HONG KONG - Asian markets were mixed on Monday after last week's huge losses, with traders taking some heart from a statement by Group of Eight leaders saying they wanted Greece to remain in the eurozone.
The euro also bounced back from four-month lows against the dollar after the weekend announcement, but comments from Chinese Premier Wen Jiabao that hinted at more monetary easing failed to lift sentiment in Hong Kong and Shanghai.
Tokyo gained 0.26 percent by the break, Sydney rose 0.19 percent and Seoul was 0.80 percent higher.
But Hong Kong slipped 0.60 percent and Shanghai shed 0.20 percent.
The G8 leaders meeting at the US president's retreat at Camp David on Saturday said they wanted Athens to stay part of the currency union and urged it stick to terms of a bailout deal.
"We agree on the importance of a strong and cohesive eurozone for global stability and recovery," a joint communique stated. "We affirm our interest in Greece remaining in the eurozone while respecting its commitments."
However, the talks highlighted the differences on whether to pursue more belt-tightening or pro-growth measures, meaning they could not come up with an agreement on how to deal with the growing crisis.
Global markets have been sent into a spin since May 6 polls in Greece and France that saw voters overwhelmingly back anti-austerity parties.
Another election has been called for next month in Greece after several attempts to form a coalition government failed.
German Finance Minister Wolfgang Schaeuble said the June 17 poll will see Greece not only electing lawmakers but voting on whether their country stays in the eurozone.
"Europe is ready to help the Greek people... But Europeans can't do the work that Greece must do, that depends on the Greeks," he told the Sunday edition of Greek daily Kathimerini.
On currency markets the euro strengthened to $1.2810 in Tokyo morning trade, from $1.2773 in New York late Friday.
The unit on Friday hit a four-month-low $1.2642 on deepening worries about the eurozone.
On Monday, the euro also rose to 101.40 yen from 100.94 yen, while the dollar advanced to 79.14 yen from 78.95 yen.
In China on Sunday Wen vowed proactive policies to make growth a bigger priority, following a string of weak data pointing to a slowdown in the world's second largest economy.
"We should continue to implement a proactive fiscal policy and a prudent monetary policy, while giving more priority to maintaining growth," he said, raising hopes the leadership will add to last week's cut in the amount of cash banks must hold in reserve.
Oil prices advanced. New York's main contract, West Texas Intermediate crude for delivery in June was up 28 cents to $91.76 per barrel while Brent North Sea crude for July gained 26 cents to $107.40.
Gold was at $1,596.50 an ounce at 0300 GMT, compared with $1,589.90 late Friday.-Interaksyon (May 21, 2012)
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