Asian markets retreat

The news out of Washington last Thursday cancelled out a rally on Wall Street and upbeat data on the US economy, while it also hit cur­rency traders, who have sent the safe-haven yen higher despite more Bank of Japan mone­tary easing.
Tokyo fell 0,99 percent, or 99,27 points to  1 940,06, Seoul shed 0,95 percent, or 19,08 points, to 1 980,42 and Sydney was 0,23 per­cent lower, losing 10,5 points to end at 4 623,6.

Hong Kong slid 0,68 percent, fell 153,49 points to close at 22 506,29, while Shanghai lost 0,69 percent, or 15,04 points, to end at 2 153,31.
With just under two weeks to go before huge tax hikes and spending cuts are due to kick in — and likely tip the economy into recession — US lawmakers are still unable to reach a com­promise that will avert the fiscal cliff.

Late last Thursday in Washington Republi­can House Speaker John Boehner scrapped a vote on a Bill that would have extended tax cuts for all Americans earning less than US$1 mil­lion even if a wider deal could not be struck.
The move, which he described as his “Plan B”, was dropped because he did not have enough support. Boehner said his party would recess until after Christmas.
The measure had been blasted by President Barack Obama’s Democrats as a diversionary tactic that would never have passed in the Sen­ate, where they hold a majority.

Now both parties must come up with a budget that will cut the country’s deficit with less painful measures before the start of Janu­ary, when they take effect.
Wall Street ended in positive territory on Thursday, however, lifted by fresh data further indicating the US economy is getting back on its feet.
The Commerce Department said the econ­omy grew 3,1 percent in the third quarter, up from the estimates of 2,7 percent and 2,0 per­cent previously stated.

The figure reflects upward revisions to con­sumer spending, exports and government out­lays, and a downward revision to imports.
Also last Thursday the National Association of Realtors said existing home sales rose 5,9 percent month-on-month in November to their highest level in three years.
The Dow rose 0,45 percent, the S&P 500 gained 0,55 percent and the Nasdaq climbed 0,20 percent.

Thursday’s delay in Washington sent the yen higher in Asian trade. The dollar bought 84,05 yen against 84,38 yen in New York late on Thursday. The euro was at US$1,3204 and 111,00 yen compared with US$1,3241 and 111,72 yen.
However, the Japanese unit is still being pres­sured after the country’s central bank announced fresh monetary easing on Thurs­day, while dealers expect further measures in the new year when the new government is in control.

Oil prices fell, with New York’s main con­tract, light sweet crude for delivery in February down US$1,00 to US$89,13 a barrel and Brent North Sea crude for February falling 53 cents to US$109,67.

Gold was at US$1 648,01 at 1045 GMT com­pared with US$1 668,30 late last Thursday.  — AFP.