Thursday, December 9, 2010

STOCKS NEWS ASIA-Shares to drift on mixed signals

WELLINGTON: Asian stocks are set for a mixed start on'' Thursday as the potential for higher returns for banks from higher bond yields was offset by concerns over how the U.S. would tackle its rising debt burden.

The main Wall Street indices edged as much as 0.4 percent higher, with gains in financial and TECHNOLOGY [] stocks overcoming losses from a second day of surging bond yields.

Bond prices fell sharply again, as investor pessimism continued to grow over the U.S. government debt burden in the wake of a deal to extend tax cuts.

On the other hand higher bond yields, which move inversely to prices,'' means better returns for banks, sending the KBW Bank index up 2.9 percent.

Semiconductor stocks lifted the tech-heavy Nasdaq after solid outlooks from Texas Instruments Inc and Novellus Systems Inc.

The Standard & Poor's 500 Index closed near a technical resistance level, which could see it trade sideways for the few days, before making a further move higher heading to the end of the year.

Asian stocks listed on Wall Street eased 0.49 percent.

British shares slipped 0.2 percent as miners fell on weaker metal prices while European shares were lifted to a closing 26-month high by rising financial stocks.

The U.S. dollar continued to track rising bond yields higher, with analysts picking the greenback to make further gains as U.S. debt concerns overtook euro zone woes.

Japan's Nikkei, which hit a seven-month high on Wednesday as exporters cheered the falling yen, may struggle to push higher. Nikkei futures traded in Chicago 35 points below the last closing level in Osaka.

Australian stocks are set to rise with share price index futures up 19 points to 4,719, a 19.1 point premium to the close of the underlying S&P/ASX 200 index. - Reuters


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