US stocks surge ahead of Fed meeting

NEW YORK–US stocks plowed higher Monday as the dollar retreated and the market looked ahead to a Federal Reserve policy decision in the next two days.

The Dow Jones Industrial Average bolted up 228.11 points (1.29 percent) to 17,977.42.

The broad-based S&P 500 jumped 27.79 (1.35 percent) to 2,081.19, while the tech-rich Nasdaq Composite Index gained 57.75 (1.19 percent) to 4,929.51.

The dollar’s recent gains have raised worries about the drag on US multinationals, but on Monday the euro rose slightly against the greenback, to $1.0590 from $1.0489 Friday.

Chris Low, chief economist at FTN Financial, said data showing tepid growth of just 0.1 percent in US industrial production in February likely lifted confidence the Fed would take a cautious approach to raising near-zero interest rates, probably deciding to hike them later rather than sooner.

The Fed’s two-day monetary policy meeting begins Tuesday.

Valeant Pharmaceuticals International rose 2.5 percent after lifting its offer for Salix Pharmaceuticals from $158 per share to $173 per share, pushing out rival bidder Endo International. Salix gained 2.0 percent, while Endo rose 2.7 percent.

Biotech company Amgen jumped 5.7 percent as it released promising clinical research for its Repatha medication for lowering cholesterol. Other pharma companies also rose, including Celgene (+2.6 percent) and Gilead Sciences (+1.7 percent).

Dow component Procter & Gamble jumped 2.1 percent on a report that it is considering the sale or initial public offering of some beauty brands.

Dow component DuPont dropped 4.3 percent following a downgrade by Bank of America Merrill Lynch.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.08 percent from 2.12 percent Friday, while the 30-year slid to 2.65 percent from 2.70 percent. Bond prices and yields move inversely.

source: business.inquirer.net

Asian stocks take breather after last week’s surge

HONG KONG–Asian markets were mixed Monday as traders took a breather after last week’s rally, but Shanghai hit a 21-month high on hopes of Chinese stimulus measures after a weak manufacturing report.

Wall Street Friday had provided a healthy lead, with the Dow and S&P 500 reaching new highs after Japan’s central bank said it would ramp up its own stimulus program to kickstart growth.

The dollar held on to Friday’s gains against the yen, sitting at seven-year highs. Friday’s news came days after the US Federal Reserve ended its own stimulus.

Sydney eased 0.36 percent, or 19.7 points, to 5,506.9, while Seoul dropped 0.58 percent, or 11.46 points, to close at 1,952.97.

Hong Kong ended 0.34 percent lower, dipping 82.09 points to 23,915.97. But Shanghai closed 0.41 percent higher, adding 9.85 points to 2,430.03, its highest since February last year.

Tokyo was shut for a public holiday.

Global markets and the dollar surged on Friday after the Bank of Japan said it would widen its asset-purchasing scheme to boost lending and try to avoid a recession.

After a jump in Asian shares, including a near-five percent rise in Tokyo, Wall Street powered ahead.

The Dow leapt 1.13 percent and the S&P 500 added 1.17 percent–both hitting all-time highs–while the Nasdaq gained 1.41 percent.

However, dealers took a breather for the first day of November trade, with profit-takers moving in.

Dollar at seven-year highs

China at the weekend released an index of manufacturing activity that showed growth slowed in October, the latest data indicating the world’s second-largest economy slowing down.

The official purchasing managers’ index (PMI) came in at 50.8 last month, the National Bureau of Statistics said, lower than 51.1 in September. Readings above 50 indicate growth while anything below points to contraction.

PMI tracks activity in China’s factories and workshops and is a closely watched indicator of the health of the economy.

On Monday a separate report by HSBC came in a 50.4, the strongest result since July.

“Overall, the manufacturing sector continued to stabilize in October; however, the sequential momentum likely weakened,” said HSBC. “The economy still shows clear signs of insufficient effective demand.”

The figures have raised hopes that Beijing will introduce new economy-boosting measures, with some analysts suggesting officials will cut the amount of cash banks must keep in reserve in order to boosting lending.

“More new infrastructure projects and continuous monetary easing might improve manufacturing for the coming months,” Haitong Securities said, according to Dow Jones Newswires.

On currency markets the dollar bought 112.76 yen–its highest since December 2007–against 112.25 yen Friday in New York.

The euro was at $1.2489 and 140.85 yen compared with $1.2525 and 140.71 yen.

Oil prices were mixed. US benchmark West Texas Intermediate for December delivery fell 39 cents to $80.15, while Brent crude was down 53 cents at $85.33.

