Asian shares fall on eurozone fears, G20 eyed

HONG KONG: Asian shares were down on Friday as data showing the eurozone slipped deeper into recession at the end of last year crimped market confidence ahead of a Group of 20 meeting in Russia.

Tokyo fell 1.03 percent, with the yen holding steady before finance ministers of G20 states gather for a weekend summit where Japan's controversial "monetary easing" plan to boost its economy is likely to figure prominently.

Hong Kong eased 0.25 percent, while Sydney was flat. Shanghai and Taipei are closed for the Lunar New Year Holiday.

Investor confidence was hit by news that recession in the 17-nation eurozone deepened sharply in the final three months of 2012 as the debt crisis continued to sap growth.

The eurozone economy shrank 0.6 percent in the three months to December, which compared with a contraction of 0.1 percent in the previous quarter, according to official data.

In the second quarter of 2012, it contracted 0.2 percent, meaning that the recession has now lasted three quarters. The eurozone had meanwhile registered zero growth in the first quarter of last year.

Analysts said the latest figures were worse-than-expected, with the major economies also now dragged down, including Germany, the bloc's powerhouse.

For 2012 as a whole, the eurozone economy contracted 0.5 percent and the wider 27-member European Union by 0.3 percent.

The data also weighed on US markets where the Dow Jones Industrial Average shed 9.52 points to 13,973.39, despite two giant M&A deals, including the merger of American Airlines and US Airways to create the largest American carrier.

Ketchup maker Heinz also made a shock announcement that billionaire Warren Buffett's investment firm Berkshire Hathaway would partner with 3G Capital to buy it in a $28 billion deal.

In currency markets, the dollar weakened to 92.75 yen from 92.87 yen in New York on Thursday.

The euro bought $1.3350 and 123.84 yen, slipping from $1.3385 and 124.10 yen in New York.

Oil prices fell, with New York's main contract, light sweet crude for delivery in March dropping two cents to $97.29 a barrel and Brent North Sea crude for April shedding 15 cents to $117.85.

Gold was at $1,631.90 at 0240 GMT, compared with $1,643.25 late Thursday.