Friday, September 9, 2011

ASIA-Shares set to be wary ahead of data

WELLINGTON: Asian stocks face another difficult start on Friday as the head of the Federal Reserve disappointed by not detailing how it might support the struggling U.S. economy, while the euro zone's ever present debt woes weighed.

Wall Street fell after Ben Bernanke promised the Fed would do all it could to boost growth and cut unemployment, but was short on spelling out the sorts of measures that would be taken to do that.

The risk averse sentiment had already been underscored by the European Central bank's decision to hold rates with the ECB President talking about the downside risks to the euro zone's economy.

Wall Street's main indexes closed between 0.8 percent and 1.1 percent lower, with banks the biggest decliners.

Asian stocks listed on Wall Street fell 1.4 percent, world stocks, as measured by the MSCI world equity index, eased 0.6 percent.

Investors are looking to the reaction to a speech by U.S. President Barack Obama, who unveiled a $447 billion plan to boost the U.S. economy.

A raft of Chinese data, including consumer inflation, retail sales and industrial output will be watched for what it portends for growth.

European stocks closed up 0.9 percent, erasing earlier losses after Trichet's speech, while British shares closed up 0.4 percent.

Japanese stocks, which climbed further from a six-month low on Thursday, are seen tentatively higher, with Nikkei futures traded in Chicago 55 points above the close in Osaka.

Australian shares are seen opening lower, with the share price index futures down 0.4 percent to a 18 point premium to the underlying S&P/ASX 200. ' Reuters


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