Dollar dips after Wall Street rally

#GNN - #TOKYO: The #dollar edged back against the yen in Asian trade Thursday after surging to a near four-month high in US trade in response to forecast-beating US economic growth data.

In early trade in Tokyo the greenback bought 102.78 yen, compared with 102.81 yen late in New York but still well up from the 102.11 yen earlier in Japan. It had surged to 103.09 yen on Wall Street  its strongest since early April after the Commerce Department said the US economy grew 4.0 percent in the second quarter, much more than the 3.0 percent predicted.

That was also a sharp rebound from the 2.1 percent contraction in the previous three months that was caused by a severe winter.

The euro bought $1.3396 in Tokyo midday trade, compared with $1.3395 in New York where it hit a new eight-month low of $1.3367.The single currency also fetched 137.68 yen on Thursday against 137.73 yen in US trade.

While the dollar was boosted by the growth data it retreated after the Federal Reserve said after its latest policy meeting that while the economy was strengthening, it was still concerned about the jobs market and would keep interest rates low for as long as needed.

The statement was "relatively dovish on the labour market, with the Fed keen to retain the message that rate hikes are some time away," National Australia Bank said in a note.

Investors seemed little concerned after talks between Argentina and the US hedge funds it has branded "vultures" failed to reach agreement Wednesday on a debt repayment, effectively pushing the country into default.(GNN)(AIP)(AFP)

Tokyo stocks open up 0.28 percent

(GNN) - TOKYO: Tokyo stocks opened 0.28 percent higher on Thursday after the blue-chip Dow index powered to a new record on Wall Street thanks to robust US company earnings.

The Nikkei 225 index gained 43.57 points to 15,422.87 at the start. The Dow Jones Industrial Average ended at a record high Wednesday as strong Intel earnings and a new IBM venture with Apple boosted the blue-chip index.

The 30-issue Dow jumped 0.45 percent to 17,138.20 while the broad-based S&P 500 gained 0.42 percent to 1,981.57.The dollar was firm after a US Federal Reserve report said economic activity continued to pick up steam across the world´s largest economy.

The greenback was changing hands at 101.64 yen in early Asian trade Thursday compared with 101.69 yen in New York Wednesday afternoon.

The euro bought $1.3527 and 137.49 yen against $1.3524 and 137.55 yen in US trade.

Asia shares extend losses after Wall St slip

(GNN) - HONG KONG: Asian markets sank Wednesday, following a negative lead from Wall Street, while China released data showing inflation eased slightly in June after hitting a four-month high in May.

There is also a nervousness that equities could be in line for a correction following a recent rally over the past few weeks.

Tokyo slipped 0.34 percent, Sydney shed 0.90 percent and Seoul was 0.44 percent lower, while Hong Kong lost 1.16 percent and Shanghai eased 0.18 percent.

Jakarta was closed for presidential elections.

US shares retreated on Tuesday for a second straight session after returning from the long, Independence Day weekend. The S&P 500 and Dow closed Thursday at record highs after a better-than-expected report on US jobs creation.

The Dow slipped 0.69 percent, the S&P 500 fell 0.70 percent and the Nasdaq tumbled 1.35 percent.

Some observers have predicted a pullback after the latest surge across global markets. Among them this week Nobel prizewinning economist Joseph Stiglitz said he was "very uncomfortable" with current prices.

There are also concerns that the Federal Reserve could accelerate its plan to raise interest rates next year in light of recent upbeat economic data out of Washington.

In China the National Bureau of Statistics said in a statement that inflation came in at 2.3 percent last month, down from 2.5 percent in May.

It is also slightly below 2.4 percent forecast by economists for Dow Jones Newswires and well short of the 3.5 percent annual target set by Beijing.

Traders will now be keeping a close eye on Thursday´s trade statistics and the release next week of April-June economic growth data, hoping for an improvement on the previous three months.

On currency markets the dollar´s advances against the yen last week have been all but eliminated.

In early Tokyo trade the greenback was quoted at 101.53 yen, against 101.57 yen in New York and well below the 102.11 level touched on Monday in Japan.

The euro bought $1.3615 and 138.26 yen compared with $1.3611 and 138.24Oil prices were mixed. US benchmark West Texas Intermediate for August delivery rose eight cents to $103.48 while Brent crude eased eight cents to $108.86.Gold fetched $1,319.57 an ounce at 0210 GMT compared with $1,322.43 late Tuesday. (GNN)(AFP)(AIP)

Asia shares slip after Wall St losses

(GNN) - HONG KONG: Asia´s markets slipped for a second day Tuesday, after the Dow and S&P 500 in Wall Street retreated from record highs as analysts warned a recent equities rally could come to a sudden halt.

Investors are hoping to get a better handle on the state of the global economy with the release this week of Chinese economic data as well as minutes from the Federal Reserve´s most recent policy meeting.

Tokyo slipped 0.77 percent, Sydney lost 0.23 percent, Shanghai fell 0.14 percent and Seoul was down 0.16 percent, while Hong Kong was flat.

After a long, Independence Day weekend US shares returned on Monday for the first time since Thursday´s better-than-expected jobs report.

However, they ended in the red on profit-taking while there were warnings that global markets could be headed for further losses after enjoying a positive run-up in the past few weeks, which has seen the Dow and S&P 500 touch new records.

Nobel prize-winning economist Joseph Stiglitz said in a television interview that he was "very uncomfortable" with current stock prices, while Raymond James managing director Jeffrey Saut said in a note that stocks are vulnerable to a 10-12 percent decline in the weeks ahead.

The Dow slipped 0.26 percent after breaking 17,000 for the first time on Thursday, while the S&P 500 eased 0.39 percent while the Nasdaq declined 0.77 percent.

The dollar also dipped in New York, sitting at 101.87 yen late in trade, well down from the 102.11 yen in Tokyo earlier in the day.

On Tuesday morning the greenback bought 101.74 yen. The euro fetched $1.3607 and 138.45 yen in Japan, against $1.3604 and 138.59 yen in US trade.

On Wednesday the Fed is due to release its minutes from the most recent policy meeting.

Rakuten Securities senior market analyst Masayuki Doshida telling Dow Jones Newswires: "Attention is now turning to US corporate earnings, and the US Fed´s stance on monetary policy, especially the pace of stimulus tapering after last week´s strong jobs data."

Also Wednesday China will announce inflation data for June, following that up with trade figures on Thursday. There are hopes for another upbeat set of results following a recent string of good news, including on manufacturing activity.

In Seoul Samsung Electronics was 0.23 percent higher despite warning of a 25 percent plunge in its operating profit in the second quarter of the year as its smartphone business grapples with a strong won and cheap rivals from China.

Analysts said the weak figures had already been priced in, resulting in a more than 10 percent fall since early June.

Oil prices edged down. US benchmark West Texas Intermediate for August delivery eased four cents to $103.49 while Brent crude for August was down 12 cents to $110.12.

Gold fetched $1,317.29 an ounce at 0215 GMT compared with $1,314.03 late Monday. (GNN)(AFP)(AIP)