The euro held declines versus major peers and Japanese index futures dropped as the European Central Bank tightened the terms of Greece™s bailout by moving to limit funding for lenders. Australian bonds rose, while Chinese stock futures jumped after a reduction in the bank reserve ratio.
The 19-nation euro was little changed at $1.1330 by 7:44 a.m. in Tokyo, after sinking as much as 1.4 percent Wednesday. Nikkei 225 Stock Average futures fell 0.3 percent in Chicago as the Standard & Poor™s 500 Index erased a spike higher to close down 0.4 percent after the ECB move. Ten-year Australian yields fell seven basis points amid a four basis-point drop in Treasury rates, while New Zealand™s NZX 50 Index lost 0.1 percent after crude oil resumed its decline after a four-day rally. Futures on the FTSE China A50 Index rose 5.1 percent in recent trading.
The ECB said it will no longer suspend its own collateral rules for Greek government debt, citing doubt over the new government™s commitment to previous reform pledges. The decision, which came hours after Greek Finance Minister Yanis Varoufakis met with ECB President Mario Draghi, will force Greek lenders to seek funding from their own central bank at less-advantageous rates than was offered by the ECB. China joined the global wave of monetary easing late Wednesday by cutting the reserve requirement to boost the supply of loans.
Source : Bloomberg