BANGKOK – Asian stock markets fell Tuesday as talks dragged on to resolve a massive debt mess in Greece before it explodes into a wider financial crisis.

Benchmark oil hovered below $97 per barrel while the dollar rose against the euro and the yen.

Japan’s Nikkei 225 fell 0.4 percent to 8,891.37. South Korea’s Kospi rose marginally to 1,973.63 and Hong Kong’s Hang Seng was 0.2 percent lower at 20,677.11. Benchmarks in Singapore and Malaysia rose while Indonesia and mainland China fell.

Greek political leaders have been haggling over the details of a cost-cutting package required for the country to get more urgently needed loans from international lenders. Some euro130 billion ($170 billion) in bailout money is on the line.

Without an injection of emergency money, Greece will likely default on its bond repayments on March 20 — an event that could shake European banks and other private lenders with Greek debt on their books.

President Nicolas Sarkozy of France and German Chancellor Angela Merkel have warned Greek leaders that they need to push through the austerity measures or risk letting the country go bankrupt.

“The market is losing patience and the EU actually is losing patience on Greece’s procrastination,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong, explaining why the market is stalled. “If and when Greece capitulates, I think we can see the market rising further.”

Talks on the Greek austerity package were postponed to Tuesday. Separately, Greek Prime Minister Lucas Papademos was meeting with the country’s creditors late Monday. Greece wants its creditors to swap their Greek government bonds for new ones that are worth 50 percent less. Before that can happen, however, Greece needs its emergency bailout to use as a cash payment in the bond swap.

Lee Kok Joo, head of research at Phillip Securities in Singapore, said economic data showing a markedly improved employment picture in the U.S. and a likely “soft landing” for China’s slowing economy — rather than a plunge — are supporting stock markets, despite the threat of a Greek default.

“If that does happen eventually, I do not think the impact on the market will be very severe,” he said. “The market will still be supported by overall macro outlook.”

Chinese property and construction shares were battered a day after the International Monetary Fund warned that a sharp downturn in Europe could cut China’s economic growth rate nearly in half.

Hong Kong-listed Poly Real Estate Group Co. lost 4.1 percent. China Resources Cement Holdings dropped 3.4 percent. China State Construction Engineering shed 2 percent.

Falling gold prices hurt shares linked to the precious metal. Australian gold miner Newcrest Mining lost 1.3 percent. Hong Kong-listed Zijin Mining Co., China’s biggest gold miner, tumbled 3.5 percent.

The Dow Jones industrial average fell or 0.1 percent to close at 12,845.13 on Friday. The Standard & Poor’s 500 index slipped marginally to 1,344.33. The Nasdaq composite fell 0.1 percent to 2,901.99.

Benchmark oil for March delivery was up 4 cents to $96.97 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 93 cents to finish at $96.91 per barrel on the Nymex on Monday.

In currencies, the euro fell to $1.3098 from $1.3125 late Monday in New York. The dollar rose to 76.67 yen from 76.59 yen.

BANGKOK – Asian stock markets were muted Tuesday as talks dragged on to resolve a massive debt mess in Greece before it explodes into a wider financial crisis.

Japan’s Nikkei 225 fell 0.2 percent to 8,916.09. South Korea’s Kospi rose 0.3 percent to 1,979.30 and Hong Kong’s Hang Seng was 0.6 percent higher at 20,826.19. Benchmarks in Taiwan and Singapore rose while mainland China fell.

Greek political leaders have been haggling over the details of a cost-cutting package required for the country to get more urgently needed loans from international lenders; some euro130 billion ($170 billion) in bailout money is on the line.

Without an injection of emergency money, Greece will likely default on its bond repayments on March 20 — an event that could shake European banks and other private lenders with Greek debt on their books.

President Nicolas Sarkozy of France and German Chancellor Angela Merkel have warned Greek leaders that they need to push through the austerity measures or risk letting the country go bankrupt.

“The stakes are high with a potential disorderly default and Eurozone exit on the cards should no agreement be reached,” analysts at Credit Agricole CIB in Hong Kong said in an email.

The Dow Jones industrial average fell or 0.1 percent to close at 12,845.13 on Friday. The Standard & Poor’s 500 index slipped marginally to 1,344.33. The Nasdaq composite fell 0.1 percent to 2,901.99.

Benchmark oil for March delivery was up 36 cents to $97.28 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 93 cents to finish at $96.91 per barrel on the Nymex on Monday.