The price of gold fell to $1,172.85 an ounce from $1,173.87 late Friday.

In other markets:

— Taipei rose 0.34 percent, or 30.10 points, to 9,004.86.

Taiwan Semiconductor Manufacturing Co. closed 0.38 percent higher at Tw$131.0, while Hon Hai Precision Industry gained 2.19 percent to Tw$98.1.

— Wellington climbed 0.56 percent, or 30.39 points, to 5,418.22.

Genesis Energy surged 2.99 percent to NZ$2.07 and Air New Zealand was steady at NZ$2.01.

— Manila ended 1.35 percent higher, adding 97.12 points to 7,312.85.

GT Capital Holdings gained 1.39 percent to 1,024 pesos while Philippine Long Distance Telephone rose 4.42 percent to 3,262 pesos.

— Jakarta closed flat, edging down 4.04 points to 5,085.51.

Carmaker Astra International rose 1.48 percent to 6,875 rupiah, while state miner Aneka Tambang lost 2.58 percent to 945 rupiah.

— Kuala Lumpur ended flat at 1,853.34.

Public Bank shed 0.3 percent to 18.48 ringgit, while budget carrier AirAsia gained 2.4 percent to 2.56 ringgit.

— Singapore closed 0.51 percent, or 16.59 points, higher at 3,290.84.

DBS Bank advanced 1.84 percent to end at Sg$18.82 and Singapore Telecom added 0.53 percent to finish at Sg$3.80.

— Bangkok closed down 0.31 percent, or 4.98 points, to 1,579.18.

Coal producer Banpu dropped 2.65 percent to 27.50 baht, while supermarket operator Big C Supercenter gained 3.43 percent to 241 baht.

— Mumbai ended little changed at 27,860.38.

Gail India fell 5.70 percent to 499.00 rupees, while Sesa Sterlite gained 2.17 percent to 261.30 rupees.

source: business.inquirer.net

Asian stocks sink on global economy fears

HONG KONG – Asian stock markets were pummeled Monday by the possibility of slowing growth in China and a further reduction in U.S. central bank stimulus.

Stocks sank as investors sought out havens such as the Japanese yen, which strengthened to a seven week high against the dollar, and gold, which was at its highest in more than two months.

Investors were awaiting a two-day meeting of the U.S. Federal Reserve starting Tuesday, where officials are expected to reduce the central bank’s monthly bond buying by another $10 billion to $65 billion. Recent signs of a sustained recovery in the world’s biggest economy will play a big role in the decision by Fed officials to scale back stimulus for a second time.

Emerging markets have been propped up for years by investors seeking higher returns using a tide of so-called “easy money” from the Fed and other central banks but now that the end for those policies looks to be near, some investors are fleeing stocks. The turmoil has slammed some places particularly hard, such as Argentina, where the peso dropped 16 percent against the dollar over two days last week.

“The growing turmoil in emerging markets is inflicting damage on risk assets across the board and no letup is expected in the near term,” said Mitul Kotecha, head of global markets research for Asia at Credit Agricole CIB, in a report.

The global sell-off was triggered by the preliminary results Thursday of a survey showing that China’s massive manufacturing industry would contract in January for the first time in six months, the latest sign that a painful slowdown in the world’s No. 2 economy is likely to continue.

“We’ve seen brief slowdowns in China before,” said Michael Every, head of financial markets research for Asia-Pacific at Rabobank. “The difference is we don’t expect to see rapid acceleration again this time, because they’re trying to clamp down on credit growth to prevent nonperforming loans going even higher than they are.”

Japan’s Nikkei 225 sank 2.3 percent to 15,023.08 as they dollar edged higher to 102.42 yen from 102.38 late Friday. The yen has strengthened significantly in the past few days, which is negative for export stocks.

Hong Kong’s Hang Seng lost 2 percent to 21,987.65 and Seoul’s Kospi dropped 1.3 percent to 1,915.27. In mainland China, the Shanghai Composite Index dropped 0.7 percent to 2,031.24. Benchmarks in Taiwan, Singapore, Philippines, Indonesia and New Zealand also slipped.

The Australian stock market was closed for a holiday.

In the U.S. on Friday, the Dow finished down 2 percent at 15,879 and the Standard & Poor’s 500 fell 2.1 percent to 1,790. The Nasdaq composite fell 2.2 percent to 4,128.

The euro strengthened to $1.3683 from $1.3676.

