AS: Asian shares slip as dollar sits at 15-year lows
HONG KONG, Oct 12, 2010 (AFP) - Asian shares were lower Tuesday as traders reacted to a weak lead from Wall Street, while the dollar languished at 15-year lows against the yen on expectations of US measures to boost the economy.
The strong yen continued to pressure Japanese stocks as traders have been selling the greenback ahead of likely US pump-priming, which would effectively flood the economy with dollars.
Tokyo's Nikkei slumped 2.09 percent, or 200.24 points, to end at 9,388.64 as the yen broke through 82 to the dollar again after hitting 81.39 on Monday when Japanese markets were closed for a public holiday.
The dollar stood at 81.93 yen in morning trade in Tokyo, from its 82.05 New York close.
However the dollar has had some support from Japanese authorities' threat to step into the currency markets for a second time to halt the yen's rise, which hurts the nation's key export market.
Japanese Finance Minister Yoshihiko Noda, fresh from a weekend meeting with fellow finance chiefs of the Group of Seven nations, said: "I explained to the G7 that Japan's previous intervention was aimed at curbing excessive appreciation in the yen that could hurt the Japanese economy.
"G7 members reconfirmed that volatile foreign exchange market moves have a negative impact on the economy and financial markets," Noda said.
Japan stepped into the currency markets on September 15 for the first time since 2004 to weaken the yen and help safeguard a fragile economic recovery.
Masayoshi Yano, senior market analyst at Meiwa Securities, told Dow Jones Newswires: "If the government does not carry out intervention after the dollar falls (again) below 82 yen, the dollar may break below 80."
Regional markets were given little encouragement by Wall Street, where the Dow ended flat as dealers began considering what type of monetary easing measures the US Federal Reserve would take at its policy meeting next month.
Sydney plunged 1.69 percent, or 79.3 points, to close at 4,618.2 and Hong Kong slipped 0.52 by the break.
The losses however came a day after the region chalked up healthy gains. Mark Smith, economist at ANZ bank in Wellington, said results from Intel, JP Morgan and General Electric due out this week in the United States were expected to be upbeat.
But he said "the market is more focused on issues raised by currency (mis)alignments and what shape and form the further (quantitative easing) in early November will take."
Shanghai shares rose 1.23 percent, or 34.47 points, to 2,841.41. On oil markets New York's main contract, light sweet crude for delivery in November, shed 78 cents to 81.43 dollars a barrel in the afternoon.
Brent North Sea crude for November delivery fell 71 cents to 83.01 dollars a barrel.
Gold closed at 1,344.50-1,345.50 US dollars an ounce in Hong Kong, down from Monday's close of 1,348.00-1,349.00 dollars.
