* U.S. dollar bounces, while oil and gold fade
* Obama visits Asia with trade and currencies in focus
* Most Asian shares soft on U.S. consumer concerns
By Wayne Cole
SYDNEY, Nov 13 (Reuters) - A rare rally in the U.S. dollar
was the focus in Asia on Friday as investors wondered if
President Barack Obama's nine-day visit to the region would
generate pressure on some countries to let their currencies
rise.
The bounce in the long-suffering dollar added to
profit-taking in commodities such as gold and oil, while
weakness in shares across Asia supported the dollar as a
safe-haven trade.
Obama kicks off his first official tour of Asia by meeting
Japanese Prime Minister Yukio Hatoyama on Friday, then goes on
to Singapore, China and South Korea. [],
High on the agenda will be U.S. calls for Asian countries to
do more to stimulate domestic demand instead of relying on
exports to America. That would likely require much of Asia, and
China in particular, to let their currencies appreciate.
But there's an inherent contradiction in the U.S. stance.
Treasury Secretary Timothy Geithner often states his desire
to see a strong dollar, yet at the same time wants Asian
exporters to let their currencies gain ground against the
dollar.
Leaders of Asia Pacific Economic Cooperation seemed to give
ground this week by backing undefined "market-oriented"
exchange rates. Yet many of the same countries were spotted
intervening to buy the dollar to stop a rise in their own
currencies that could make their exports less competitive and
impede their economic recovery.
Traders said this burst of buying caught many speculators
short and was a major reason the U.S. dollar bounced so far.
The euro had pulled back to $1.4858 <EUR=>, from Thursday's
peak around $1.5048, while the dollar reached 90.30 yen <JPY=>
from the week's 89.26 trough.
Against a basket of currencies the dollar <.DXY> <=USD> was
up at 75.596 and off 15-mth lows of 74.774, though it remains
within a downtrend channel that stretches back to May.
The dollar's rise added to pressure on oil, already
burdened by a surprisingly large increase in U.S. crude
inventories. U.S. crude oil futures for December delivery
<CLc1> were off 38 cents at $76.56, after shedding 3 percent on
Thursday.
Likewise, spot gold was dragged down to $1,103.60 per ounce
<XAU=>, from a record peak of $1,122.95.
U.S. CONSUMER FATIGUE
Most share markets in Asia tracked Thursday's fall in U.S.
stocks, which snapped a six-day winning streak.
The Dow Jones average dropped 0.91 percent on Thursday to
10,197.47, while the Standard & Poor's 500 Index <.SPX> fell
1.03 percent to 1,087.24.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> followed on Friday, sliding 0.9 percent at
407.24.
Some market watchers blamed the reversal on concerns about
U.S. shoppers. A return of strong consumer demand is vital for
a sustainable recovery in the world's largest economy.
On Thursday, Wal-Mart Stores Inc <WMT.N> forecast earnings
during the key holiday quarter could miss Wall Street estimates
as its customers face rising unemployment. []
"It is inevitable for exporters in Korea and China to be
hit as U.S. retailers are unlikely to enjoy the holiday
shopping season," said Choo Hee-yeop, a strategist at Korea
Investment & Securities.
In Japan, the benchmark Nikkei <> fell 0.5 percent
after snapping a four-day rising streak on Thursday and looked
headed for its lowest close in a week. The broader Topix
<> was flat at 867.50.
Struggling Japan Airlines Corp <9205.T> as well as a slew
of banks including No. 2 lender Mizuho Financial Group <8411.T>
and No. 3 bank Sumitomo Mitsui Financial Group <8316.T>
announce earnings results later in the day.
(Editing by Kim Coghill)
