TOKYO: Asian shares paused on Friday as investors took stock of a four-day rally driven by optimism, yet to be borne out by action, that authorities will soon take the steps needed to ease concerns over the euro zone's debt crisis and weak growth. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed after rising to a three-month high on Thursday. "Stocks are overheating and profit-takers will cool things down in the mean time, but momentum is still moving forward from a broader picture," said Lee Young-gon, an analyst at Hana Daetoo Securities. Japan's Nikkei stock average opened down 0.5 percent, after hitting the psychologically key 9,000 mark for the first time in five weeks on Thursday. U.S. and European equities rallied for a fifth straight day on Thursday, with the leading index of European shares nearing a 2012 peak. Indicating a steady rise in risk appetite, the Euro STOXX 50 volatility index, Europe's main gauge of equity market investor anxiety, hit a three-week low. The euro traded at $1.2297, off Thursday's low of $1.2266 but below a one-month high of $1.2444 hit on Monday. The euro was pressured on Thursday by the European Central Bank's monthly bulletin which said there were downside risks to the euro zone's economic outlook, with financial market tensions and their potential impact on the real economy posing the main concerns. While the euro has remained resilient despite the risk of the euro zone debt crisis deepening, its failure in its recent rally to sustain a break above key resistance at the 55-day moving average, now around $1.2400, prompted traders to lock in gains. The euro has also benefited from investors and traders reducing their dollar long positions ahead of the summer holidays, said Yuji Saito, director of foreign exchange at Credit Agricole Bank in Tokyo. "There are reasons to be concerned, but a lack of fresh factors or comments from key European figures to prompt further euro selling has led traders to adjust their positions," he said. - Reuters
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