In currencies, the euro fell to $1.3122 from $1.3125 late Monday in New York. The dollar rose to 76.64 yen from 76.59 yen.

LONDON – Markets were in a cautious mood on Monday as talks dragged on between Greek political leaders over a fresh austerity package that is required if the debt-ridden country is to get a crucial bailout package.

Even though another round of deadlines have passed, the prevailing mood in the markets is that Greece will get a debt-reduction deal with its private creditors as well as a second bailout from its partners in the eurozone and the International Monetary Fund.

However, as one deadline after another is missed, some traders are preparing for the worst — a disorderly debt default that could send shockwaves round the global economy.

The leaders of the parties backing Greece’s coalition government, which is headed by Prime Minister Lucas Papademos, were to hold a second day of emergency talks over austerity measures that rescue creditors are demanding in return for more money. The talks, however, were postponed until Tuesday despite pressure from the European Union for a speedy agreement so that the country can avoid a default on its debt.

Greek politicians are balking at the level of austerity demanded by the country’s bailout lenders. The three party leaders have publicly opposed steep cuts in public spending and private sector pay demanded by the eurozone and International Monetary Fund, but their backing is needed for the government to reach a deal for a euro130 billion ($170 billion) bailout.

“While we still believe that a voluntary Greek debt restructuring deal and further EU aid will be forthcoming, the risks of a more disruptive scenario have probably increased,” said Vassili Serebriakov, an analyst at Wells Fargo Bank.

In Europe, the FTSE 100 index of leading British shares closed down 0.2 percent at 5,892.20 while Germany’s DAX was flat at 6,764.83. The CAC-40 in France ended 0.6 percent lower at 3,405.27.

On Wall Street, the Dow Jones industrial average was down 0.3 percent at 12,822.38 while the broader Standard & Poor’s 500 index was 0.2 percent lower at 1,341.82.

So far this year, the mood in markets has been particularly upbeat, especially compared with the febrile trading that marked 2011. Stocks have rallied — many indexes are at their highest levels in months — while the cost of borrowing for key euro countries, such as Italy and Spain, has eased to levels that are considered sustainable in the long-run.

One of the reasons behind the change in tone has been optimism that Greek Prime Minister Lucas Papademos, who is due to meet with negotiators from the eurozone and the International Monetary Fund later Monday, will secure the second bailout.

The euro130 billion ($171 billion) bailout deal is vital for Greece to avoid bankruptcy next month as it cannot cover a euro14.5 billion ($19.1 billion) bond repayment due March 20 without the rescue funds.

The bailout’s implementation also depends on Greece’s progress in separate talks with banks and other private bondholders to forgive euro100 billion ($131.6 billion) in Greek debt, in exchange for a cash payment and new bonds with more lenient repayment terms.

Another key prop to the improvement in market sentiment this year has been a run of solid economic data out of the U.S., which has prompted some analysts to revise up their expectations for growth in the world’s largest economy. The improving trend was evident last Friday, when government figures showed the U.S. economy generated a bigger than expected 243,000 jobs in January, pushing the unemployment rate down to 8.3 percent.

The euro was under pressure as investors awaited developments in Athens — the currency was trading 0.1 percent lower at $1.3109.

Oil prices tracked the broader market trends Monday, with benchmark oil for March delivery down 58 cents at $97.26 a barrel in electronic trading on the New York Mercantile Exchange.

Greece will likely remain the focal point over the week, though a raft of corporate earnings, particularly in Europe, and central bank meetings could garner some interest. The European Central Bank’s monthly policy meeting on Thursday could be crucial in determining market expectations of whether there will be further interest rate reductions. Meanwhile, many traders think the Bank of England will clear the way to inject more money into the U.K. economy in the hope of boosting lending.

Earlier Asian shares mostly traded higher as investors there had their first chance to respond to join in the advance generated by Friday’s upbeat jobs data.

Japan’s Nikkei 225 index rose 1.1 percent to close at 8,929.20, its highest closing in more than three months but Hong Kong’s Hang Seng lost 0.2 percent to 20,709.94. Benchmarks in Singapore and mainland China also rose.

_____

Pamela Sampson in Bangkok contributed to this report.

GREECED: The Dow dropped 17 points and other stock indexes dropped slightly as talks dragged on between Greek political leaders over a fresh cost-cutting measures required for Greece to get more bailout loans.

NEW WARNINGS: The heads of France and Germany warned Greek leaders that they need to push through spending cuts and other measures or risk letting the country go bankrupt. If European leaders don’t sign off the bailout for Greece, the country will likely default when a bond repayment comes due March 20.

