European shares were seen rising at the open on Monday.
Financial spreadbetter IG expected Britain’s FTSE 100 to
open 0.3 percent higher, Germany’s DAX to open 0.7
percent higher, and France’s CAC 40 to gain 0.5 percent.

The dollar fell to as low as 102.00 yen earlier on Monday,
pulling away from Friday’s high of 103.32 yen, the greenback’s
highest level versus the yen since October 2008.

The dollar last stood at 102.68 yen, down 0.5 percent on
the day, having pared some of its earlier losses.

Comments by Japanese Economics Minister Akira Amari over the
weekend spurred buy backs of the yen, market players said.

“People say the excessively strong yen has corrected quite a
bit. If the yen continues to weaken steadily from here, negative
effects on people’s lives will emerge,” Amari told a Sunday talk
show.

Still, some analysts played down Amari’s remarks, saying the
market’s main focus is the outlook for U.S. monetary policy, as
well as a recent trend toward a broadly higher dollar.

“The moves are due to the dollar’s strength rather than the
yen’s weakness, so there’s more focus on what the Fed does or
says than statements from Japanese politicians,” said Yoshio
Takahashi, currency strategist at Barclays in Tokyo.

Asian stock markets rose broadly, boosted by U.S. equities
hitting record closing highs on Friday as encouraging economic
data prompted investors to buy into growth companies.

In the stock market, MSCI’s broadest index of Asia-Pacific
shares outside Japan gained 0.9 percent.
Australian shares rose 0.6 percent. In China,
the Shanghai Composite Index rose 0.9 percent.

Thai equities rose 0.7 percent, staying firm even
after data showed Thailand’s economy shrank 2.2 percent in the
first three months of 2013 from the previous quarter.

Japan’s Nikkei share average touched its highest intraday
level since December 2007, and was last up 1.4 percent,
with sentiment supported after the Japanese government raised
its assessment of the economy in May.

The dollar index, which measures the dollar’s value against
a basket of currencies, stood at 84.091. On Friday, the
dollar index had risen to 84.371, its strongest level since July
2010.

The dollar has been buoyed by speculation that the Fed might
taper its $85 billion in monthly bond purchases later this year.

Such chatter had increased after John Williams, president of
the Federal Reserve Bank of San Francisco, said on Thursday the
Fed could begin easing back on the monetary gas pedal this
summer and end bond buying late this year.

Gold tumbled 1.5 percent to a one-month low of $1,338.95
earlier on Monday, pressured by expectations the Fed
could soon halt its asset buying programme. Gold last fetched
$1,345.41.

Brent crude held steady at $104.60 a barrel.

The dollar fell to as low as 102.00 yen earlier on Monday, pulling away from Friday’s high of 103.32 yen, the greenback’s highest level versus the yen since October 2008.

The dollar later pared some of its losses, and last stood at 102.69 yen, down 0.5 percent on the day.

Comments by Japanese Economics Minister Akira Amari over the weekend spurred buy backs of the yen, market players said.

“People say the excessively strong yen has corrected quite a bit. If the yen continues to weaken steadily from here, negative effects on people’s lives will emerge,” Economics Minister Akira Amari told a Sunday talk show.

The dollar, which gained last week on speculation that the U.S. Federal Reserve could soon begin to rein in its bond-buying programme, remained within sight of a near three-year high set on Friday versus a basket of currencies.

“It was on the back of those Amari comments … especially after the big rally in dollar/yen on Friday. But thin liquidity is exacerbating the moves,” said Sue Trinh, senior currency strategist at RBC in Hong Kong, referring to the dollar’s earlier drop against the yen.

Asian stock markets rose broadly, boosted by U.S. equities hitting record closing highs on Friday as encouraging economic data prompted investors to buy into growth companies.

In the stock market, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.1 percent, with Australian shares rising about 1 percent.

Thai equities rose 0.6 percent, staying firm even after data showed Thailand’s economy shrank 2.2 percent in the first three months of 2013 from the previous quarter.

Japan’s Nikkei share average touched its highest intraday level since December 2007, and was last up 1.6 percent.

