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* Dollar down after hitting one-month high, eyes on Fed
* Asian stocks edge up as Seoul boosted by bank results
* Oil edges lower after Tuesday surge; gold down
By Elaine Lies
TOKYO, Nov 4 (Reuters) - The dollar lost ground on
Wednesday after hitting a one-month high against a basket of
currencies, while Asian stocks edged higher in muted trade
ahead of central bank meetings that kept investors wary.
Oil fell for the first time in three days after a 2 percent
surge on Tuesday and gold eased after hitting a record high,
but the afterglow helped boost resource-linked shares.
Most investors turned their attention to the U.S. Federal
Reserve, which ends its two-day meeting on Wednesday. While it
is expected to keep interest rates unchanged, some in the
market wonder if it might drop or alter its pledge to keep
rates low for an "extended period". []
"There is some speculation that they will soften their
reference to 'extended period' and I agree that they'll have to
do that soonish, yet I am not convinced they will do it at this
meeting," said Adam Carr, senior economist at ICAP.
"It's the ongoing risk though and there is clearly a very
vigorous debate occurring at the Fed," he added.
The dollar lost 0.1 percent to 76.336 against a basket of
currencies <.DXY> after climbing as far as 76.817, its highest
since early October, while the Aussie fell after Australia's
September retail sales were much weaker than expected.
[]
The greenback also lost 0.1 percent against the yen <JPY=>
Stock markets gained, although rises were muted as
investors awaited clues to the timing of eventual shifts in
central banks' policies.
Australian shares edged up 0.1 percent as mining shares
climbed, while Seoul stocks rose nearly 1 percent on the back
of robust quarterly earnings by Shinhan Financial Group <SHG.N>
and Korea Exchange Bank <004940.KS>.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 0.8 percent.
Japan's Nikkei was flat, with the market supported after
U.S. indicators such as the factory gauge from the Institute
for Supply Management pointed to a brisk pace of growth in the
fourth quarter. But a lack of direction prior to the central
bank meetings kept gains capped.
Japanese markets were closed on Tuesday for a holiday.
Fast Retailing <9983.T> advanced 3.1 percent after sales at
its Uniqlo casual-clothing chain in Japan surged 35.7 percent
in October from a year earlier, the biggest jump in over eight
years, as cost-conscious consumers snapped up jackets and other
winter items. []
EYES ON BANK MEETINGS
But overall share gains were limited in the wake of a mixed
performance by U.S. markets. The S&P 500 and Nasdaq rose
slightly on Tuesday as news of a major railroad acquisition
helped sentiment, but the Dow edged lower on caution as the
Federal Open Market Committee began a two-day meeting.
"The market's in a corrective phase, that's why there's not
a lot of conviction," said Don Williams, chief investment
officer at Platypus Asset Management. "Ultimately we're waiting
for the U.S. market to find its feet."
Markets are also holding their breath ahead of European
bank meetings. The European Central Bank and the Bank of
England are expected to keep rates unchanged on Thursday.
Gold eased slightly as investors took profits a day after
it hit record highs, though sentiment remained good on
bullion's growing status as a destination for diversifying
official reserves.
Spot gold <XAU=> was at $1,081.80 per ounce, down from New
York's notional close $1,084.50. On Tuesday, spot gold hit an
all-time high of $1,087.45. []
U.S. crude oil futures fell for the first time in three
days on Wednesday, heading towards $79 a barrel after industry
data showed a larger than expected build in U.S. gasoline
inventories and a surprise build in distillate supplies.
NYMEX crude for December delivery <CLc1> lost 30 cents to
$79.30 a barrel by 0210 GMT, after settling up $1.47 at $79.60
on Tuesday.
(Additional reporting by Anirban Nag in SYDNEY and Adrian
Bathgate in WELLINGTON; Editing by Jan Dahinten)