WORST OF THE DOW: Travelers Cos. Inc. led the Dow lower with a 1.3 percent loss.

NEW YORK – Stocks edged lower in afternoon trading Monday as talks dragged on between Greek political leaders over a fresh austerity package required for the country to get more bailout loans.

President Nicolas Sarkozy of France and German Chancellor Angela Merkel warned Greek leaders that they need to push through new reforms or risk letting the country go bankrupt. Greece is hoping the European Central Bank, the International Monetary Fund and the European Commission will release a second installment of $170 billion in loans. Without that money, Greece will likely default when a bond repayment comes due March 20.

In Greece, talks between the prime minister and leaders of parties backing his coalition government were postponed for a day, even as European leaders prodded the government to push through new spending cuts, layoffs and other austerity measures.

The Dow Jones industrial average fell 49 points to 12,813 as of 2 p.m. Eastern time. Travelers Cos. Inc. led the Dow lower with a 1.5 percent decline.

In other trading, the Standard & Poor’s 500 index fell 4 points to 1,341. The Nasdaq composite fell 7 points to 2,897.

Sam Stovall, chief equity strategist at S&P Capital IQ, thinks investors are starting to wonder if the stock market’s recent stretch of calm trading is a prelude to a big drop. Trading has turned subdued compared with the wild swings of 2011. The S&P has closed up or down by more than 1 percent only three times this year. In December, that happened nine times.

“I look at it like a very-low-tide warning of an impending tsunami,” Stovall said. “We’re setting ourselves up for a decline, the sort of decline that would make you sit up and take notice.”

A worrisome sign, Stovall said, is a drop in the number of volatile trading days in which the S&P index ends lower. There have been only five days in the last month in which the S&P index has moved by more than 1 percent and then ended with a loss. That’s half of the monthly average since 2000. On April 29, for instance, the S&P 500 hit its peak for the year after an even calmer period, then lost 19 percent before hitting bottom on Oct. 3.

Stocks surged Friday after a surprisingly good U.S. employment report. Large gains in the market are often followed by modest moves as traders pull some of their winnings off the table. Since 1950, whenever the S&P rose by 1 percent or more in a trading day, the index has inched up an average of just 0.1 percent the next day, according to S&P Capital IQ.

Among companies making big moves:

• Boeing Co. fell 1.3 percent following reports that the company found a problem in its 787 Dreamliner. The aircraft maker said it was working to fix it and that there was no safety concern.

• Micron Technology Inc. fell 1 percent following news that the chip maker’s CEO died in a plane crash. Steve Appleton, 51, was at the helm for 18 years, leading the only company he’d ever worked for.

• Humana dropped 5.8 percent, the biggest loss in the S&P 500 index. The health insurance company reported revenue that fell short of analysts’ expectations. Humana also raised its earnings outlook for 2012 but that, too, was below analysts’ forecast.

NEW YORK – U.S. stock futures fell Monday as talks dragged on between Greek political leaders over a fresh austerity package that is required if the debt-ridden country is to get a crucial bailout package.

Dow futures are down 24 points at 12,769. The broader Standard & Poor’s 500 futures fell 4 points to 1,335. The Nasdaq composite futures fell 5 points to 2,519.

The declines follow a big gain Friday on the heels of surprisingly good U.S. employment figures.

In Europe, the leaders of the parties backing Greece’s coalition government are set to hold a second day of emergency talks over austerity measures that rescue creditors are demanding in return for more money.

Fears that a deal won’t emerge have reinforced concerns of a disorderly Greek debt default that could send shockwaves through the global economy. Prime Minister Lucas Papademos will meet with negotiators from the eurozone and the International Monetary Fund in the afternoon and then with the leaders of the three parties backing his coalition.

The parties all publicly oppose steep cuts in private sector pay demanded by the eurozone and IMF, but their backing is needed for the government to reach a deal for the bailout, which must be approved by the Greek Parliament. The new euro130 billion ($171 billion) bailout deal is vital for Greece to avoid bankruptcy next month as it cannot cover a euro14.5 billion ($19.1 billion) bond repayment due March 20 without the rescue funds.

The bailout’s implementation also depends on Greece’s progress in separate talks with banks and other private bondholders to forgive euro100 billion ($131.6 billion) in Greek debt, in exchange for a cash payment and new bonds with more lenient repayment terms.

In Europe, the FTSE 100 index of leading British shares was down 0.2 percent at 5,892 while Germany’s DAX fell 0.2 percent to 6,756. The CAC-40 in France was 0.6 percent lower at 3,406.