In energy markets, benchmark crude for March delivery was up 6 cents to $96.70 in electronic trading on the New York Mercantile Exchange. The contract fell 68 cents to close at $96.64 on Friday.

source: business.inquirer.net

Asian stocks fall further on Wall Street decline

BEIJING  — Asian markets fell further Friday after overnight declines on Wall Street, weaker Chinese manufacturing and gloomy outlooks for South Korean automakers.

Oil edged up to stay above $95 a barrel after suffering its biggest one-day drop in 14 months.

Major indexes closed out 2013 at or near record highs, but investors seemed reluctant to chase more gains in the new year.

China’s benchmark Shanghai Composite Index shed 0.4 percent to 2,101.30, adding to the previous day’s 0.3 percent loss after an HSBC Corp. survey showed manufacturing activity weakened in December. Analysts said that suggested China’s modest economic recovery might be fading.

“We expect the upcoming set of data releases to show China’s economy losing steam in December,” said UBS economist Tao Wang in a report.

Hong Kong’s Hang Seng tumbled 1.2 percent to 23,045.5.

South Korea’s Kospi gave up 0.8 percent to 1,950.98 after Hyundai Motor Co. and Kia Motors Corp. said they expect 2014 to see their weakest sales growth in a decade.

Tokyo was closed for the last day of its New Year’s break.

Investors looked ahead to comments later Friday by U.S. Federal Reserve Chairman Ben Barnanke for indications about the possible pace of further reductions in monetary stimulus.

Elsewhere, Taiwan’s Taiex lost 0.5 percent to 8,572.16 and Sydney’s S&P ASX 200 declined 0.5 percent to 5,341.50. Singapore and Malaysia also fell.

New Zealand bucked the trend to add 0.5 percent to 5,129.26.

On Thursday, U.S. stocks fell despite data showing healthy December manufacturing growth. Analysts said prices were bound to pull back after higher corporate profits and Fed stimulus pushed markets to record levels in 2013.

The Standard & Poor’s 500 index turned in its worst performance in three weeks, declining 0.9 percent. The Dow Jones and the Nasdaq both slid 0.8 percent.

In Europe, Britain’s FTSE 100 closed down 0.5 percent on Thursday while France’s CAC-40 and Germany’s DAX both shed 1.6 percent.

In currency markets, the U.S. dollar edged up 104.8 yen. The euro was down 0.1 percent at $1.366.

Benchmark oil for February delivery gained 13 cents a barrel to $95.57 in electronic trading on the New York Mercantile Exchange. The contract plunged $2.98 the previous day to settle at $95.44.

source: business.inquirer.net

US stocks finish lower as Fed meets

NEW YORK—US stocks Tuesday closed lower as investors awaited Wednesday’s conclusion of a much-anticipated US Federal Reserve policy meeting.

The Dow Jones Industrial Average dipped 9.31 points (0.06 percent) to 15,875.26.

The broad-based S&P 500 fell 5.54 (0.31 percent) to 1,781.00, while the tech-rich Nasdaq Composite Index gave up 5.84 (0.14 percent) at 4,023.68.


“Investors are basically sitting on their hands,” said Sam Stovall, chief investment strategist of S&P Capital IQ.

“Yesterday we had an oversold rally,” Stovall said. “And now, investors really don’t want to chase that rally for fear that the Fed will do or say something that turns this market back down.”

The Fed’s Federal Open Market Committee Tuesday kicked off a two-day meeting that will debate whether economic conditions are strong enough to immediately scale back the $85 billion a month quantitative-easing program.

Analysts disagree on the likelihood of a taper, but some, including Stovall, expect the Fed to announce a modest reduction of about $10 billion to bond purchases.

Facebook rose 2.0 percent after beginning to experiment with video ads on news feeds this week, potentially unlocking a big revenue source.

Petroleum pipeline company Williams Companies jumped 4.3 percent after Corvex Management and Soroban Master Fund disclosed that they together had acquired 8.8 percent of the company and seek board representation. The effort is the latest example of shareholder activism in the oil patch.

Dow component Boeing increased 0.9 percent after announcing a $10 billion share buyback and a 50 percent dividend hike.

Fellow Dow member 3M rose 2.9 percent after announcing a 35 percent dividend increase. The company also forecast 2014 earnings of $7.30-$7.55 per share, compared with analyst expectations of $7.40.

