The euro fell and oil prices eased today after Portugal's prime minister resigned following parliament's rejection of his minority government's austerity programme.
Asian stocks outside Japan rose as higher commodities prices lifted materials shares, but Tokyo shares weakened as concerns over radiation leaks from an earthquake-damaged nuclear power plant continued to sap investor confidence.
European shares were expected to open little changed as uncertainty over Portugal, Japan and the Middle East gave investors little incentive to stake out fresh positions.
The resignation of Portugal’s prime minister Jose Socrates was seen as increasing the likelihood that Portugal will join Greece and Ireland in requiring a bailout from the European Union.
An official euro zone source estimated in January that if Portugal asked for international aid, it might need between €60 billion to €80 billion.
Tokyo's Nikkei fell 0.2 per cent. It remains 8 per cent below its close on March 11th, when a 9.0 magnitude earthquake and tsunami hit northeastern Japan, leaving around 25,600 people dead or missing and cutting powers to millions of homes as well as factories, many of which are still struggling to come back online.
Disruptions in the global supply chain after the Japan quake continue to be felt around the world, most notably for auto makers and electronics firms. Toyota Motor said overnight it will slow some North American production because of parts shortages.
The euro bought around $1.4085, having dropped as far as $1.4075 on electronic trading platform EBS in late New York trade yesterday.
Oil eased as the euro zone concerns rekindled worries about economic growth - and hence energy demand - in the bloc, although traders said continued political unrest in parts of the Middle East would prevent it from falling far.
US crude fell 0.3 per cent to $105.48 a barrel and Brent crude was off 0.2 per cent at $115.35.
Reuters