Oil prices tracked the broader market trends, with benchmark oil for March delivery down $1.17 at $96.67 a barrel in electronic trading on the New York Mercantile Exchange.

Greece will likely remain the focal point over the week, though a raft of corporate earnings, particularly in Europe, and a host of central bank meetings could garner some interest. The European Central Bank’s monthly policy meeting on Thursday could be crucial in determining market expectations of whether there will be further interest rate reductions. Meanwhile, many traders think the Bank of England will clear the way to inject more money into the U.K. economy in the hope of boosting lending.

Earlier Asian shares mostly traded higher as investors there had their first chance to respond to join in the advance generated by Friday’s upbeat jobs data.

Japan’s Nikkei 225 index rose 1.1 percent to close at 8,929.20, its highest closing in more than three months but Hong Kong’s Hang Seng lost 0.2 percent to 20,709.94. Benchmarks in Singapore and mainland China also rose.

LONDON – Markets were in a jittery mood on Monday as talks dragged on between Greek political leaders over a fresh austerity package that is required if the debt-ridden country is to get a crucial bailout package.

The leaders of the parties backing Greece’s coalition government are set to hold a second day of emergency talks over austerity measures that rescue creditors are demanding in return for more money. Prime Minister Lucas Papademos will meet with negotiators from the eurozone and the International Monetary Fund in the afternoon and then with the leaders of the three parties backing his coalition.

The parties all publicly oppose steep cuts in private sector pay demanded by the eurozone and IMF, but their backing is needed for the government to reach a deal for the bailout, which must be approved by the Greek Parliament. The new euro130 billion ($171 billion) bailout deal is vital for Greece to avoid bankruptcy next month as it cannot cover a euro14.5 billion ($19.1 billion) bond repayment due March 20 without the rescue funds.

The bailout’s implementation also depends on Greece’s progress in separate talks with banks and other private bondholders to forgive euro100 billion ($131.6 billion) in Greek debt, in exchange for a cash payment and new bonds with more lenient repayment terms.

“Time is running out,” said Lee Hardman, an analyst at The Bank of Tokyo-Mitsubishi UFJ.

Fears that a deal won’t emerge have reinforced concerns of a disorderly Greek debt default that could send shockwaves round the global economy. That’s kept investors on edge on Monday, even though market sentiment has been fairly buoyant of late following a run of strong U.S. economic data, notably last Friday’s forecast-busting jobs figures for January.

In Europe, the FTSE 100 index of leading British shares was down 0.5 percent at 5,871 while Germany’s DAX fell 0.7 percent to 6,720. The CAC-40 in France was 1.3 percent lower at 3,384.

Wall Street was also poised for a lower opening following its rally on Friday, when government figures showed the U.S. economy generated a bigger than expected 243,000 jobs in January, pushing the unemployment rate down to 8.3 percent. Dow futures were down 0.4 percent at 12,744 while the broader Standard & Poor’s 500 futures fell 0.6 percent at 1,332.

The euro was also under pressure as investors awaited developments in Athens — the currency was trading 0.8 percent lower at $1.3041.

Oil prices tracked the broader market trends, with benchmark oil for March delivery down $1.17 at $96.67 a barrel in electronic trading on the New York Mercantile Exchange.

Greece will likely remain the focal point over the week, though a raft of corporate earnings, particularly in Europe, and a host of central bank meetings could garner some interest. The European Central Bank’s monthly policy meeting on Thursday could be crucial in determining market expectations of whether there will be further interest rate reductions. Meanwhile, many traders think the Bank of England will clear the way to inject more money into the U.K. economy in the hope of boosting lending.

Earlier Asian shares mostly traded higher as investors there had their first chance to respond to join in the advance generated by Friday’s upbeat jobs data.

Japan’s Nikkei 225 index rose 1.1 percent to close at 8,929.20, its highest closing in more than three months but Hong Kong’s Hang Seng lost 0.2 percent to 20,709.94. Benchmarks in Singapore and mainland China also rose.

_____

Pamela Sampson in Bangkok contributed to this report.

EURO UP: The euro rose to a three-week high against the dollar on hopes that the Greek government will reach a deal with creditors to trim the country’s debt.

GAS GAIN: Natural gas prices rose after Chesapeake Energy said it will cut production in response to cheap prices and rising supplies. Stocks of gas producers jumped.

