Asian markets edge down on Europe fears

HONG KONG: Asian markets slipped on Wednesday as unease over the eurozone debt crisis overshadowed a strong rise in consumer confidence in the United States.

On the first full day of trade after Christmas eyes were on Italy, which will hold a debt auction later in the day amid weakened confidence after lenders in Europe deposited a record amount with the central bank.

Tokyo was flat by the break, Hong Kong slipped 0.54 percent, Sydney fell 1.10 percent, Seoul shed 0.98 percent and Shanghai was 0.58 percent off.

Markets were given a strong cue from the United States, where another batch of upbeat data indicated a brighter outlook for the world's biggest economy.

On forex markets, the dollar stood at 77.79 yen, from 77.88 in New York late Tuesday.

The euro was at $1.3069 and 101.68 yen, compared with $1.3070 and 101.77 yen in New York.

Oil dipped slightly after surging Tuesday on Iran's warning that it could shut down the strategic Strait of Hormuz if the West applies sanctions on Iran's oil exports.

New York's main contract light sweet crude for February delivery lost four cents to $101.30 barrel and Brent North Sea crude for February delivery shed 20 cents to $109.07.

Gold stood at $1,588.01 an ounce at 0200 GMT, compared with $1,597.27 late Tuesday.