Hewlett-Packard tacked on 3.5 percent after JPMorgan Chase upgraded the stock. The JPMorgan note said challenges facing HP are “easing” and that the PC outlook is “starting to improve,” Barron’s reported.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.84 percent from 2.88 percent Monday, while the 30-year declined to 3.87 percent from 3.90 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks fall anew on Fed tapering worries

NEW YORK—US stocks Tuesday fell for a second day in a row as speculation increased that the US Federal Reserve will soon scale back its bond-buying program.

The Dow Jones Industrial Average fell 94.15 points (0.59 percent) to 15,914.62.

The broad-based S&P 500 dipped 5.75 (0.32 percent) to 1,795.15, while the tech-rich Nasdaq Composite Index declined 8.06 (0.20 percent) to 4,037.20.

The sell-off came as investors focused on prospects that the Fed may trim its $85 billion per month bond-buying program earlier than previously believed, perhaps at its monetary policy meeting in two weeks.

That speculation picked up following strong economic data on Monday, a dearth of major economic news on Tuesday and ahead of a big US labor report Friday that many feel could hasten Fed action if jobs growth is strong.

The markets are falling because of “more taper fears” as economic data improves, said Brent Schutte of BMO Private Bank.

Dow component Pfizer fell 1.9 percent after Goldman Sachs removed it from its “conviction buy” list. Goldman said it sees less upside for Pfizer in light of its rise in value, Barrons.com reported.

GM reported a 14 percent rise in November auto sales, yet shares fell 2.5 percent. Rival automaker Ford posted its best November performance since 2004, but shares declined 2.9 percent.

Technology giant Apple jumped 2.7 percent following a Wall Street Journal report that it acquired social media analytics firm Topsy Labs for more than $200 million. Separately, a Jefferies note cited anecdotal evidence that suggested Apple had a “great” Black Friday weekend.

Electric-car company Tesla Motors soared 16.5 percent after it reported that German authorities had cleared it in a safety probe. Separately, Morgan Stanley said the US upstart is its “top pick” among 26 names in the US auto sector.

Fast-food chain Yum Brands lost 2.7 percent after reporting a one percent increase in same-store sales in China, but noting that the increase was fueled in part by a one-time promotion at its Kentucky Fried Chicken chain. The company pledged a “strong bounceback” in 2014 “following a year that is clearly below our high expectations.”

Bond prices rose. The yield on the 10-year US Treasury dipped to 2.78 percent from 2.80 percent Monday, while the 30-year declined to 3.84 percent from 3.86 percent. Bond prices and yields move inversely.

source: business.inquirer.net

Dow ends at new record after topping 16,000 mark

NEW YORK CITY—The Dow edged higher to a fresh record Monday after topping 16,000 for the first time, while the S&P 500 breached 1,800 but pulled back in late trade.

The Dow Jones Industrial Average closed with a meager gain of 14.32 points (0.09 percent) at 15,976.02 after reaching an intraday high of 16,030.28 shortly after the market opened. It was the blue-chip Dow’s fourth consecutive record close.

The broad-based S&P 500 shed 6.65 (0.37 percent) at 1,791.53, falling heavily in late-afternoon trade after earlier scaling above 1,800 for the first time.

The tech-rich Nasdaq Composite Index lost 36.90 (0.93 percent) at 3,949.07.

“Stocks turned lower in the final hour of trading after Carl Icahn expressed a cautious outlook on equity markets,” Wells Fargo Advisors said in a market note. “The comments added to existing trepidation following a six-week rally on the S&P” and ahead of Federal Reserve Chairman Ben Bernanke’s late Tuesday, the firm said.

Art Hogan, head of product strategy for equity research at Lazard Capital Markets, said Sunday’s news of major airplane orders for Boeing and Airbus catalyzed markets.

Dow member Boeing rose 1.7 percent after winning more than $100 billion in new airplane orders at the Dubai Airshow on Sunday.

JPMorgan Chase, another Dow component, rose 1.6 percent after announcing a $4.5 billion settlement Friday to compensate 21 institutional investors for losses on mortgage securities it and Bear Stearns sold before the financial crisis.

Microsoft, another blue chip, retreated 1.7 percent after Bank of America Merrill Lynch downgraded it to “underperform” citing “transition risk” over the company’s search for a new chief executive to replace outgoing head Steve Ballmer.

Heavyweight Apple dropped 1.2 percent on the Nasdaq. Other tech stocks stumbled. Facebook tumbled 6.5 percent, Tesla sank 10.2 percent and Netflix lost 2.3 percent.

