* U.S. crude prices recover, up 0.5 pct to $94.5 a barrel
* Asian shares head for 3rd day of gains, Nikkei off 0.4 pct
* Yen comes off 4-year low versus euro
By Dominic Lau
TOKYO, Nov 26 Asian shares rose for the third
straight day on Tuesday, while oil prices regained some
semblance of stability after the previous session's slide as
traders questioned how quickly the Iranian nuclear accord could
turn into higher supplies.
The yen came off a 4-year trough against the euro, and
inched up against the dollar as traders repositioned after
several days of sharp moves.
Thailand was in the spotlight again as political instability
threatened to undermine the economy.
The baht bounced from a 11-week low on suspected
intervention by the Thai central bank, but intensifying
political uncertainty as anti-government protesters stepped up
their bid to oust Prime Minister Yingluck Shinawatra has
triggered heavy outflows of foreign money, keeping pressure on
The baht was flat at 31.97 per dollar, off its low of 32.09,
while Thai shares advanced 0.7 percent after hitting an
11-week closing low on Monday.
"The baht will weaken further depending on the
sustainability and intensity of the protests as they will hurt
the still fragile economy," said Saktiandi Supaat, head of FX
research for Maybank in Singapore.
Financial bookmakers expected major European indexes
to open steady to slightly softer.
U.S. crude prices added 0.5 percent to $94.5 a
barrel, recouping some of the previous session's 0.8 percent
decline following a weekend deal between the West and Tehran to
halt Iran's most sensitive nuclear activities in exchange for
some relief from sanctions.
Brent crude prices weakened 0.1 percent after ending
almost flat on Monday from a slide of as much as 2.7 percent.
"The interim six-month 'freeze' agreement just reached on
Iran's nuclear programme should not have any impact on oil
prices, aside from short-term sentiment, because core sanctions
on oil and banking have not been touched," Societe Generale said
in a note.
"We see a greater than 50 percent chance that a
comprehensive agreement will be successfully reached within six
"If and when that happens, it could take Iran three to nine
months to recover the one million barrels per day in production
lost since 2011."
MSCI's broadest index of Asia-Pacific shares outside Japan
advanced 0.3 percent, building on a 0.3 percent
rise in the previous session and breaking above its 50-day
Tokyo's Nikkei benchmark bucked the region and eased
0.4 percent on the back of the yen's modest recovery. The
benchmark climbed 1.5 percent on Monday to within sight of a
5-1/2 year peak reached in May.
Jakarta stocks shed 1 percent, while the Indonesian
rupiah dropped 0.4 percent to 11,785 to a dollar, its
lowest since March 2009, with traders citing dollar demand for
month-end debt payments and repatriation.
YEN BOUNCE OFF LOWS
The Japanese currency, which typically falls when share
prices rise, was up 0.2 percent at 101.495 yen to the dollar
and up 0.1 percent at 137.31 to the euro,
edging further away from a four-year trough of 137.98 touched on
Minutes of the Bank of Japan's Oct. 31 meeting showed some
board members said they saw economic growth and prices at risk
of declining, underscoring lingering pessimism within the board
on the outlook for meeting its inflation target.
Against a basket of major currencies, the dollar
slipped 0.1 percent.
"We remain bullish on the dollar heading into 2014 but
remain tactically cautious on establishing longs, with a number
of U.S. dollar pairs already trading at the high end of their
ranges and data unlikely to be consistent enough to support
expectations for an early tapering," analysts at BNP Paribas
wrote in a note.
Data showed on Monday that contracts to buy previously-owned
U.S. homes fell for a fifth straight month in October, hitting a
10-month low and adding to signs of cooling in the housing
U.S. stocks ended mixed overnight, with the Dow Jones
industrial average posting a slim gain to end at another
record high, while the S&P 500 eased 0.1 percent. S&P 500
E-mini futures edged up 0.1 percent in Asian trade.