* Gold off after hitting new all-time high
* Asian stocks rebound with modest gains
* Dollar resumes stubborn downtrend
(Repeats to more subscribers)
By Yoo Choonsik and Kevin Plumberg
SINGAPORE/HONG KONG, Nov 18 (Reuters) - Gold fell on profit
taking on Wednesday after reaching a record high on economic
uncertainties and the downtrend in the dollar, while Asian
stocks edged higher as hunger for risk stayed high as the year
end approached.
Major European stock futures <STXEc1> indicated a higher
open, ahead of meeting minutes from the Bank of England and
U.S. inflation data, while U.S. stock futures <SPc1> were
little changed.
Spot gold <XAU=> rose as high as $1,143.95 per ounce in
early Asia trade before falling back below $1,140. The yellow
metal has risen about 30 percent so far this year, fueled by
dollar weakness and investors' search for assets which could be
used to hedge against inflation.
Expectations that the U.S. interest rates will stay at
exceptionally low levels for some time have weighed down the
dollar and encouraged global investors to look for better
returns from riskier trades, such as emerging markets,
currencies, commodities and stocks.
"It's going to be hard for the dollar to gain further,
since it looks like that the U.S. will keep its low interest
rate policy for a while," said Tomohiro Nishida, treasury
department manager at Chuo Mitsui Trust and Banking Company in
Tokyo.
U.S. President Barack Obama meets Chinese Premier Wen
Jiabao later in the day on his last day of a visit to China,
although his much anticipated meeting with President Hu Jintao
on Tuesday failed to produce any visible impact on the markets.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 0.3 percent, after touching the highest
since July 31, 2008 on Tuesday.
Telecom stocks were the big gainer, up 1.1 percent, while
technology and materials sectors also gained.
South Korea's KOSPI was up 1.1 percent at the highest close
in three weeks, led by shares of Hyundai Mobis Co <012330.KS>
after the company's affiliate Hyundai Motor said it had to
dispose of a stake in the car parts maker to meet anti-trust
laws.
However, Japan's Nikkei average <> bucked the regional
trend, shedding 0.6 percent to end at a 6-week closing low on
fears that banks and property firms would dive in to tap equity
markets for fresh capital in coming days.
Japan Airlines Corp's <9205.T> stock tumbled nearly 4
percent to its lowest level since the firm's 2002 re-listing
after the nation's transport minister declined to rule out a
court-led bankruptcy for the troubled airline. []
"Investor sentiment is pretty bad right now, it seems there
is no end to negative factors," said Noritsugu Hirakawa, a
strategist at Okasan Securities. "We have the strong yen,
fund-raising worries, political uncertainty, concern about
banks, and JAL."
The ICE Futures U.S. dollar index <.DXY> edged down 0.1
percent to 75.278, after striking a 15-month low of 74.679 on
Monday.
The euro rose 0.2 percent to $1.4901 <EUR=>, more than a
cent below its 2009 high above $1.5000.
U.S. crude futures <CLc1> rose 53 cents to $79.67 a barrel,
after settling up 24 cents on Tuesday, after an industry group
reported a larger-than-expected drawdown in U.S. crude stocks
last week.
(Additional reporting by Kaori Kaneko and Elaine Lies in
TOKYO; Editing by Kim Coghill)
