BANGKOK — Asian stock markets were mixed Monday after a weekend meeting of the leaders of France and Germany provided a promise of action on Europe's debt crisis but few details.
Oil prices hovered above $83 per barrel while the dollar slipped against the euro and the yen.
On Sunday, German Chancellor Angela Merkel and French President Nicolas Sarkozy said a comprehensive response to the debt crisis would be finalized by the end of the month, including a detailed plan to ensure European banks have adequate capital. Few other details were provided.
The market reaction in Asia was lukewarm. Hong Kong’s Hang Seng fell 0.7 percent to 17,589.15. But South Korea’s Kospi rose 0.7 percent to 1,771.29 and Australia’s S&P/ASX 200 gained 0.5 percent to 4,184.40.
Benchmarks in mainland China, New Zealand and the Philippines were lower. Singapore’s FTSE Straits Times Index rose. Markets in Japan were closed for a national holiday.
"Discussions over the weekend between German Chancellor Merkel and French President Sarkozy delivered little in substance," Credit Agricole CIB said in a research note.
"In the meantime, markets may give eurozone officials the benefit of the doubt, but patience will run thin if no progress is made on these fronts," it said.
Analysts have urged European officials to identify all the banks in the region that need to replenish their capital reserves, then decide whether to compel them to raise that money from markets and to provide government financing to the ones that can’t.
Many experts say the capital cushions of many European banks must be strengthened in order to withstand a possible government bond default by Greece.
Chinese real estate shares fell after a weekend report by a research firm that housing prices in 100 cities declined in September for the first time this year following repeated interest rate hikes and other government efforts to cool an overheated economy.
Hong Kong-listed China Overseas Land & Investment Ltd. lost 5.1 percent. China Resources Land Ltd. fell 5.2 percent. China Vanke Co. dropped 3.3 percent.
Meanwhile, energy shares rose on the back of stabilizing oil and gold prices. Australia’s Woodside Petroleum gained 1.3 percent and Energy Resources of Australia gained 4.3 percent.
The euro rose to $1.3449 from $1.3388 in late trading Friday in New York. The dollar weakened to 76.74 yen from 76.82 yen.
In energy trading, benchmark crude for November delivery was up 67 cents to $83.65 per barrel in electronic trading on the New York Mercantile Exchange. The contract climbed 39 cents to end Friday at $82.98 a barrel in New York.
Brent crude was up 16 cents at $106.04 a barrel on the ICE Futures Exchange in London.