“Strength in the U.S. market and signs of a recovery in the U.S. economy are serving as a tailwind to the Nikkei’s further gains. It’s promising that the yen is staying below 100 yen to the dollar,” said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo.

The dollar index, which measures the dollar’s value against a basket of currencies, stood at 84.112. On Friday, the dollar index had risen to 84.371, its strongest level since July 2010.

The dollar has been buoyed by speculation that the Fed might taper its $85 billion in monthly bond purchases later this year.

Such chatter had increased after John Williams, president of the Federal Reserve Bank of San Francisco, said on Thursday the Fed could begin easing back on the monetary gas pedal this summer and end bond buying late this year.

Gold tumbled 1.5 percent to a one-month low of $1,338.95 earlier on Monday, pressured by expectations the Fed could soon halt its asset buying programme. Gold last fetched $1,344.51.

Brent crude edged up 0.1 percent to $104.70 a barrel.

(Additional reporting by Ian Chua in Sydney and Ayai Tomisawa in Tokyo; Editing by Eric Meijer)

“People say the excessively strong yen has corrected quite a bit. If the yen continues to weaken steadily from here, negative effects on people’s lives will emerge,” Economics Minister Akira Amari told a Sunday talk show – sparking some buying back of the yen in a thin market.

The dollar, which gained last week on speculation that the U.S. Federal Reserve could soon begin to rein in its bond-buying program, remained within sight of a near three-year high set on Friday versus an index of currencies.

Some Asian stock markets edged higher, boosted by U.S. equities hitting record closing highs on Friday as encouraging economic data prompted investors to buy into growth companies.

U.S. consumer sentiment rose to its strongest in nearly six years in early May, while a gauge of future economic activity rose in April to a near five-year high.

On Friday, the upbeat indicators had lent support to the dollar, which climbed last week on speculation that the Fed might taper its $85 billion in monthly bond purchases later this year.

Such chatter had increased after John Williams, president of the Federal Reserve Bank of San Francisco, said on Thursday the Fed could begin easing back on the monetary gas pedal this summer and end bond buying late this year.

The dollar fell to as low as 102.00 yen earlier on Monday. The greenback later pared its losses, and last fetched 102.86 yen, down 0.4 percent on the day. The dollar had risen to 103.32 yen on Friday, its highest level versus the Japanese currency since October 2008.

“It was on the back of those Amari comments … especially after the big rally in dollar/yen on Friday. But thin liquidity is exacerbating the moves,” said Sue Trinh, senior currency strategist at RBC in Hong Kong.

The dollar index, which measures the dollar’s value against a basket of currencies .DXY, stood at 84.204, not very far from Friday’s high of 84.371, its strongest level since July 2010.

In the stock market, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.3 percent, with Australian shares rising 0.9 percent , while South Korean shares were flat .KS11.

Japan’s Nikkei share average touched its highest intraday level since December 2007, and was last up 1 percent .N225

Gold tumbled 1.5 percent to a one-month low of $1,338.95, pressured by expectations the Fed could soon halt its asset buying program.

Brent crude rose 0.1 percent to $104.73 a barrel.

(Additional reporting by Ian Chua in Sydney; Editing by Eric Meijer)

European stock index futures pointed to a lower open on
Friday. At 0604 GMT, futures for Euro STOXX 50,
Germany’s DAX and France’s CAC were 0.1 to 0.4
percent lower.

U.S. equities had sagged on Thursday after John Williams,
president of the Federal Reserve Bank of San Francisco, said the
Fed could begin easing back on the monetary gas pedal this
summer and end bond buying late this year.

Although Williams does not have a vote in the Fed’s
policy-setting panel this year, his comments had weighed on
shares, since the Fed’s purchases of $85 billion a month in
bonds has been a significant driver of the rally in equities
that has taken U.S. stock indexes to record highs this year.

His comments helped give a boost to the dollar. The dollar
index, which measures the dollar’s value against a basket of
currencies, rose 0.4 percent to 83.942, nearing a
10-month high of 84.094 set earlier this week.

The dollar’s strength will probably become more prominent
later this year, said Sim Moh Siong, FX strategist for Bank of
Singapore.

“What we’re seeing right now is more of a rehearsal. It’s
likely to pan out on a more sustained basis by late this year,”
he said.

