Asian shares fall, dollar firms on Fed tapering bets

TOKYO Tue Nov 12, 2013 6:40pm EST

1 of 8. A visitor walks past logos at the Tokyo Stock Exchange in Tokyo June 13, 2013.

Credit: Reuters/Toru Hanai

TOKYO (Reuters) - Asian shares sagged and the dollar stuck close to a two-month high against the yen in early trade on Wednesday as investors positioned for the possibility that the U.S. Federal Reserve would soon start slowing down its asset-buying stimulus.

Atlanta Fed President Dennis Lockhart told reporters on Tuesday that a reduction of the central bank's quantitative easing program remains a possibility at the Federal Open Market Committee's next policy meeting on December 17-18.

"There is a danger to the global stock market rally as the December FOMC meeting draws closer," said Andrew Wilkinson, chief economic strategist at Miller Tabak.

"Equity investors must monitor how emerging markets deal with the escalation of taper talk following a healthy October payroll report," he said in a note to clients.

Data on Friday showed an unexpected surge in U.S. jobs growth in October, suggesting the labor market could be strong enough for the Fed to begin to pare its $85 billion-a-month bond-buying program sooner rather than later.

A Reuters poll of primary dealers on Friday found a majority of respondents still believe the Fed taper would not happen until March or later.

Global markets have been buffeted since May over speculation of an imminent end to cheap dollars, a major driver of assets in recent years.

Signals from central bank officials have been mixed, with Narayana Kocherlakota, president of the Minneapolis Fed, speaking about the need for aggressive action to foster growth.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell about 0.2 percent. Australia's S&P/ASX 200 index .AXJO was also down about 0.2 percent in early trade.

The dollar was last up about 0.1 percent at 99.66 yen after rising as high as 99.79 yen on Tuesday, its strongest level since September 13. The dollar faces resistance at 100 yen, above which it has not traded since September 11.

The euro was nearly flat from U.S. levels, holding well above lows set last week, when it suffered a heavy selloff on Thursday after the European Central Bank stunned investors by unexpectedly cutting its main rate to a record-low 0.25 percent.

The common currency bought $1.3433, well above its two-month low of $1.3295 hit on Thursday, but still down nearly 3 percent from a two-year peak of $1.3833 set last month.

The dollar index .DXY rose about 0.1 percent to 81.168, edging back toward a two-month peak of 81.482 struck on Friday.

In commodities trading, gold was slightly down, while copper fell on the heightened speculation that the Fed will taper its stimulus.

U.S. crude for December delivery was slightly higher at $93 per barrel after snapping a two-day rally on Tuesday, while the benchmark three-month copper contract fell 0.7 percent to $7,119.85 a ton.

(Editing by Shri Navaratnam)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
Janna_a wrote:
Five Ghost Mock the Judge ,
in Hong Kong

During 1:19 pm to 2 pm of May 2, 2004, Police 53160 of Hong Knng gathered about 30 police officers to assault a woman in sick into very bruised, she was diagnosed by doctor that she was bruised 13 areas plus tissues hurt and others, Furthermore, the policemen threatened the 3 years and 4 years old children to crying very in huge panic. Than the policewoman knelt down on her lower back to hurt her back bone and the area with her knee. The policemen dragged her apart by holding 4 limbs to divide her, especially used her celling head set wires to tied up her left hand point finger and thumb, made her diable forever.

She is a single mother, live in helpless completely but with children.

Department of Justice persecuted her to assault 3 police offices, obstructed an officer to issue a fine ticket, went through a red light. They arranged 5 police officers as witnesses.

Five police officers mock the judge with lies in the court. The judge enjoy the liars and lies, she ignored the computer record, the actual length of the road, the testing method of the Crime Scene Investigation department of Hong Kong, to praise the police officer, Honest. The Drama is like five Ghost Mock the Judge.

The Judge enjoy liars and lies too much, she ignore all the physical evidence, set up this single mother and make the kids live as orphans finally.

Now, the victim’s hurt getting worse, worse, …. Who car heal her?

The Judges are happy to be mocked by Policemen, the bulliers are happy to bulliy the woman and children in Hong Kong, the DOJ is asking for money from the woman for her children’s food money daily happily from 2009, because the government staff lied in small claim court to cheat a court order.

Case number FLCC1459/2004, Fanling court

Nov 11, 2013 9:09pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.