* Asia shares falter, led down by resources/commodities
firms
* U.S. dollar firmer; NZ currency dives after jobless
numbers
* Markets focused on ECB, BOE meetings on Thursday
* Toyota's woes boost carmakers Hyundai, Kia and Honda
By Dean Yates
SINGAPORE, Feb 4 (Reuters) - Lingering concerns about the
global economy and a host of negative local factors pushed
Asian stocks lower on Thursday, with Toyota hitting a 10-month
low on investor concerns over its massive vehicle recall.
European stocks <> were expected to shrug off
weakness in Asian and U.S. markets, with investors keenly
awaiting rate decisions from the European Central Bank and the
Bank of England later in the day.
U.S. stock futures <SPc1> were little changed after modest
losses on Wall Street overnight, where stocks slipped on a
disappointing sales outlook from top global drugmaker Pfizer
<PFE.N> and on fears of increasing U.S. government regulation
in a host of sectors from banking to healthcare that could
crimp profits. []
Shares in Hong Kong <> fell 1.6 percent, with sentiment
also affected by a tightening of monetary conditions in China
as well as concern over tensions between Washington and
Beijing. Shanghai shares <> also fell in morning trade
before clawing back early losses.
In the latest sign of trouble, Chinese officials reacted
coolly on Thursday to a vow by U.S. President Barack Obama to
get much tougher with China over the yuan's exchange rate,
which Washington believes is artificially undervalued.
[]
Dariusz Kowalczyk, chief investment strategist at SJS
Markets in Hong Kong, said both countries had too much at stake
to let disputes over the yuan, trade and Taiwan derail ties.
"When it comes to market reaction, I doubt it will be major
as long as the tension is contained to the political arena,"
said Kowalczyk.
"I think Beijing will resume gradual appreciation of the
renminbi in the second quarter and it will probably defuse the
currency tensions to some degree by doing so."
China effectively froze the yuan in July 2008 to help its
exporters weather the global economic crisis. Most market
analysts expect China to let the yuan start climbing gently
again sometime in 2010 since year-on-year export growth has
resumed.
Asia Pacific stocks outside Japan as measured by MSCI
<.MIAPJ0000PUS> were down 0.8 percent, with virtually all
sectors in the red as traders took profits from recent gains
and awaited more concrete signs that the U.S. economic recovery
is gaining traction.
Data on Wednesday showed signs of a stabilisation in the
U.S. job market but only scant growth in its vast services
sector, while other reports this week have pointed to a slow
but painful recovery for the troubled housing market.
[].
Investors are now awaiting the key nonfarm payrolls report
on Friday. A Reuters poll of top 20 forecasters estimated 8,000
jobs were added to the economy. []
Japan's Nikkei average <> fell 0.5 percent, hit by
more selling in Toyota Motor Corp <7203.T>, which sank 3.5
percent.
Toyota's woes worsened after the Obama administration
stepped up pressure on the world's largest carmaker to address
a range of safety issues. []
Its shares have lost more than a fifth of their value since
a recent high on Jan. 21.
After the market close Toyota lifted its cautious guidance
for the financial year to this March, predicting a sharply
smaller operating loss despite its escalating recall troubles.
But a company official was unsure of the full impact on 2010/11
earnings. []
In contrast, Honda Motor Co <7267.T> jumped 2.3 percent
after the automaker, Japan's second biggest, raised its annual
outlook far beyond investor expectations and said it
anticipated more growth next financial year. []
South Korean automakers also rallied on hopes they would
pick up market share from Toyota. Hyundai Motor <005380.KS> was
up 3.6 percent while Kia Motors <000270.KS> gained 2.9 percent.
Resources shares also skidded across the region on lower
metals prices. Shanghai copper fell 3 percent on Thursday while
London futures pared a 3.4 percent slide in the previous
session as worries about the impact of tighter monetary policy,
particularly in China, continued to unsettle the market.
CURRENCIES EYE EUROPEAN MEETINGS
In currency markets, the dollar <.DXY> was broadly steady
after blipping higher as the New Zealand dollar <NZD=> tumbled
on a jump in unemployment and the Australian dollar <AUD=D4>
slipped on data showing a dip in monthly retail sales.
The New Zealand dollar <NZD=D4> hit a five-month low of
$0.6960 after data showed the country's jobless rate rising to
a 10-year high, prompting markets to scale back expectations of
an interest rate rise before mid-year. []
The euro dipped as low as $1.3866 <EUR=>, edging close to a
seven-month low of $1.3851 hit on trading platform EBS earlier
this week. The euro later pared its losses and was steady
compared to late U.S. trading on Wednesday at $1.3890.
The ECB is widely expected to keep rates unchanged at its
meeting on Thursday as financial woes in Greece, Portugal and
Spain endanger the currency bloc's recovery. [].
The Bank of England's monetary policy meeting will also be
in focus on Thursday.
The BOE is expected to halt its quantitative easing
program, although interest rates are likely to be held at 0.5
percent. Sterling edged up 0.1 percent to $1.5912 <GBP=D4>.
Oil <CLc1> slipped 28 cents to $76.70 a barrel as rising
crude inventories in the U.S. signalled that a rebound in U.S.
economic activity was failing to translate into higher demand.
Gold prices <XAU> inched lower to $1,106.80 an ounce as
some investors feared a bullish U.S. job report could further
boost the dollar, which would undermine bullion's appeal as a
currency hedge.
(Editing by Kim Coghill)