“Eventually I think the broad tone of data should show that
the U.S. economy is holding up much better than the rest of the
world and that would lend more durable support for the U.S.
dollar,” he said.

The dollar is likely to gain support particularly against
other low-yielding currencies such as the euro, the yen,
sterling and the Swiss franc, he added.

In the stock market, MSCI’s broadest index of Asia-Pacific
shares outside Japan fell 0.3 percent to 479.57,
inching away from last week’s high of 491.17, its strongest
level since July 2011.

Some individual Asian stock markets pushed higher, however.
Mainland Chinese shares rose 1.1 percent, while
Japan’s Nikkei share average gained 0.7 percent despite
some caution over its steep recent gains.

The Nikkei has jumped more than 45 percent this year, helped
by the Bank of Japan’s aggressive monetary stimulus and the
yen’s weakness, which is positive for Japanese exporters.

Singapore’s Straits Time Index touched its highest
level since January 2008 earlier on Friday. The main index in
the Philippines fell 0.7 percent, down for a second
straight day after having set a record closing high on
Wednesday.

Markets in South Korea and Hong Kong were closed on Friday
for public holidays.

U.S. crude futures held steady at $95.20 a barrel.
Spot gold stood at about $1,385 an ounce, staying above a
four-week low near $1,369 set on Thursday.

U.S. equities had sagged on Thursday after John Williams,
president of the Federal Reserve Bank of San Francisco, said the
Fed could begin easing back on the monetary gas pedal this
summer and end bond buying late this year.

Although Williams does not have a vote in the Fed’s
policy-setting panel this year, his comments had weighed on
shares, since the Fed’s purchases of $85 billion a month in
bonds has been a significant driver of the rally in equities
that has taken U.S. stock indexes to record highs this year.

The dollar index, which measures the dollar’s value against
a basket of currencies, rose 0.4 percent to 83.927,
nearing a 10-month high of 84.094 set earlier this week.

The dollar’s strength will probably become more prominent
later this year, said Sim Moh Siong, FX strategist for Bank of
Singapore.

“What we’re seeing right now is more of a rehearsal. It’s
likely to pan out on a more sustained basis by late this year,”
he said.

“Eventually I think the broad tone of data should show that
the U.S. economy is holding up much better than the rest of the
world and that would lend more durable support for the U.S.
dollar,” he said.

The dollar is likely to gain support particularly against
other low-yielding currencies such as the euro, the yen,
sterling and the Swiss franc, he added.

In the stock market, MSCI’s broadest index of Asia-Pacific
shares outside Japan fell 0.3 percent to 479.75,
inching away from last week’s high of 491.17, its strongest
level since July 2011.

Japan’s Nikkei share average erased its earlier losses and
edged up 0.3 percent, holding near a 5-1/2-year intraday
high set on Thursday. The main index in the Philippines
fell 0.7 percent, down for a second straight day after having
set a record closing high on Wednesday.

Markets in South Korea and Hong Kong were closed on Friday
for public holidays.

Spot gold eased to about $1,380 an ounce. Gold had
hit a four-week low near $1,369 on Thursday as renewed
liquidation in gold ETFs and the recent drop below the $1,400
per ounce level hurt sentiment.

U.S. crude futures slipped to about $95 a barrel.

Economic data the previous day had stirred some negative
sentiment about the U.S. economy.

Factory activity contracted in the mid-Atlantic region in
May, ground-breaking for new homes tumbled in April and new
claims for jobless benefits spiked last week, according to three
separate reports.

Coupled with soft underlying inflation, the data suggested
weak demand as the U.S. economy entered the second quarter.

U.S. equities sagged on Thursday after John Williams, president of the Federal Reserve Bank of San Francisco, said the Fed could begin easing back on the monetary gas pedal this summer and end bond buying late this year.

Although Williams does not have a vote in the Fed’s policy-setting panel this year, his comments spooked investors, since the Fed’s purchases of $85 billion a month in bonds has been significant driver of the rally in equities that has taken U.S. stock indexes to record highs this year.

The dollar gained on Williams’s comments. Against a basket of currencies, the dollar index last stood at 83.766, up from Thursday’s low of 83.448 and holding within sight of a 10-month peak of 84.094 set earlier this week.

