* Oil falls again, copper slips but gold firms
* U.S. dollar testing week-highs
* Strong U.S. data builds optimism
By Sanjeev Miglani
SINGAPORE, Jan 5 (Reuters) -
Asian stocks slid on Wednesday following a broad
commodities sell-off but the U.S. dollar edged higher after
stronger-than expected U.S. factory data offered further
evidence of an economic recovery.
Oil fell for a second day as investors took profits from a
sharp year-end rally. Gold inched up, though, after sinking
more than 2 percent in the previous session.
The fall in commodities to their lowest level in seven
weeks weighed on shares of resource companies in early Asia
trade, although market analysts said it was likely to have a
limited impact.
"I would expect Asian stocks to be slightly weaker although
in Japan the weaker yen will probably help its important export
sector," said Jamie Coutts, a technical analyst at BGC
Securities in Tokyo.
The MSCI index of Asian shares excluding Japan
fell 0.50 percent while Japan's benchmark
Nikkei was little changed, shrugging off concerns
about the lower commodity prices and holding on to the
previous day's gains.
But analysts say stocks will likely continue to be
supported by optimism that the U.S. economy is gathering
momentum, albeit slowly.
"Investors are focusing on the U.S. payroll data this week
(Friday), so they may stay on the sidelines for this week, but
the mood is positive," said Hiroichi Nishi, general manager at
Nikko Cordial Securities.
The U.S. dollar bounced from three-week lows against the
euro on Tuesday and held firm in early Asia trade at around 82
yen after the upbeat U.S. maufacturing data, and more
gains are seen likely given the heavy sales of euro zone bonds
anticipated this year.
The dollar index which measures the greenback's
performance against a basket of currencies rose 0.2
percent to its highest level since Dec 30.
"Incoming U.S. data is quite good and that's part of the
reason why I think the dollar is going to remain with a
reasonable bid tone," said Richard Grace, chief currency
strategist at Commonwealth Bank.
There was little reaction in Asian markets to minutes of
the Federal Reserve's December meeting released on Tuesday,
which revealed policy makers felt the U.S. economy still
needed help despite signs of strength. []
The U.S. economy, having emerged from its deepest
recession in generations in the summer of 2009, has since
expanded in fits and starts. Gross domestic product rose at a
2.6 percent annual rate in the third quarter, a pace still
seen as too low to bring down the country's 9.8 percent
jobless rate.
Data showed new orders received by U.S. factories rose in
November and orders, excluding transportation, recorded their
largest gain in eight months.
The stronger dollar weighed on copper futures after prices
slid from record highs in the previous session that saw
commodities suffer their biggest daily fall in seven weeks.
Crude oil <CLc1> slipped 20 cents to $89.18 a barrel after
sliding 2.4 percent on Tuesday, but spot gold rose 0.3
percent to $1,383.40 an ounce.
(Additional reporting by Ian Chua in SYDNEY, Editing by)
