Gold Little Changed in Asia as Dollar Weakness Boosts Appeal; Silver Rises

(Bloomberg) -- Gold in Asia was little changed near a
one-week high, supported by investors demand for the precious
metal as an alternative asset after the dollar weakened on signs
the U.S. economy might slow. Silver rose.

Gold usually moves in the opposite direction to the dollar,
which fell to a four-month low against the Japanese yen and also
traded near a record low against the euro today. Speculation that
a slowing U.S. economy may keep the Federal Reserve from raising
interest rates also weakened the dollar and boosted the appeal of
the precious metal as alternative investment.


Read more at Bloomberg Commodities News

Markets drop as worries grow

(Reuters) - "The outlook for today does not look good. On top of the worries about the exposure of funds to credit markets, now we've worries about weak U.S. economic data," said Choo Hee-yeop, deputy general manager of asset management strategy at Korea Investment and Securities.




At 0025 GMT, Tokyo's Nikkei average had slid 1.6 percent with exporters such as Canon Inc., electronics components maker Kyocera and chip-tester maker Advantest Corp. further hit by a firmer yen.


Read more at Reuters.com Business News

Australian, New Zealand Dollars Rise as U.S. Stock Gain Lifts Carry Trade

(Bloomberg) -- The Australian and New Zealand
dollars gained for a second day against the yen as a rally in
U.S. stocks attracted investors to higher-yielding assets funded
by loans from Japan.

The two currencies headed for weekly gains, recovering from
two-month lows, as the Dow Jones Industrial Average had the
first two-day gain in two weeks. New Zealand's 7.75 percentage
point and Australia's 5.75 point interest-rate premium over
Japan make the currencies favorites for so-called carry trades.


Read more at Bloomberg Currencies News

Carry Trade a `Threat' to Markets, Yen Too Weak, South Korea's Kwon Says

(Bloomberg) -- South Korea's Finance Minister Kwon
Okyu said the yen's weakness isn't justified and that carry
trades based on the Japanese currency threaten to destabilize
global markets.

Borrowing cheaply in Japan to buy assets with higher
returns is ``a potential threat to the international financial
markets and there is a need for a global reaction,'' Kwon said
in a statement after a meeting of Asia Pacific Economic
Cooperation finance ministers in Coolum, Australia.


Read more at Bloomberg Emerging Markets News

Japan's Topix Gains as Earnings Ease U.S. Growth Concern; Konica Advances

(Bloomberg) -- Japan's Topix index advanced after
better-than-forecast earnings in the U.S. lifted indexes there
and eased investor concern that the subprime loan problem will
derail growth in Japan's largest export market.

Exporters also got a boost after the yen weakened against
the dollar and companies including Konica Minolta Holdings Inc.
reported rising profits. Konica jumped the most in three weeks.


Read more at Bloomberg Stocks News

All Nippon, NEC, Hitachi, Mizuho, Mazda, NEC, Ibiden: Japan Equity Preview

(Bloomberg) -- The following stocks may move in
Japanese markets. Prices are as of the close of trading.
Statements were released after the close. Stock symbols are in
parentheses.

All Nippon Airways Co. (9205 JT): Japan's largest domestic
carrier said first-quarter net income rose 11-fold to 87.4
billion yen ($736 million) as it sold a group of hotels, masking
a drop in operating profit. The stock slid 3 yen, or 0.7 percent,
to 450.


Read more at Bloomberg Stocks News

Japan anti-monopoly watchdog probes steel firms

(Reuters) - Japanese media reports saying the FTC had launched an
investigation into possible price-fixing in these markets sent
shares of Nippon Steel down 2.9 percent to 891 yen and shares of
JFE Holdings down 2.6 percent to 8,140 yen as of 0456 GMT.




Read more at Reuters.com Government Filings News

Currency Fund Returns Reach Record in June on Carry Trades, Parker FX Says

(Bloomberg) -- Cumulative returns on currency funds
rose to a record in June as managers profited from declines in
the yen and the dollar, according to Parker Global Strategies.

The yen slid against the euro and the pound last month as
investors borrowed Japan's currency at the lowest interest rate
in the industrialized world to fund purchases of higher-yielding
assets, known as carry trades, Parker Global said. The dollar
fell against major currencies in June as slowing inflation and
consumer spending prompted traders to pare bets on a U.S. rate
increase, Parker Global said.


Read more at Bloomberg Currencies News

M'bishi Motors swings to first Q1 profit in 5 yrs

(Reuters) - Net loss nearly halved to 8.23 billion from 15.11 billion yen, as revenue jumped 30 percent to 630.79 billion yen, aided by a 6-yen rise in the dollar and 18-yen rise in the euro.



But the Tokyo-based automaker kept its interim and annual forecasts unchanged citing risks from rising commodity prices and other unknowns.


Read more at Reuters.com Market News

Asia shares trim falls on solid earnings

(Reuters) - Asian markets opened sharply weaker and the yen gained after the S&P 500 index suffered its worst week in nearly five years on worries that tighter credit would cause takeover activity to slow.




With earnings season in full swing, there were a raft of positive results to support the market, from firms such as Fujifilm Holdings and Fanuc Ltd. .


