Euro, stocks rally, Spain gets respite but Portugal hit (AFP)

Hong Kong (AFP) - Asian markets rallied Monday after China's surprise move last week to cut interest rates for the first time in more than two years as its leaders try to strengthen growth.

Marc Chandler submits:Ideas that at its meeting tomorrow the ECB may take additional measures to stem the financial crisis that has threatened this week to spread outside the periphery and toward countries like Belgium, are prompting some position adjustment in both the foreign exchange and fixed income markets.

Marc Chandler submits:Spanish bonds have fallen each day this week. The 13 bp increase today brings the 10-year yield increase to 30 bp this week, easily the worst performing bond market within the euro zone. Portugal has the dubious honor of being in second place with a 19 bp yield increase. Pressure is also evident in the short end of the coupon curve. The 2-year yield is up 19 bp on the day and 32 bp on the week; again easily the word performer over the past five sessions.

AFP - European stock markets and the euro rallied on Monday after central bankers and r

European stocks mostly rallied and the euro shot higher against the dollar on Tuesday as bright German economic data and a successful Spanish bond auction provided respite from the eurozone debt crisis.In company news, AT&T scrapped its $39-billion deal to buy T-Mobile USA from Deutsche Telekom, whose shares fell about 1.0 percent on the DAX 30 -- up 1.05 percent overall at 5,730.77 points in midday Frankfurt trade.

The euro rallied slightly from a recent plunge on Wednesday and pressure on Spain eased up, but the eurozone debt crisis still dominated sentiment with Portugal being put on credit watch.European stock markets rallied, and government bond rates eased a day after Spanish and Italian government 10-year borrowing costs rose to a record wide gap above the rate eurozone benchmark Germany must pay.