“At the previous policy meeting, the Fed essentially said whether it will reduce or expand its bond buying is 50-50. But markets are now suspicious that Bernanke may signal it’s something like 55-45 when he testifies in the congress on May 22,” said Minori Uchida, chief FX analyst at the Bank of Tokyo-Mitsubishi UFJ in Tokyo.

Federal Reserve Chairman Ben Bernanke is due to testify on the economy before the congressional Joint Economic Committee on May 22.

In equities, Japan’s benchmark Nikkei share average eased 0.2 percent, after opening down 0.7 percent as Japanese shares ran into some profit-taking after their recent rally.

The initial retreat in Tokyo shares came even as Japanese core machinery orders surged a much bigger-than-expected 14.2 percent in March. Taking some of the shine off that data, which is known for being volatile, was the fact that core machinery orders were expected to fall 1.5 percent in April-June quarter-on-quarter.

“The forecasts for April-June underlined companies’ cautiousness about capital spending due to uncertainty over the global economic outlook, including weak data from China and patchy indicators from the United States,” said Shuichi Obata, senior economist for Nomura Securities in Tokyo.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed at 480.79, and down from last week’s peak of 491.17, its highest level since July 2011.

U.S. crude futures slipped to about $95 a barrel after disappointing U.S. economic data revived worries over demand in the world’s biggest oil consumer.

Factory activity contracted in the mid-Atlantic region in May, ground-breaking for new homes tumbled in April and new claims for jobless benefits spiked last week, according to three separate reports.

Coupled with soft underlying inflation, the data suggested weak demand as the U.S. economy entered the second quarter.

Markets in Hong Kong and South Korea are closed on Friday for holidays.

(Additional reporting by Hideyuki Sano in Tokyo; Editing by Eric Meijer)

U.S. equities sagged on Thursday after John Williams, president of the Federal Reserve Bank of San Francisco, said the Fed could begin easing back on the monetary gas pedal this summer and end bond buying late this year.

Although Williams does not have a vote in the Fed’s policy-setting panel this year, his comments spooked investors, since the Fed’s purchases of $85 billion a month in bonds has been significant driver of the rally in equities that has taken U.S. stock indexes to record highs this year.

The dollar gained on Williams’s comments. Against a basket of currencies, the dollar index last stood at 83.766 .DXY, up from Thursday’s low of 83.448 and holding within sight of a 10-month peak of 84.094 set earlier this week.

“At the previous policy meeting, the Fed essentially said whether it will reduce or expand its bond buying is 50-50. But markets are now suspicious that Bernanke may signal it’s something like 55-45 when he testifies in the congress on May 22,” said Minori Uchida, chief FX analyst at the Bank of Tokyo-Mitsubishi UFJ in Tokyo.

Federal Reserve Chairman Ben Bernanke is due to testify on the economy before the congressional Joint Economic Committee on May 22.

In equities, Japan’s benchmark Nikkei share average eased 0.2 percent .N225, after opening down 0.7 percent as Japanese shares ran into some profit-taking after their recent rally.

The initial retreat in Tokyo shares came even as Japanese core machinery orders surged a much bigger-than-expected 14.2 percent in March. Taking some of the shine off that data, which is known for being volatile, was the fact that core machinery orders were expected to fall 1.5 percent in April-June quarter-on-quarter.

“The forecasts for April-June underlined companies’ cautiousness about capital spending due to uncertainty over the global economic outlook, including weak data from China and patchy indicators from the United States,” said Shuichi Obata, senior economist for Nomura Securities in Tokyo.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed at 480.79, and down from last week’s peak of 491.17, its highest level since July 2011.

U.S. crude futures slipped to about $95 a barrel after disappointing U.S. economic data revived worries over demand in the world’s biggest oil consumer.

Factory activity contracted in the mid-Atlantic region in May, ground-breaking for new homes tumbled in April and new claims for jobless benefits spiked last week, according to three separate reports.

Coupled with soft underlying inflation, the data suggested weak demand as the U.S. economy entered the second quarter.

Markets in Hong Kong and South Korea are closed on Friday for holidays.