Read more at Reuters.com Hot Stocks News

Yen May Rise to 116 Per Dollar; Abe Remains Prime Minister, Deutsche Says

(Bloomberg) -- The yen may rise to a four-month high
of 116 per dollar as Japanese Prime Minister Shinzo Abe will
remain in office after his ruling coalition lost its majority in
upper house elections, according to Deutsche Securities.

Abe's decision to retain his post lessens political
instability that may have forced the Bank of Japan to delay an
interest-rate increase next month. The government is likely to
avoid raising sales taxes and close the income gap to appease
opposition parties, supporting consumer spending and the currency.


Read more at Bloomberg Currencies News

Pound Snaps Six-Week Rally Versus Dollar as Investors Avoid Global Risks

(Bloomberg) -- The pound fell versus the dollar,
snapping a six-week rally, as global stocks slumped and investors
pared so-called carry trades on concern U.S. subprime mortgage
defaults will slow growth.

The U.K. currency slid from a 26-year high this week as
investors unwound purchases of assets funded by borrowing in
Japan and Switzerland, which have the lowest rates among major
economies. The pound fell almost 4 percent against the yen, the
biggest weekly decline in almost five months.


Read more at Bloomberg Currencies News

U.K. Pound Falls Most in Five Months as Investors Unwind Carry Trades

(Bloomberg) -- The pound fell the most against the
dollar in almost five months as global stocks slumped and
investors pared so-called carry trades on concern U.S. subprime
mortgage defaults will slow growth.

The U.K. currency dropped more than 1 percent against the
dollar today, falling from near a 26-year high, as investors
unwound purchases of assets funded by borrowing in Japan and
Switzerland, which have the lowest rates among major economies.
The pound this week fell 3 percent against the yen, its biggest
decline since March.


Read more at Bloomberg Currencies News

Yen Strengthens as Slump in Stocks Spurs Investors to Exit of Carry Trades

(Bloomberg) -- The yen rose against all 16 of the
most-active currencies on speculation a slump in stocks will
spur investors to repay loans in Japan used to finance
investment in higher-yielding assets elsewhere.

Japan's currency rose to the strongest in three months
against the dollar and the highest in six weeks versus the euro
as futures traded yesterday in the U.S. indicated Asian stock
markets will drop. The yen's advance was steepest against the
Australian and New Zealand dollars, favorites of the so-called
carry trade, as the Standard & Poor's 500 Index closed yesterday
with a loss of 2.3 percent, the biggest decline since Feb. 27.


Read more at Bloomberg Currencies News

Fujitsu Q1 oper profit down 80 pct, lifts outlook

(Reuters) - The company nudged up its forecast for full-year operating
profit to 195 billion yen from 190 billion, slightly exceeding a
consensus estimate of 194.6 billion yen by 15 analysts polled by
Reuters.




Fujitsu, the world's fifth-biggest maker of servers in a
market dominated by Hewlett-Packard Co. and IBM, is
seeking inroads abroad. It recently made a 395 million euro hostile bid for French computer services firm GFI
Informatique to tap information technology demand in
France and Spain.


Read more at Reuters.com Market News

Honda Q1 rises on brisk car sales, lifts forecasts

(Reuters) - The result was ahead of an average estimate of 159.3 billion yen from three brokerages polled by Reuters.




For the year to March 31, 2008, Tokyo-based Honda raised its net forecast to 625 billion yen from 575 billion yen, and operating profit to 880 billion yen from 770 billion yen to reflect a weaker yen.


Read more at Reuters.com Business News

Yen Retreats From 2-Month High Versus Dollar as Individual Investors Sell

(Bloomberg) -- The yen fell from a two-month high
against the dollar as Japanese individual investors sold the
currency to invest in higher-yielding assets.

The yen has declined against all of the 16 most-active
currencies in the past three months as the lowest borrowing costs
among major economies encouraged so-called carry trades. An
Australian government report today showed faster-than-expected
inflation, sparking speculation of a rate increase next month and
pushing the local dollar to the strongest since 1989.


Read more at Bloomberg Currencies News

UPDATE 1-Japan trade surplus jumps on solid exports

(Reuters) - Imports rose a less-than-expected 10.7 percent, with the
nation's trade surplus rising 53.4 percent to 1.23 trillion yen,
far above a consensus market forecast for 948.5 billion yen.




"Exports were stronger than expected. In terms of
year-on-year changes, export growth seems to have hit bottom in
March-April and perked up gradually in May and June, in tandem
with a recovery in the U.S. manufacturing cycle," said Yoshimasa
Maruyama, an economist at BNP Paribas.


Read more at Reuters.com Economic News

JGB futures hit seven-week high on subprime worries

(Reuters) - March euroyen futures climbed 2 basis points to a one-month
high of 98.910.




Read more at Reuters.com Bonds News

Dollar Rebounds Against Euro, Yen as Technical Charts Show Drop Too Fast

(Bloomberg) -- The dollar was little changed
against the euro after rebounding from a record low as charts
that some investors use to predict currency movements suggested
its decline was too rapid.

The currency also recovered versus the yen as U.S. stock
futures rose and European equities gained, prompting some
traders to use funds borrowed in Japan to buy higher-yielding
assets elsewhere. The dollar has dropped against 15 of the 16
most active currencies in the past month on concern subprime
mortgage defaults in the U.S. will hurt the economy.


Read more at Bloomberg Currencies News