ASIA-Shares face flat start on Greece caution

WELLINGTON: Asian stocks are likely to open flat on Tuesday as investors remain cautious about Greece's debt problems and seek direction in thin markets as Wall Street was closed for Independence Day on Monday, leaving European markets to offer leads.

British shares were stronger for a seventh consecutive session, gaining nearly 0.5 percent as oil stocks rose, while European shares added 0.2 percent.

World stocks, as measured by the MSCI world equity index, rose 0.47 percent, its highest level since June 1. Emerging stocks rose 1 percent, helped by Shanghai stocks which gained nearly 2 percent.

However, sentiment was doused by a warning from ratings agency Standard & Poor's that a debt rollover plan being considered for Greece may still put the country into "selective default".

The euro eased after the S&P warning, but has support from expectations that the European Central Bank will raise interest rates at its policy meeting later this week.

Japanese markets, which hit a two-month high on Monday, are seen starting flat with investors wary of pushing much higher ahead of key data, such as U.S. jobs, later in the week.

The Nikkei broke through the 10,000 level for the first time since May 2, but futures traded in Chicago were only 40 points above the last closing level in Osaka.

Australian stocks are seen steady, with share price index futures up 0.4 percent for a 3.25 point premium to the close of the underlying S&P/ASX 200 index. However, firmer metal and gold prices may give a lift to mining stocks, while investors keep an eye on a central bank rate meeting. – Reuters