* Dollar flat, Asia stocks waver ahead of Fed meeting
* Asia currencies firm as Dubai bailout helps risk appetite
* Oil stabilises after nine-day slide
(Repeats to more subscribers)
By Susan Fenton
HONG KONG, Dec 15 (Reuters) - The dollar steadied on
Tuesday while Asian stocks wavered as investors turned cautious
ahead of a meeting of the U.S. Federal Reserve although Abu
Dhabi's decision to throw a lifeline to Dubai continued to
bolster risk appetite.
Markets expect the Fed to pledge to maintain very low rates
for an extended period following the two-day meeting which
begins later on Tuesday, but they will be on guard for any new
indications about monetary policy. []
Abu Dhabi's surprise decision on Monday to provide Dubai
with $10 billion to help its neighbour avoid defaulting on debt
has boosted risk appetite among investors globally, helping
push the Dow Jones up 0.3 percent to finish at a 14-month high
on Monday while Dubai's stock market rallied 10.4 percent.
Asian shares were more subdued after rebounding on Monday
on the Dubai news as attention shifted to the Fed meeting but
improving risk appetite helped Asian currencies such as the
Taiwan dollar <TWD=>.
"There's some caution ahead of the Fed meeting. I don't
think they'll raise rates, but depending on their comments the
dollar could fall, and this is making investors in the stock
market nervous as well," said Hideyuki Ishiguro, a strategist
at Okasan Securities in Tokyo.
The dollar <.DXY> was virtually unchanged against a basket
of major currencies.
Japan's Nikkei <> share index dipped 0.2 percent as a
strengthening yen <JPY=> put shares of exporters under
pressure.
Hong Kong's Hang Seng Index <> fell 0.9 percent as
shares of Chinese banks were hit by fears Beijing could soon
clamp down on bank lending after announcing moves on Monday to
try and rein in the property market.
EXXON BOOST
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> was flat. But analysts say investors will
continue to take light profits to lock in gains before the
year-end after rallying 65 percent this year.
The Thomson Reuters index of regional shares <.TRXFLDAXPU>
was down 0.2 percent but Australia's share market nudged up 0.5
percent as energy shares were boosted by news overnight that
Exxon Mobil Corp <XOM.N>, the world's largest listed energy
company, planned a $30 billion takeover of natural gas supplier
XTO Energy <XTO.N>. []
"A couple of big pieces of news like that is very
encouraging. The Exxon move has put a bit of enthusiasm back
into the market and it's supportive of our coal seam gas
sector," said Ivor Ries, an analyst at E.L. & C. Baillieu
Stockbroking in Australia.
The oil price <CLc1> stabilised at just below $70 a barrel,
after falling for nine straight days. They have dropped more
than $8 a barrel since Dec. 1, the longest slide since July
2001, as rising U.S. inventory levels indicated sluggish oil
demand.
Financial markets will also be scrutinising a string of
U.S. data due on Tuesday, including industrial production,
producer prices and the NAHB housing index for December, for
indications on the health of the world's biggest economy.
[]
In another evidence of lingering uncertainties from the
global crisis, Standard & Poor's hit Mexico with its second
sovereign debt following on the heels of Greece, which was
downgraded by Fitch last week for the first time in a decade on
concerns about its finances. []
Gold prices <XAU=> edged up to $1,127.90 an ounce, from
$1,126.20 at the New York close, amid uncertainty about the
dollar's immediate direction.
(Additional reporting by Victoria Thieberger in MELBOURNE and
Elaine Lies in TOKYO; editing by Kazunori Takada)
(susan.fenton@thomsonreuters.com; +852 2843 6367; Reuters
Messaging: susan.fenton.thomsonreuters.com@reuters.net)
