* Asian shares subdued, Japan closed
* Dollar runs out of steam after overnight rally
* Kiwi dollar surges to 13-mth high on rising dairy prices
By Susan Fenton
HONG KONG, Sept 22 (Reuters) - Asian shares inched up on
Tuesday with softer commodity prices weighing on Australian
stocks, while the New Zealand dollar hit a 13-month high on
signs of a recovery in prices for the country's key dairy
exports.
The U.S. dollar ran out of steam, holding steady at around
92 yen <JPY=>, as short covering waned, after it jumped on
Monday to as high as 92.53 yen. However, analysts do not expect
the U.S. currency to slip much ahead of a U.S. Federal Reserve
monetary meeting beginning later Tuesday and a G20 summit this
week.
Volumes were capped as Japanese financial markets are
closed until Thursday for public holidays.
Malaysian and Indonesian markets were also closed for
public holidays.
In Australia, shares were little changed, dampened by an
overnight drop in commodities prices although gold <XAU=> edged
back up in Asian trade and oil <Clc1> recovered to just below
$70 a barrel.
South Korean shares climbed 1 percent, helped by gains in
tech stocks but telecom shares fell on worries that tariffs
will be slashed.
Treasury bond futures <KTBc1> fell after the Bank of Korea
said it was ready to use monetary policy to help calm rising
property prices. []
"We will take proper steps (against rising property prices)
including monetary policy if necessary, taking a look at
conditions of financial markets and the economy in the future,"
the central bank said in a draft version of a report to
parliament obtained by Reuters.
China shares were slightly higher but investors across the
region were subdued after the Dow Jones <> dipped 0.4
percent on Monday and demand concerns depressed commodities
prices.
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> edged up 0.7 percent and the Asian Development
Bank raised its growth forecasts for developing Asia to 3.9
percent for 2009, from 3.4 percent, and lifted its 2010
forecast to 6.4 percent from 6 percent.
KIWI SURGES
The U.S. Federal Reserve begins a two-day monetary policy
meeting on Tuesday and while it is likely to hold interest
rates, markets will be watching for any comments indicating the
Fed might wind back its super-accommodative policy stance given
improving economic data. That would be a boost for the dollar
if it does, analysts said.
Oil prices <Clc1> picked up after Monday's fall on renewed
concern about weakness in energy demand while commodities
prices were steady after the Reuters-Jefferies CRB index of
commodities <.CRB> tumbled 2.2 percent in New York trade, its
largest percentage drop in five weeks.
Dairy prices, in contrast are showing signs of rebounding,
pushing the New Zealand dollar <NZD=D4> to a 13-month high
above $0.7159, after the country's Fonterra group, the world's
largest dairy exporter, raised its estimated payout to farmer
shareholders for the 2009/10 season by 12 percent.
[]
Fonterra generates about 7 percent of New Zealand gross
domestic product.
The Kiwi, which has rallied more than 40 percent from a
six-year low plumbed in early March, was also supported by
current account data that showed New Zealand's second quarter
deficit at its lowest level in nearly five years.
[]
Australia lifted its production forecast for metals
including iron ore and copper, predicting that China will
remain a fervent buyer, but cut its export earnings estimate
because of lower prices.
(Additional reporting by Chang Tae-min and Cheon Jong-woo in
Seoul; Editing by Tomasz Janowski)
