GLOBAL MARKETS-Nikkei leads Asian stocks lower; dollar dips

[Admin]

07-08-2013 11:20:58
GLOBAL MARKETS-Nikkei leads Asian stocks lower; dollar dips

* Asia ex-Japan stocks fall to four-week lows
* Nikkei down about 2 pct, hit by stronger yen
* Dollar plumbs six-week lows versus Japanese currency

By Ian Chua
SYDNEY, Aug 7 (Reuters) - Asian stocks fell to their lowest
in a month on Wednesday following a second day of losses on Wall
Street, led by a steep decline in the Nikkei as a firmer yen
took a toll on Japanese exporters.
MSCI's broadest index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> fell 0.7 percent to its lowest since July 11,
and Tokyo's Nikkei <.N225> slid to a one-week trough as the
dollar slumped to a six-week low against the yen.
Exporters such as Toyota Corp <7203.T> lost ground on
concerns the stronger yen would erode their dollar earnings when
repatriated. The Nikkei skidded as much as 2.6 percent to 14,020
in morning deals, before paring its fall to under 2 percent.
However, it may slide below support at 14,000 if the dollar
breaks below 97 yen, analysts said, adding the looming
settlement of some equity options were also creating volatility.
"Hedge funds like commodity trading advisors are shorting
through some of the European brokerages," said Norihiro Fujito,
senior investment strategist at Mitsubishi UFJ Morgan Stanley
Securities.
"They could also be selling index heavyweights to lower
futures prices before the Nikkei 225 options settlement on
Friday."

NO CLARITY
The soggy performance on Asian bourses came after the U.S.
S&P 500 index <.SPX> fell 0.6 percent, partly on uncertainty
about when the Federal Reserve will begin to scale back its
stimulus.
Investors keen for clarity on the timing of the Fed's plan
were left sorely disappointed after comments from two top
Federal Reserve officials shed no new light. [ID:nL1N0G719W]
This uncertainty coupled with thin trading conditions and a
lack of fresh impetus conspired to keep the greenback pinned
down against a basket of major currencies.
The dollar index <.DXY> held near a one-week low as the
greenback slid to 97.09 yen , a level last seen on June
25. The euro, while a touch softer on the day at $1.3296 ,
remained near a one-week high around $1.3323.
Commodities were also struggling in dull summer trade, with
gold extending losses into a third session as it fell to
three-week low of $1,273.14 an ounce.
Copper slipped 0.6 percent to $6,966 a tonne ,
erasing all the gains it made on Tuesday, while U.S. crude
was little changed near $105 a barrel.
There is little major economic data out of Asia on
Wednesday. The key focus is the Bank of England's inflation
report, in which it is expected to assure markets that it will
keep interest rates at rock-bottom levels for an extended
period. [ID:nL6N0G72BY]
On Thursday, the Bank of Japan will announce the outcome of
its two-day policy review, and is widely expected to press on
with its massive asset-buying program.
Recent data showed the world's third-biggest economy is
starting to stir thanks to the BOJ's unprecedented quantitative
easing push and government fiscal stimulus.

(Additional reporting by Ayai Tomisawa in Tokyo; Editing by
John Mair)
(([e-mail])([phone])(RM:
[e-mail]))