By Daniel Inman
Japanese stocks stalled on Wednesday after two sessions of
substantial gains while Australia shares and its currency were
weighed by worse-than-expected wage data.
The U.S. provided Asia with a negative lead as investors
digested conflicting comments from two Federal Reserve presidents
over when the central bank may move to start reducing its bond
buying. This led several Asian markets to put on the brakes after
gains on Tuesday.
Australia's S&P ASX 200 fell 0.6% and South Korea's Kospi lost 0.5%.
Japan's Nikkei as flat after a 3.6% gain over the past two
sessions -- the market's largest two-day rise since early
September. The move higher in stocks was encouraged by a weakening
of the yen which started to fall at the end of last week after a
strong U.S. October labor report gave the dollar some upward
momentum.
After weakening towards the Yen100 to the dollar mark in the
past couple of days the yen (USDJPY) stabilized early Wednesday and
was last at Yen99.62.
Salary data weighed on Australia after local wages, excluding
bonuses, rose by a seasonally adjusted 0.5% in the quarter that
ended in September -- lower than a 0.7% consensus. The Australian
dollar dipped as low as 92.83 U.S. cents compared with 92.98 U.S.
late in New York and was last at 92.96 U.S. cents.
The regional earnings season continues. In Tokyo, Sumitomo
Mitsui Financial Group (SMFJY) rose 1.6% after the bank revised
higher its guidance with the lender increasing its full-year net
profit forecast to Yen750 billion from Yen580 billion.
Also in Japan, Isuzu Motors (ISUZY) rose 0.5% after the
motor-vehicle maker cut its full-year sales guidance for fiscal
year 2013 by Yen100 billion, though it kept its operating profit
forecast of Yen180 billion unchanged.
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