Asian markets mixed amid hopes of Greek deal

Tokyo was flat, edging down 8.25 points to 8,841.22, Seoul closed 0.39 per cent higher, adding 7.65 points to 1,964.83 and Sydney added 0.40 per cent, or 17.1 points, to 4,288.4.

Hong Kong was 0.31 per cent, or 62.53 points, higher at 20,501.67.

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 country's debt of 350 billion euros.

The deal under discussion would see private creditors take a "haircut" of at least 50 per cent 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 Greece's deficit could not be reduced to 120 per cent 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.

The single currency fetched $1.3086 and 100.88 yen in Tokyo, down from $1.3104 and 101.48 in New York late Thursday.

The dollar was at 77.09 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 per cent 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 per cent, the broad-based S&P 500 slipped 0.57 per cent and the tech-rich Nasdaq dropped 0.46 per cent.

Eyes turned towards Washington, where gross domestic product growth figures were due to be released later in the day.

Sentiment was boosted earlier this week when the US Federal Reserve said it would keep interest rates at super-low levels until at least the end of 2014.

On oil markets New York's main contract, West Texas Intermediate crude for delivery in March, fell 18 cents to $99.52 a barrel in the afternoon.

Brent North Sea crude for March delivery was down 17 cents at $110.62.

Gold was at $1,718.20 an ounce at 0810 GMT, against $1,708.05 late Thursday.

In other markets:

-- Manila gained 1.48 per cent, or 68.21 points, to 4,679.89.

Philippine Long Distance Telephone added 3.3 per cent to 2,740 pesos, property developer Megaworld climbed 1.2 per cent to 1.72 pesos and oil refiner Petron was 0.7 per cent higher at 11.68 pesos.

-- Wellington closed up 0.40 per cent, or 12.97 points, at 3,294.64.

Fletcher Building, which is leading rebuilding efforts in earthquake-hit Christchurch, rose 2.2 per cent to NZ$5.54 after the central bank said the final bill from the disaster would approach NZ$30 billion ($24.5 billion).