Bond prices rose. The yield on the 10-year US Treasury dropped to 2.68 percent from 2.71 percent Friday, while the 30-year dipped to 3.77 percent from 3.80 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks retreat as Fed keeps stimulus going

NEW YORK CITY—US stocks Wednesday closed lower after the US Federal Reserve maintained an aggressive monetary stimulus program and reiterated that it will await stronger economic conditions before scaling it back.

The Dow Jones Industrial Average fell 61.59 (0.39 percent) to 15,618.76.

The broad-based S&P 500 declined 8.64 (0.49 percent) to 1,763.31, while the tech-rich Nasdaq Composite Index gave up 21.72 (0.55 percent) at 3,930.62.


The Fed’s decision to hold steady on its $85 billion per-month bond-buying program, though bullish for stocks, was widely anticipated and had helped propel the Dow and S&P 500 to records Tuesday.

Analysts said the markets were due for a break.

“It’s just a case of profit taking,” said William Lynch, director of investment for Hinsdale Associates.

The market “has been so strong that it’s been due for a breather.”

US auto giant General Motors powered 3.2 percent higher after earnings excluding special items bested expectations by three cents at 96 cents per share. The company reported better results in North America and a narrowed loss in Europe.

Video game developer Electronic Arts jumped 7.8 percent after reporting earnings of 33 cents per share, more than double the 12 cents expected by analysts. The company also raised its earnings forecast.

Pharmaceutical company Gilead Sciences jumped 4.6 percent after earnings rose 17 percent to $788.6 million and the company raised its revenue forecast and plans for research and development spending. Sales of antiviral products were particularly strong.

Money transfer firm Western Union sank 12.4 percent after announcing that it expects operating profit growth to stall in 2014 due to significantly higher regulatory costs.

Internet networking site LinkedIn sank 9.3 percent after the company’s fourth-quarter revenue forecast of $415-$420 million lagged analyst forecasts of $438.1 million.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.53 percent from 2.51 percent Tuesday, while the 30-year edged higher to 3.63 percent from 3.62 percent. Bond prices and yields move inversely.

source: business.inquirer.net

Asian shares lifted by bargain-buying, Wall St. rally

HONG KONG—Asian markets rose on Monday following a record close on Wall Street, and as investors picked up bargains after broad losses last week.

The dollar advanced against the yen but the gains were capped by expectations the US Federal Reserve will keep its monetary easing policy in place well into the new year.

Tokyo jumped 2.19 percent, or 307.85 points, to 14,396.04 thanks to the pick-up in the dollar. Sydney was up 1.02 percent, or 55.1 points, at 5,441.4, while Seoul closed 0.68 percent higher, adding 13.75 points to 2,048.14.

Shanghai ended flat, edging up 0.91 points to 2,133.87 while Hong Kong added 0.48 percent, or 108.24 points, to end at 22,806.58

The gains follow a lacklustre performance in the region last week following worse than expected jobs figures out of the United States that indicate the economy is not as strong as first thought.

Traders Monday took their cue from Wall Street, whose three main indexes posted healthy gains on Friday thanks to upbeat corporate results.

Amazon and Microsoft announced better than expected earnings for the July-September quarter, while there were also solid results from Procter & Gamble and UPS.

The Dow rose 0.39 percent, while the broad-based S&P 500 climbed 0.44 percent to a new record Friday. The Nasdaq tacked on 0.37 percent.

US shares, like most global stocks, have been given some support from traders betting the Fed will delay winding down its $85 billion-a-month bond-buying stimulus for some time.

There had been a widespread belief it would begin tapering by December at the latest, but analysts say the weak jobs data and this month’s government shutdown has made that unlikely.

The prospect of a continuation of the Fed’s pump-priming—which sees vast sums of dollars flooding the financial system—has weighed on the greenback in recent weeks, although it picked up a tad in Asia Monday.

In afternoon Tokyo trade the unit bought 97.67 yen compared with 97.43 yen in New York Friday, while the euro was at $1.3811 and 134.76 yen against $1.3805 and 134.50 yen.

“Amid growing expectations of continued Fed stimulus, the dollar will likely remain under pressure in the near term,” Naoya Nishimura, a strategist at Resona Bank, told Dow Jones Newswires.

On oil markets New York’s main contract, West Texas Intermediate for delivery in December, was down 18 cents at $97.67 in afternoon trade. Brent North Sea crude for December rose 37 cents to $107.30.
Gold rose to $1,350.24 at 1100 GMT compared with $1,340.35 on Friday.

In other markets:

– Mumbai fell 0.55 percent, or 113.24 points, to 20,570.28 points.

