Asian shares aimless, gold hits two-month peak

Reuters  Sydney, August 19, 2013

First Published: 09:01 IST(19/8/2013) | Last Updated: 09:49 IST(19/8/2013


Asian markets were wary on Monday amid doubts whether minutes of the Federal Reserve's last policy meeting will provide clarity on when it might scale back stimulus, leading gold up to a two-month peak and nudging the US dollar lower.
Asian share markets showed no clear trend with a mixture of small losses and gains, while pressure remained on Indian assets after the rupee cratered to record lows despite government efforts to stem the flow.
Yields on 10-year Treasury debt were up near two-year highs at 2.85 % on Monday on persistent speculation the Fed will start tapering next month, and analysts suspect the minutes may not resolve the issue.

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"The Fed has made every effort to prepare the market for tapering come the fall and the minutes should continue to suggest just that," said Michael Cloherty, head of US rates strategy at RBC Capital Markets.
"What the minutes are unlikely to include, however, is any clear indication of the exact timing." That would depend on economic data in the lead-up to the Sept. 17-18 meeting.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 %. It had ended last week with gains of 1.45 %, though that merely recovered ground lost during the previous two weeks.
Tokyo's Nikkei share average inched up 0.1 % on Monday after ending last week flat. Japanese data showed the third-largest trade deficit on record as imports rose even faster than exports.
NITESH KUMAR
PGDM 1ST