* Euro extends decline toward $1.36 on Irish fiscal crisis
* Commodities broadly retreat as U.S. dollar rebounds
* Copper bulls still see the rally continuing later
* Asian stocks shed up to 0.9 percent on profit taking
By Kevin Plumberg
HONG KONG, Nov 12 (Reuters) - The euro extended losses on
Friday on fears Ireland may need a bailout just like Greece,
while commodities eased as the U.S. dollar rose, hitting the
pause button on a rally that pushed copper to record highs.
Traders slowed their selling of euros a bit after knocking
the currency down 4 cents in the past week, squaring up before
a statement about Ireland that may be issued by Britain and
France later in the day. []
Asian stock markets were mostly lower as traders took
profits on gains this week heading into the weekend.
The possibility of a bailout for Ireland has significantly
widened the difference of bond yields of high-risk European
countries over those of Germany, and overshadowed a Group of 20
leaders' summit in Seoul, where a breakthrough on resolving
global economic imbalances amid incongruent policies looked
unattainable. []
"The effects of euro zone peripheral bond concerns are
spreading through euro zone markets and hitting risk appetite
in the process. The euro is a clear casualty, having dropped
further against the U.S. dollar and versus other currencies,"
Mitul Kotecha, global head of currency strategy with Credit
Agricole CIB in Hong Kong.
The resurgence of fears about Europe's sovereign debt has
added to a shift back into dollars and out of riskier assets.
The euro was down 0.3 percent against the U.S. dollar at
$1.3625 <EUR=> after tumbling 0.9 percent on Thursday.
A close below the 200-week moving average of $1.3647 is a
grim omen for the euro and paves the way to the next obstacle
lower at $1.3558, the Sept. 30 low.
The dollar was down 0.2 percent against the yen, at 82.34
yen <JPY=>.
The dollar has been rebounding ever since the Federal
Reserve unveiled its $600 billion plan to buy Treasuries last
week Wednesday. The dollar index <.DXY>, which measures the
dollar's performance against a basket of other major
currencies, has risen 3.2 percent since then to a 5-week high.
Commodities traders had barely blinked at the dollar's
gains earlier in the week but prices succumbed to profit taking
on Friday.
Analysts, however, were still looking for bullish moves in
metals markets next year.
The rolling 30-day correlation between the U.S. dollar
index and the Reuters-Jefferies index of 19 commodities <.CRB>
has moved from -0.90 at the beginning of November to -0.22 on
Thursday.
Three-month copper traded on the London Metal Exchange was
down 1 percent to $8,732 a tonne <CMCU3> after hitting a record
high of $8,966 on Thursday.
Some analysts though still think copper prices could trek
up to as high as $11,500 next year.
U.S. crude futures fell 1 percent to $86.93 a barrel
<CLc1>, though were still up 6.7 percent so far in November,
having risen for the past two months.
Equities in Asia were mostly softer, with Hong Kong leading
other markets lower.
The Hang Seng index <> opened 1.2 percent lower, with
bank stocks weighing on the market.
Japan's Nikkei share average was down 0.9 percent <>
but was still poised to post a 6.3 percent rise on the week.
Some stocks such as Canon Inc <7751.T> that led the Nikkei
higher this week were the main drags on Friday, suggesting
profit taking was an element weighing on the market.
The MSCI index of Asia Pacific stocks outside Japan was
down 0.9 percent <.MIAPJ0000PUS>, with financials and telecom
sectors under the most selling pressure.
(Additional reporting by Reuters FX Analyst Krishna Kumar)
(Editing by Kim Coghill)
