Asian markets rise on hopes of Greek debt deal

Asian markets rose Friday on tentative hopes that Greece will be able to agree a deal with creditors on writing down some of its debt, although gains were capped by underwhelming US economic figures.Tokyo gained 0.40 percent by the break, Hong Kong was 0.55 percent higher, Sydney added 0.99 percent and Seoul climbed 0.10 percent.Shanghai and Taipei were closed for a public holiday.Greek Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos on Thursday resumed talks with banks and insurers on a major writedown to help the troubled country escape a devastating default.The discussions aim to reach agreement on a voluntary exchange of bonds that would wipe 100 billion euros ($130 billion) off the countrys debt of 350 billion euros.The deal under discussion would see private creditors take a haircut of at least 50 percent on the 200 billion euros in debt they hold. The previous talks have snagged on the amount of interest to be paid on the remaining debt.Athens needs to make the deal work in order to receive another tranche of a bailout as it faces a bond reimbursement worth 14.5 billion euros on March 20.Meanwhile Jean-Claude Juncker, head of the Eurogroup of eurozone finance ministers, said that creditor countries should also waive a portion of the Greek debt.He said Greeces deficit could not be reduced to 120 percent of gross domestic product -- the level deemed desirable by the International Monetary Fund and a condition for further aid -- through the waiver of private debt only.Optimism an agreement can be reached helped the euro hold up against major currencies. The single currency fetched $1.3096 and 101.40 yen in Tokyo, marginally down from $1.3104 and 101.48 in New York late Thursday.The dollar was at 77.40 yen, almost unchanged from New York.However, disappointing data from the United States caused a drag.Sales of new homes in the United States skidded in December, down 2.2 percent from November, the Commerce Department said, bringing to a close the worst year on record.Only 302,000 new houses were sold during the year, the lowest level in records dating to 1963.New claims for unemployment benefits rose to 377,000, although the four-week average, an indicator of layoffs, continued to head lower.The Dow closed down 0.18 percent, the broad-based S&P 500 slipped 0.57 percent and the tech-rich Nasdaq dropped 0.46 percent.Eyes will now be on Washington, where gross domestic product growth figures are due to be released later in the day.On oil markets New Yorks main contract West Texas Intermediate crude for delivery in March gained one cent to $99.71 per barrel and Brent North Sea crude for March settlement was up 10 cents to $110.89.Gold was at $1,717.70 an ounce at 0200 GMT, against $1,708.05 late Thursday.