The euro dipped on Tuesday after bouncing from four-year lows, weighed down by persistent worries about the euro area's fiscal health that also kept investors in Asia on edge.Stocks hovered near a three-month low struck on Monday, with materials shares down a day after metals prices tumbled on fears that China's economy may be slowing.Traders said that while the euro's sharp fall made it ripe for a bounce, it would stay under pressure over the longer run due to concerns that belt tightening needed to prevent the Greek debt crisis from spreading could stunt European growth."It is still hard to see how the problems in Europe stemming from Greece will come to an end. It is hard to say what would convince everyone that it is over," said Minoru Shioiri, chief manager of FX trading at Mitsubishi UFJ Morgan Stanley Securities.Shiori noted that costs of insuring Portuguese and Greek government debt jumped on Monday.Euro zone finance ministers, who met in Brussels on Monday, said they would try to iron out wrinkles in the 750 billion euro ($929 billion) emergency plan they hatched last week when the meet again on Friday.The euro dipped 0.3 percent to $1.2352, having pulled up from a four-year trough of $1.2234 hit on trading platform EBS on Monday. Against the yen, the euro fell 0.5 percent to 114.21 yen.Some traders said the euro could recover some ground before running into resistance. One upside target on Tuesday may be $1.2445, the 61.8 percent retracement of its fall from Friday's high near $1.2575 to Monday's four-year low of $1.2234.But further gains may be difficult after Monday's passage of a U.S. Senate measure under which the United States would oppose International Monetary Fund bailout packages to countries unlikely to repay them.Increasing worries about China were also troubling Asian markets after a Chinese leading economic indicator on Monday showed that growth may already have peaked in the world's third-largest economy.China's main stock index on Monday fell 5.1 percent to its lowest close in a year and biggest one-day fall in eight months. It had edged up 0.1 percent by 0213 GMT.STOCKS SLUGGISHBargain hunting helped many Asian markets start the day positive after on Monday they suffered their heaviest single day losses since early February. The MSCI index of Asia-Pacific shares outside of Japan was down 0.2 percent after falling roughly 3.3 percent.In choppy trade, many markets clung to gains after briefly dipping into negative territory, pressured by consumer discretionary and materials stocks.Seoul shares lost 0.3 percent, but Australian shares edged up 0.2 percent.Japan's Nikkei clawed 0.5 percent higher after booking a 10-week closing low the day before, mainly on short-covering, though worries about the euro zone capped gains."Macro and micro situations are improving both in the United States and Japan, and stock prices that have moved in the opposite direction need to catch up with that eventually," said Mitsuo Shimizu, deputy general manager at Cosmo Securities."But problems in the euro zone won't be solved overnight, and the focus is on whether there's a chance they will end up bringing down the global economy."Gold edged up on Tuesday but held around $20 below a lifetime high struck last week, with spot gold at $1,225 an ounce by 0212 GMT.Crude oil rose from 5-month lows hit on Monday, climbing as the euro rebounded. NYMEX crude for June delivery gained 64 cents to $70.72 a barrel.(Additional reporting by Aiko Hayashi and Masayuki Kitano; Editing by Tomasz Janowski)News posted by www.newsinfoline.com
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