds.
With the eurozone debt crisis returning to the fore the focus is now on Spain -- with a gaping public deficit and unemployment above 20 percent -- with fears it could follow Greece, Portugal and Ireland into asking for a bailout.
The auction came as world finance leaders began a two-day meeting in Washington that will discuss bolstering an International Monetary Fund (IMF) firewall against future crises like that of Greece last year.
Earlier this week, Japan said it would pledge $60 billion after IMF chief Christine Lagarde called for a global effort to raise $500 billion.
Sweden, Norway, Denmark and Poland are among the nations that have since pledged billions of dollars.
Lagarde said in Washington that Spain did not need an IMF rescue as long as Europe keeps working to help the government with its reforms.
“There is no such need at the moment as I understand,” she told Bloomberg Television.
Her comments provided support to the euro, which held on to gains made against the dollar and yen after the latest Spanish bond sale.
In morning Asian trade, the single currency bought $1.3141 and 107.23 yen, compared with $1.3134 and 107.19 yen in New York late Thursday.
The dollar was changing hands at 81.58 yen, slightly down from 81.60 yen.
In the United States, new claims for unemployment benefits only inched lower last week, data showed, as several weeks of confidence-building falls appear to be coming to an end.
The Labor Department also said that the number of people claiming in the previous week was higher than previously reported.
Also, mid-Atlantic manufacturers saw business conditions this month decline more than anticipated, while sales of previously owned homes fell in March for the second consecutive month and missed expectations.
“While stronger-than-expected US data has been the common theme in recent times, a general lack of continuity continues to plague the market,” said Chris Gore, Melbourne-based currency analyst at GO Markets, in a note.
And he added that there was “little in the way of solid evidence to suggest the economy is on a sustained upside trajectory”, according to Dow Jones Newswires.
The Dow shed 0.53 percent, the broader S&P 500 was down 0.59 percent and the Nasdaq fell 0.79 percent.
On oil markets, New York's main contract, West Texas Intermediate crude for delivery in May, was up 25 cents to $102.52 per barrel while Brent North Sea crude for June shed eight cents to $117.92.
Gold was at $1,644.10 an ounce at 0315 GMT, compared with $1,640.00 late Thursday.