Private Future Retail fell 6.90 percent to 72.20 rupees while diversified conglomerate ITC fell 3.63 percent to 327.65 rupees.

– Bangkok lost 0.36 percent, or 5.26 points, to close at 1,449.62.

Coal producer Banpu fell 0.85 percent to 29.25 baht while Bangkok Bank rose 0.99 percent to 205 baht.

– Jakarta ended up 0.21 percent, or 9.69 points, at 4,590.54.

Indah Kiat Pulp and Paper gained 0.69 percent at 1,450 rupiah, while miner Aneka Tambang lost 1.88 percent at 1,570 rupiah.

– Kuala Lumpur’s main index gained 0.05 percent, 0.82 points, to close at 1,818.39.

UEM Sunrise lost 3.9 percent to 2.50, Felda Global Ventures Holdings eased 2.2 percent to 4.40 while Petronas Gas added 2.1 percent to 24.30 ringgit.

– Singapore gained 0.08 percent, or 2.61 points, to 3,207.85.

Agribusiness company Wilmar International rose 0.29 percent to Sg$3.46 while United Overseas Bank was down 0.19 percent at Sg$20.75.

– Taipei finished up 0.73 percent, or 61.21 points, at 8,407.83.

Taiwan Semiconductor Manufacturing Co. gained 2.34 percent to Tw$109.5 while leading food producer Uni-President Enterprise was 2.21 percent higher at Tw$55.5.

– Manila was closed for village elections.

– Wellington was closed for a public holiday.

source: business.inquirer.net

Asian shares mixed ahead of US jobs data

HONG KONG – Asian markets were mixed in cautious trading on Tuesday as investors awaited the release of delayed US September jobs data later in the day.

The dollar edged up against the yen, returning to its upward trend after this month’s Washington standoff over the debt ceiling and budget had sent investors running to the Japanese unit.

Tokyo rose 0.13 percent, or 19.68 points, to 14,713.25 thanks to the weakening yen, while Sydney climbed 0.40 percent, or 21.3 points, to 5,373.1. Seoul added 0.15 percent, or 3.11 points, to end at 2,056.12.

However, Shanghai fell 0.83 percent, or 18.59 points, to end at 2,210.65 and Hong Kong lost 0.52 percent, or 122.16 points, to end at 23,315.99.

“Market participation levels are likely to remain low until data can help confirm the state of the US economic recovery,” said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.

With last week’s global rally – fuelled by the US deal to reopen the government after 16 days and avert a devastating default – out of the way, attention has turned back to economic numbers, with the non-farm payrolls figures in focus.

They had been due out at the beginning of the month but were put off because of the US government shutdown. Traders will pore over them for clues about the state of the US economy.

However, Kathy Lien, managing director at BK Asset Management, said there would likely be a cautious reaction to a strong report because it predates the shutdown, which likely depressed hiring.

She added that if jobs growth misses expectations, “the dollar could be in even more trouble because October payrolls are expected to be much weaker.”

Economists say there is a good chance the US Federal Reserve will delay winding down its stimulus program – which depressed the value of the dollar – until possibly the new year.

On currency markets, the dollar was changing hands at 98.34 yen in the afternoon compared with 98.15 yen in New York on Monday, while the euro fetched $1.3674 and 134.49 yen compared with 1.3681 and 134.26 yen.

Wall Street was unable to provide a strong lead as investors took a breather after last week’s strong gains.

The Dow was flat and the S&P 500 edged up marginally to another record high, while the tech-rich Nasdaq added 0.15 percent.

In oil trade, New York’s main contract, West Texas Intermediate for delivery in November, fell 80 cents to $98.42 a barrel, extending its slide after hitting three-month lows late Monday. However, Brent North Sea crude for December gained 22 cents to $109.86.

Gold cost $1,310.44 at 0841 GMT compared with $1,315.41 on Monday.

In other markets:

– Taipei was virtually unchanged, dipping 1.05 points to 8,418.27.

Taiwan Semiconductor Manufacturing Co. rose 1.36 percent to Tw$111.5 while Chunghwa Telecom fell 1.95 percent to Tw$90.6.

– Wellington rose 0.61 percent, or 29.23 points, to 4,831.79.

Fletcher Building was up 1.37 percent at NZ$9.64 and Air New Zealand added 1.92 percent to NZ$1.59.

– Manila ended flat, edging up 6.04 points to 6,603.60.

Ayala Land fell 0.15 percent to 30.60 pesos and its parent Ayala Corp. shed 0.57 percent to 612 pesos.

source: business.inquirer.net