* Asian share markets soft on profit-taking, local issues
* Tokyo weighed down by plunge in Japan Airlines shares
* Oil holds below $79 a barrel; dollar at 2-month high
By Charlotte Cooper
TOKYO, Dec 30 (Reuters) - Asian share markets fell on
Wednesday as year-end trade dwindled, with profit-taking
pulling down stocks in Australia and bankruptcy worries about
Japan Airlines Corp <9205.T> weighing on the Nikkei, but the
dollar rose broadly.
In a reminder of the continued fallout from the global
economic crisis, shares of Japan Airlines <9205.T> tumbled to a
record low on growing investor worries that the struggling
carrier will be restructured in bankruptcy court as part of a
state bailout. []
Japan's Nikkei average <> slipped 0.3 percent after
briefly touching a four-month high, with JAL shares plunging 32
percent at one point to 60 yen.
Corporate debt problems also hit shares in South Kora,
where the benchmark index <> fell 0.3 percent. Losses were
led by companies in the Kumho Asiana Group and banks following
reports that flagship units of South Korea's ninth-biggest
business group could be put under creditor-led debt
restructuring. [] and []
Shares in Kumho Tire <072240.KS> and Kumho Industrial
<002990.KS> both plunged by their daily limit of 15 percent.
"Markets are under pressure on what would otherwise have
been a fairly calm day, as shares related to Kumho Asiana Group
are tanking amid deepening fears about the group's financial
health," said Song Kyung-keun, a market analyst at Dongbu
Securities.
"But from what I am hearing decisions are quickly being
made, and we will probably hear details about some sort of debt
restructuring plans soon, which is helping contain worries,"
Song said.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> fell 0.4 percent, edging further from its 2009
high set in November but still up more than 60 percent on the
year.
Many analysts expect stocks to rise further in 2010 as the
global economy continues to mend, but gains are likely to be at
a much slower pace.
Shares in Hong Kong <> fell 0.4 percent but bucking the
trend was the Shanghai stock market <>, which rose 0.6
percent.
Australian stocks rose to their highest in nearly 10 weeks
early but quickly retreated to slip 0.2 percent <>, with
profit-taking at the year-end.
U.S. stocks slipped overnight, breaking a six-day string of
gains as investors found little reason to buy stocks as the
year's end approached. Data showing a rise in consumer
confidence was offset by a housing report pointing to more
bumps in the road to a sustained economic recovery. []
DOLLAR GAINS
The dollar hit a two-month high at 92.26 yen <JPY=>,
keeping the firmer tone it has developed recently on shifting
sentiment about the outlook for U.S. interest rates.
The main question for the currency market going into 2010
is when the Federal Reserve will start to tighten policy.
Improved U.S. data in the past month has prompted many
market watchers to review their forecasts for when rates might
start to rise, lifting the dollar up from a 14-year low against
the yen and reviving its fortunes against other major
currencies.
"The market is shifting its focus to the recently emerged
theme of whether the Fed exit strategy will be sooner than
expected. And it will closely scrutinise upcoming U.S. economic
data," said Kazuyuki Takami, senior manager at the foreign
exchange trading department at Bank of Tokyo-Mitsubishi UFJ.
The euro fell 0.3 percent to $1.4307 <EUR=>.
Oil drifted further off $80 a barrel, weighed down by the
dollar's gains and doubts whether predictions for a weekly fall
in government-monitored U.S. crude stockpiles will come true,
after a private-sector report showed an unexpected rise. U.S.
crude for February delivery <CLc1> stood at $78.78 a barrel.
Gold prices <XAU=> steadied at $1,093.30 per ounce, after
snapping a three-session winning streak the day before when the
dollar's rise curbed bullion's appeal as a currency
alternative.
Spot gold had tumbled to a seven-week low of $1,074.10 an
ounce last week before the holiday break.
(Additional reporting by Jungyoun Park in Seoul, Elaine Lies
in Tokyo)
(Editing by Kim Coghill)