STEADY CLIMB: The S&P 500 index edged up 0.62 points Monday to close at 1,316. The stock market is off to a strong start in 2012. Better-than-expected job growth in the U.S. and easing worries about Europe’s debt woes have pushed the S&P 500 up 4.6 percent for the year.

BANGKOK – Asian stocks posted muted gains Monday in trade thinned by Chinese New Year holidays as talks on a debt agreement for Greece dragged on.

Only a handful of markets were open for business. Trading is closed in mainland China, Hong Kong, Taiwan, Indonesia, Singapore, Malaysia, the Philippines and South Korea.

Japan’s Nikkei 225 stock average was up 0.2 percent at 8,779.16 while Australia’s S&P/ASX 200 slipped 0.3 percent to 4,228.10. New Zealand’s benchmark added 0.1 percent to 3,279.19.

On Friday, stocks in Europe mostly held their gains for the week, waiting for the outcome of Greece’s negotiations with its creditors on a deal to cut the face value of up to euro200 billion ($258 billion) in debt by 50 percent.

Over the weekend, the representative of Greece’s private creditors said the talks are continuing even after his unexpected departure from the country.

A deal in Athens would allow the country to receive a second bailout package from other European governments and the International Monetary Fund, and cut Greece’s debt from an estimated 160 percent of its annual economic output to 120 percent by 2020.

That is still painfully high, but without the help, Greece will not be able to pay euro14.5 billion in debt due March 20. A Greek default would send borrowing costs higher across Europe and could trigger chaos in the global financial system.

On Wall Street on Friday the Dow rose 96.50 points to close at 12,720.48. The S&P 500 index inched up 0.88 to 1,315.38 and the Nasdaq gained 1.63 points to 2,786.70.

In energy trading, benchmark crude was down 41 cents at $97.92 a barrel in electronic trading on the New York Mercantile Exchange.

NEW YORK – Microsoft and IBM drove the Dow Jones industrial average up in Friday trading after the tech giants reported stronger earnings than analysts had expected.

But an earnings miss by Google caused its stock to plunge Friday, and other indexes were slightly lower.

The Dow rose 56 points to 12,680 as of 2:15 p.m. Eastern time. That’s a gain of 0.4 percent.

Microsoft said sales of Xbox games and Office software helped push revenue up in the last quarter of 2011. IBM credited better sales of software and services and raised its earnings outlook for the year. Microsoft rose 5 percent and IBM rose 4 percent.

In other trading, the Standard & Poor’s 500 index fell 4 points, or 0.3 percent, to 1,310. The Nasdaq composite fell 8, or 0.3 percent, to 2,780.

Plenty of things are going right, said Frank Fantozzi, CEO of Planned Financial Services, an independent wealth manager in Cleveland. Applications for unemployment benefits dropped last week to the lowest level in nearly four years. Housing sales are steadily rising. And even though high-profile companies such as Google and JPMorgan Chase have posted disappointing earnings results in the past week, the bulk of companies are beating estimates, he said.

“Overall, we’re moving in the right direction and it’s bolstered the market,” Fantozzi said. “The S&P getting over 1,300 this week is a nice sign.

Google lost 8.2 percent after its earnings per share fell a dollar short of analysts’ estimates. The misfire stemmed from an 8 percent drop in prices that the Internet search giant charges advertisers for each click.

In another sign that investors were becoming more willing to take on risk, the yield on the 10-year Treasury note rose to 2.03 percent, the first time its been above 2 percent in two weeks. The yield, a widely used benchmark for corporate and consumer borrowing, has been mostly trading below 2 percent since early December as investors park money in relatively low-risk assets.

The National Association of Realtors said that home sales rose 5 percent in December, the third straight monthly increase.

Concerns about debt talks in Greece still hang over the market. Greece is in the middle of talks with creditors to reduce its debts and avoid a default. A deal is needed to help Greece avoid a default when a euro14.5 billion bond repayment comes due in March.

Among other companies in the news:

• Capital One Financial lost 6 percent. The bank and credit-card company’s earnings sank 41 percent as expenses for marketing, salaries and legal fees jumped compared with the year before.

• Schlumberger rose less than 1 percent. The oil-field services company’s quarterly profit surged 36 percent, helped by exploration work in the Middle East and Africa. The company also raised its quarterly dividend to 27.5 cents.

All three indexes are on track to end the week with gains. The Dow is up 2 percent and the S&P 500 1.7 percent.

Stocks have been on a slow and steady climb to start 2012. The S&P 500 has closed higher on 10 of 12 days and is up 4.2 percent for the year.