World Markets: Asian stocks steady
Asian shares steadied on Friday after falling nearly 2 per cent this week amid concerns about the looming U.S. fiscal cliff, while Japanese stocks rallied for a second day on expectations of further monetary policy easing after an election next month.
The yen held near a six-and-a-half month low plumbed against the dollar after Shinzo Abe, leader of the main opposition Liberal Democratic Party and likely to be Japan's next leader, called on Thursday for the country's central bank to adopt interest rates of zero or below zero to spur lending.
Away from Japan, investors remained wary of buying riskier assets, spooked by uncertainty about the U.S. budget tussle, the euro zone's relapse into recession and violence in the Middle East. Oil was on course for a weekly loss and U.S. stock index futures weakened.
President Barack Obama and Congressional leaders begin budget talks on Friday, amid fears the United States will stumble back into recession if no deal is reached to avoid some of the $600 billion in spending cuts and tax hikes due to start taking effect in January.
The latest comments from key players reinforces to us that the two sides are starting negotiations from rather distant points, said Sean Callow, senior currency strategist at Westpac bank in Sydney, in a note.
There will be plenty of negative headlines in coming weeks that weigh on risk assets and boost USD, which is yet again trading like a safe haven even when the bad news is generated by
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