2012.06.05 08:12:25 MARKET TALK: Asian Summary; Stocks, EUR Higher On G-7 Hopes

0612 GMT [Dow Jones] ASIAN SUMMARY: Regional markets are mostly higher as investors to look ahead to forthcoming key policy meetings; the Nikkei rises 1.0%, the S&P/ASX gains 1.4%, the HSI is up 1.0%, the Kospi rises 1.0%, the Taiex adds 1.5%, the Sensex is 0.8% higher and the Shanghai Composite is up 0.4%. In FX markets, the EUR recovers on hopes the G-7 nations would come up with steps to help defuse the European crisis; a group of G-7 finance ministers and central bankers will hold a teleconference later in the day. The USD/JPY is at 78.40 from 78.35 late Friday in New York, the EUR/JPY is at 98.20 from 97.93, and the EUR/USD is at 1.2525 from 1.2502. The RBA cuts interest rates by 25 bps to buttress the Australian economy against growing signs of deterioration in the global growth outlook; the cut, which was widely expected by economists, lowers the cash rate to 3.50%, a level last seen late-2009. The AUD/USD is higher at 0.9796 vs 0.9726 before the RBA rate announcement, while the AUD/JPY jumps to 76.80 vs 76.42. The HSBC China Services PMI rises to a 19-month-high of 54.7 in May vs 54.1 in April, driven by a sustained gain in new business last month. Australia's current account deficit widened to a seasonally-adjusted A$14.89 billion in 1Q12 from 4Q11 vs a A$14.7 billion deficit tipped; the 4Q deficit was revised to A$9.64 billion from the A$8.37 billion initially reported. Spot gold is at $1,617.40, down 90 cents from the NY close. July Nymex crude oil futures are up 84 cents at $84.82/bbl. (philip.vahn@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires June 05, 2012 02:12 ET (06:12 GMT)