(Repeats to widen distribution)
* "Strong dollar" pledge from US keeps dollar supported
* Tech sector drags on Asia stocks after Apple results
* Oil slides as dollar climbs
By Kevin Plumberg
HONG KONG, Oct 19 (Reuters) - The U.S. dollar edged higher
for a third consecutive day on Tuesday, driven by traders
continuing to take profits on gains in other currencies, while
weakness in the technology and commodity sectors limited gains
in Asian stocks.
Major European stocks opened weaker, with Britain's FTSE
100 <>, France's CAC 40 <> and Germany's DAX <>
all down 0.2 percent. The FTSEurofirst 300 <> fell 0.1
percent.
The dollar also found support after U.S. Treasury Secretary
Timothy Geithner affirmed the government's desire for a strong
currency for the first time since February, providing a reason
for dealers to take profits on other currencies' strength in
the run up to weekend meetings of G20 finance ministers.
[]
However, deep-seated concerns remained among global
policymakers that the Federal Reserve's path to quantitative
easing would keep the dollar weak and maintain sharp upward
pressure on the currencies of other economies, especially in
the emerging markets.
That means that despite the likelihood of the dollar
strengthening even further in the next few days, the popular
trade of selling dollars to buy emerging market equities and
commodities is still in play.
"The reasons for the dollar being weaker, principally that
move towards QE, are still very valid, so any pullbacks are not
going to be enormous," said Gregg Gibbs, currency strategist
with Royal Bank of Scotland in Sydney.
The euro was at $1.3900 <EUR=>, down 0.3 percent from late
in New York on Monday.
The euro has been unable to maintain a foothold above $1.40
in October, which may cause more frustrated traders to turn
tail and sell it off to $1.3775 over the next few days.
The U.S. dollar index, which measures performance against a
basket of six other major currencies, was up 0.4 percent
<.DXY>, though still not far from a 2010 low hit last Friday.
TECH WEAKNESS
Stock exchanges in Asia reflected mixed sentiment, with
gains in Japan and Hong Kong and declines in tech-heavy South
Korea and Taiwan.
Technology stocks were under pressure after Apple Inc
<AAPL.O> posted disappointing sales of its iPad tablet
computer, drawing a pointed response from the company's chief
executive Steve Jobs, who lashed out at competitors.
[]
Shares of Samsung Electronics <005930.KS>, the world's top
memory chipmaker, fell 1.3 percent, underperforming the broader
South Korean market.
Japan's Nikkei share average closed 0.4 percent higher
<>, extending a gain since September to 6.9 percent, which
was below the 9.7 percent returns from the U.S. S&P 500 index
<.SPX> but above the 3.1 percent from the FTSEurofirst 300
index <>.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> slipped 0.3 percent, with weakness in the tech
and materials sectors overcoming gains in the utilities and
energy segments.
With the dollar at bay, gold also was under wraps, holding
at $1,366.30 an ounce <XAU=>, well below the all-time high of
$1,387.10 an ounce hit last Thursday.
Gold is still in a bullish trend but in the near term risks
a profit-taking driven pullback to $1,361 an ounce.
"Unless the Fed announces quantitative easing to a huge
extent, gold will retrace," said Zhu Yilin, general manager of
the research and development department of Jingyi Futures in
Shanghai.
"It's all about buying the anticipation. Once the result is
out, it's time to close positions."
Oil prices slid as the dollar made a comeback and
unravelled currency-related trades. U.S. crude for November
<CLc1> was down 0.3 percent to $82.80 a barrel, having been
unable to clear $84 after three tries in October.
(Additional reporting by Rujun Shen in SINGAPORE, Charlotte
Cooper in TOKYO, Reuters FX Analyst Krishna Kumar in SYDNEY and
Reuters Market Analyst Wang Tao in SINGAPORE; Editing by Alex
Richardson)