(Additional reporting by Hideyuki Sano in Tokyo; Editing by Eric Meijer)

The dollar eased 0.1 percent to 102.22 yen, but still
remained near Tuesday’s high of around 102.40 yen, the
greenback’s strongest level against the Japanese currency since
October 2008.

“Right now the market is dominated by dollar strength, and I
think that will continue for a while,” said Kyosuke Suzuki,
director of FX at Societe Generale in Tokyo.

European stock futures pointed to a mixed open on Wednesday.
At 0604 GMT, futures for Euro STOXX 50 were flat, UK’s
FTSE 100 futures rose 0.3 percent, Germany’s DAX futures
gained 0.1 percent and France’s CAC futures were
down 0.1 percent.

In Asia, Japan’s Nikkei share average climbed above the
psychologically key 15,000 threshold for the first time since
January 2008, getting a boost from the weak yen, which helps
Japanese exporters.

Analysts said strength in overseas shares was causing funds
to flow into the Japanese market despite the fast pace of gains,
although some investors were also taking profits on sectors
sensitive to rising long-term interest rates.

“The sectors which rose on the back of the government’s
reflationary policy are prone to profit-taking as these sectors
greatly outperformed earlier,” said Hikaru Sato, a senior
technical analyst at Daiwa Securities.

The Nikkei jumped 2.3 percent to 15,096.03. The
benchmark Japanese stock index rose to 15,108.83 earlier, its
highest level since January 2008.

Real estate shares and financials underperformed, however,
with Mitsui Fudosan Co shedding 2 percent.

The 10-year Japanese government bond (JGB) yield
touched a peak of 0.920 percent, its highest
level in more than a year. The 10-year yield later came off that
high as JGBs pared their losses due to bargain hunting by
investors.

MSCI’s broadest index of Asia-Pacific shares outside Japan
edged up 0.2 percent to 482.34. Australian
shares fell 0.5 percent, while South Korean shares
inched up 0.1 percent.

Some market players expect investor appetite for risk to
remain fairly solid given recent signs of an improving U.S.
economy.

“A combination of further improvement of economic
performance and low inflation in the U.S. should keep risk
appetite buoyant and support the USD on higher yields,” said
Anthony Lam, strategist at Credit Agricole in a note.

Earlier on Wednesday, the U.S. 10-year Treasury yield
touched a two-month high of 1.985 percent.

Data this week showed U.S. retail sales rose unexpectedly in
April, underpinning the dollar which could gain further if
upcoming U.S. economic data also points to a recovery.

U.S. import prices fell in April due to a drop in oil costs,
a positive sign for household finances that also indicated
benign inflation pressures.

The dollar has rallied broadly over the past couple of weeks
as better-than-expected jobs data coupled with a recent decline
in the number of Americans filing new claims for jobless aid,
pointed to a strengthening labour market.

The dollar index, which measures the greenback’s value
against a basket of currencies, last stood at 83.615,
staying near Tuesday’s 10-month high of 83.687, the greenback’s
highest level since last July.

In commodity markets, spot gold eased 0.1 percent to
$1,424.19 an ounce. Gold is still down for the week, as economic
optimism and record high U.S. equities lessened its appeal as a
safe haven.

U.S. crude oil futures gained 0.1 percent to $94.27 a
barrel and Brent held steady at $102.63.

U.S. stocks rallied to record highs on
Tuesday, continuing an ascent driven by the Federal Reserve’s
easy monetary policy, though investors’ focus has turned to when
the Fed may start to rein in its bond-purchase programme.

The yen hovered near a 4-1/2-year low versus the dollar set
on Tuesday, with yen bears remaining largely in control since
the Japanese currency’s slide accelerated after the Bank of
Japan’s April 4 launch of drastic monetary stimulus.

The dollar eased 0.2 percent to 102.21 yen, but was
not far from Tuesday’s high of around 102.40 yen, the
greenback’s strongest level since October 2008.

Japan’s Nikkei share average climbed above the
psychologically key 15,000 threshold for the first time since
January 2008, getting a boost from the weak yen, which helps
Japanese exporters.

Analysts said strength in overseas shares was causing funds
to flow into the Japanese market despite the fast pace of gains,
although some investors were also taking profits on sectors
sensitive to rising long-term interest rates.

