Asian markets advance with EU summit on focus

FXstreet.com (Barcelona) - Most Asian markets are going through moderate gains for third day in a row, following Wall Street's advance, yet on a cautious session with investors focusing on the Merkel - Sarkozy meeting in Paris. In currency markets, Dollar and Swiss Franc are picking up.

Japanese Nikkei Index adds 0.1%, while the Hong Kong Hang Seng Index adds 0.4% and the South Korean Kospi Index rallies 4.3% iin the first day of trading. On the negative side, Australian ASX Index shed 0.4% and Chinese Shangai Composite Index eased 0.3%.

Investors remain cautious on Tuesday, with all eyes in Paris, where German chancellor Angela Merkel and French president Nicolas Sarkozy are meeting in an attempt to ease market concerns about Eurozone sovereign debt troubles.

Dollar and Swiss Franc pick up ahead meeting

EUR/USD recovery from 1.4100 low last week, extended more than 200 pips higher yesterday, with the Dollar easing on weak manufacturing data in the US, and the pair rose above 1.4400, to ease ahead of the European session opening, losing 1.4400 dipping to 1.4385.

GBP/USD has been going through a similar pattern bouncing up from 1.6110/15 lows on Thursday, and extending gains on Friday and Monday, peaking at 1.6410, to trim gains during Tuesday's Asian session, trading at 1.6335 low ahead of London session.

USD/CHF rally from all time lows at 0.7065 last week extended yesterday to fresh two week highs at 0.8000 psychological level favoured by broad based CHF weakness after SNB suggested a plan to open the Swiss Franc to the Euro. During Asian session, however, the pair has trimmed gains, dipping to 0.7765 ahead of Europe.

Source: http://www.fxstreet.com/news/forex-news/article.aspx?storyid=40bab878-1214-43b2-a27b-54874fabb6cb

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