Apple lifts Asian tech sector

Asian shares rose on hopes that an 11th-hour deal in US debt talks would avert a rapidly approaching default while blowout results from Apple lifted the tech sector which is likely to extend gains into European trading as well.

However, dampened expectations of a comprehensive solution to Greece's debt crisis at a euro zone leaders' summit tomorrow ate into the euro's gains.

Financial bookmakers expect Europe's main stock indexes to rise today, adding to the previous session's tentative rebound, helped by earnings hopes and signs of progress on a US budget-reduction deal.

Financial spreadbetters expect Britain's FTSE 100 to open around 16 points higher, or 0.3 per cent, Germany's DAX to open 25 points higher, or 0.4 per cent, and France's CAC 40 to open 8 points higher, or 0.2 per cent.

The euro which had risen earlier as Italian and Spanish yields fell, gave up gains on increasing doubts that tomorrow's euro zone summit will offer a long-term solution to the debt crisis.

With just two weeks left until the US government runs out of money to pay bills, president Barack Obama seized on a plan by a bipartisan group of senators that could revive stalled US debt talks and the prospect of a long-term deficit reduction deal to avert a default.

Benchmarks in Japan, South Korea and Taiwan rose as makers of tablet and smart phone components posted strong gains. Beaten-down smartphone maker HTC jumped 7 per cent.

"Thanks to Apple, its suppliers would be able to continue to grow substantially in Q3, even into next year," said Oscar Chung, who manages about $448 million for Capital Securities Investment Trust in Taiwan.

The euro edged lower as German Chancellor Angela Merkel doused expectations for tomorrow's emergency euro zone summit, saying expectations for a single, final solution to the Greek crisis was unrealistic.

"Further steps will be necessary and not just one spectacular event which solves everything," Dr Merkel told reporters yesterday.

The euro was trading down 0.1 per cent around $1.4140 against the dollar after a 0.3 per cent gain, having pulled away from a four-month low near $1.3838 hit last week.

"There hasn't been any progress and the euro just seems to be moving this way and that within a range," said Tsutomu Soma, senior manager for Okasan Securities' foreign securities department in Tokyo.

"I don't think anyone can buy the euro wholeheartedly," he said, adding that the euro may struggle to rise above resistance in the $1.4250 to $1.4300 area in the near term.

Gold edged up again on light Asia buying after it snapped an unprecedented 11-day winning streak, shedding over 1 per cent overnight as safe-haven interest ebbed. Spot gold which hit a record $1,609.51 an ounce yesterday was trading around $1,588.6 an ounce.

NYMEX crude oil rose above $98 a barrel supported by hopes of a US debt deal, a weakening dollar against the euro and tightening crude stocks in the world's largest oil consumer.

Reuters