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Chikako Mogi TOKYO Wed May 9, 2012 8:46pm EDT (Reuters) - Asian shares fell for a sixth straight session onThursday, with sentiment taking a further hit from mounting worriesabout the health of Spanish banks while deepening political chaosin Greece seemed to put it at risk of insolvency and a euro exit. MSCI's broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS eased 0.1 percent, touching its lowest in nearly fourmonths. Global shares slid for a sixth day while safe-haven U.S.and German government debt rose on Wednesday. Japan's Nikkei share averagefinance/markets/index?symbol=jp%21n225" .N225 opened down 0.4percent, after hitting its lowest in nearly three months theprevious day. .T Spain took over Bankia, the country's fourth-biggest lender, onWednesday, aiming to dispel concerns over the government's abilityto clean up a financial sector severely hit by a property marketcrash four years ago. Financial sources said Spain will demand that banks set asideanother 35 billion euros ($45 billion) against loans to the ailingconstruction sector, but uncertainty over the final tally ofbanking recapitalization hit the euro and pushed Spanish yieldsback above 6 percent on Wednesday. Greek politicians will continue last-ditch attempts to form agovernment on Thursday and avoid a new election after votersrejected a bailout deal in Sunday's poll. But prospects looked dim,with seemingly little ground for compromise as parties for andagainst a bailout were split almost down the middle in the newparliament. Greece appeared to have averted an imminent funding crisis,however, after the board of the European Financial StabilityFacility agreed to a scheduled 5.2 billion euro ($6.72 billion)payment. "Greek and European issues remain at the forefront," said analystsat Barclays Capital in a note. "However, it appears that politicaluncertainty is here to stay, and that, combined with weak economicprospects, should keep market concerns elevated. We remain EURbears," they said, adding that barring a rise in financial sectorrisks the euro's fall would be gradual. The euro stood at $1.2930, just above $1.29115 hit on Wednesday,its lowest since January 23. The euro's decline pushed spot gold tofour-month lows around $1,580 an ounce on Wednesday. Gold tradeddown 0.1 percent at $1,588 on Thursday. The risk-sensitive Australian dollar was at $1.0050, offWednesday's low of $1.0021, which was its lowest since December 20.The yen held firm against the dollar, hovering near a 2-1/2-monthhigh of 79.428 yen hit overnight. Oil fell, with U.S. crude futures down 0.4 percent at $96.41 abarrel and Brent crude down 0.5 percent at $112.64 a barrel. Risk aversion also prevailed in Asian credit markets, with thespread on the iTraxx Asia ex-Japan investment-grade index expandingby 2 basis points early on Thursday to stand at its widest in morethan three months. Some analysts caution about a further, sharp acceleration in riskaversion. "Equity vol indices already show that the market is hesitating tostay in a regime of deep stress," said Sebastien Galy, a strategistat Societe Generale. "VIX hesitates to move to the 20-30 regime of stress. The battlebetween better economic data and depressed investor sentiment isyet to reach its final conclusion. Greece only provides theheadlines, the EFSF will pay its tranche," he said. The CBOE Volatility index .VIX, a key gauge of how investorsperceive risk, rose 5.4 percent to 20.08 on Wednesday. The VIX index measures expected volatility in the Standard &Poor's 500 index .SPX over the next 30 days and its increasereflects mounting risk aversion. ($1 = 0.7733 euros). I am an expert from electric-power-transformers.com, while we provides the quality product, such as Rectifier Transformer Manufacturer , Ladle Furnace Transformer Manufacturer, Oil Immersed Power Transformer,and more.
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