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Dollar Steady; Asian Stock Rise Slows
Reuters
Monday, February 16, 2004; 3:31 AM
By Neil Fullick
SINGAPORE (Reuters) - Asian stocks hovered just below four-year highs on Monday in cautious trading after confidence in the outlook for the U.S. economy took a knock, while the dollar dangled just above multi-year lows against the euro and the yen.
European markets were expected to trade lower on Monday, although traders said dealing would be quiet because U.S. markets would be closed to mark the U.S. Presidents Day.
The dollar was supported by wariness among currency dealers of Bank of Japan intervention to help keep Japanese exporters competitive, but traders said they saw renewed dollar weakness to come.
"The general trend in the market is still for dollar selling," said Toru Umemoto, currency strategist at Morgan Stanley. "The only thing that's supporting the dollar is intervention."
The dollar fell within a whisker of record lows versus the euro on Friday on profit-taking amid rumors that the European Central Bank (ECB) had intervened.
"At this point, it was probably just a rumor but the market is getting nervous," said a trader at a Japanese securities firm.
Asian stocks stepped tentatively following reports showing the trade deficit of the United States, the world's biggest economy, had ballooned to a record in 2003 and consumer confidence withered in February.
Tokyo's key Nikkei average was steady, shaving just nine points to close at 10,548.72 as high-tech issues were hit by the currency jitters and as domestic earners found support.
Reflecting the opposing forces, Advantest Corp, Japan's leading maker of semiconductor testing equipment, fell 2.5 percent to 7,880 yen, while the country's biggest property developer, Mitsui Fudosan Co, gained 3.5 percent to 1,130 yen.
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