“The sectors which rose on the back of the government’s
reflationary policy are prone to profit-taking as these sectors
greatly outperformed earlier,” said Hikaru Sato, a senior
technical analyst at Daiwa Securities.

The Nikkei jumped 2.3 percent to 15,096.97.

Real estate shares and financials underperformed, however,
with Mitsui Fudosan Co shedding 3.5 percent.

The 10-year cash JGB yield touched a peak of
0.920 percent, its highest level in more than a year, with JGBs
hit by the yen’s persistent weakness and strength in Tokyo
shares.

MSCI’s broadest index of Asia-Pacific shares outside Japan
eased 0.2 percent to 480.30, while South Korean
shares shed 0.2 percent.

Australian shares fell 0.8 percent as miners
deepened their losses on weaker metal prices, with Rio Tinto Ltd
falling 3.0 percent.

Some market players expect investor appetite for risk to
remain fairly solid given recent signs of an improving U.S.
economy.

“A combination of further improvement of economic
performance and low inflation in the U.S. should keep risk
appetite buoyant and support the USD on higher yields,” said
Anthony Lam, strategist at Credit Agricole in a note.

Data this week showed U.S. retail sales rose unexpectedly in
April, underpinning the dollar which could gain further if
upcoming U.S. economic data also points to a recovery.

U.S. import prices fell in April due to a drop in oil costs,
a positive sign for household finances that also indicated
benign inflation pressures.

The dollar has rallied broadly over the past couple of weeks
as better-than-expected jobs data coupled with a recent decline
in the number of Americans filing new claims for jobless aid,
pointed to a strengthening labour market.

The dollar index, which measures the greenback’s value
against a basket of currencies, last stood at 83.608,
staying near Tuesday’s 10-month high of 83.687, the greenback’s
highest level since last July.

In commodity markets, spot gold held steady at
$1,425.86 an ounce. Gold is still down for the week, as economic
optimism and record high U.S. equities lessened its appeal as a
safe haven.

U.S. crude oil futures gained 0.2 percent to $94.35 a
barrel and Brent rose 0.1 percent to $102.70.

U.S. stocks rallied to record highs on
Tuesday, continuing an ascent driven by the Federal Reserve’s
easy monetary policy, though investors’ focus has turned to when
the Fed may start to rein in its bond-purchase programme.

The yen hovered near a 4-1/2 year low versus the dollar set on Tuesday, with yen bears remaining largely in control since the Japanese currency’s slide accelerated after Bank of Japan’s April 4 launch of drastic monetary stimulus.

The dollar eased 0.2 percent to 102.21 yen, but was not far from Tuesday’s high of roughly around 102.40 yen, the greenback’s strongest level since October 2008.

Japan’s Nikkei share average climbed above the psychologically key 15,000 threshold for the first time since January 2008, getting a boost from the weak yen, which helps Japanese exporters.

“The Nikkei has gained about 1,000 points this month, so there still is caution over the fast pace of rises in a short period of time,” said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo.

“But strong overseas markets indicate that there is a high chance that the money will flow into the Japanese market,” Miura said.

The Nikkei rose 2.1 percent to 15,068.25.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 percent to 481.10. South Korean equities held steady .KS11, while Australian shares rose 0.3 percent.

Some market players expect appetite for risk to remain fairly solid given recent signs of an improving U.S. economy.

“A combination of further improvement of economic performance and low inflation in the U.S. should keep risk appetite buoyant and support the USD on higher yields,” said Anthony Lam, strategist at Credit Agricole in a note.

Data this week showed U.S. retail sales rose unexpectedly in April, underpinning the dollar which could gain further if upcoming U.S. economic data also points to a recovery.

U.S. import prices fell in April due to a drop in oil costs, a positive sign for household finances that also indicated benign inflation pressures.

U.S. stocks rallied to record highs on Tuesday, continuing an ascent driven by the Federal Reserve’s easy monetary policy, though investors’ focus has turned to when the Fed may start to rein in its bond-purchase programme.

(Additional reporting by Ayai Tomisawa in Tokyo; Editing Shri Navaratnam)