Asian stocks edged higher on Tuesday and the dollar remained under pressure against the euro as investors prepared for U.S. earnings reports that could determine whether Wall Street's share rally continues.
Top shares closed up three-quarters of a percent in Japan, while an index of stocks elsewhere in the region notched up a three-year high as gains in Singapore helped offset losses in Hong Kong.
A fourth day of gains for U.S. shares on Monday prompted a mild rally in Asia as investors awaited economic data and company results for evidence on whether the recent equity rally was justified.
Quarterly earnings reports from Dow industrial average companies begin on Tuesday with results from aluminum producer Alcoa Inc
Stock and currency traders alike said the focus was moving to U.S. corporate earnings.
"We're expecting fairly good figures," said Junya Tanase, global markets officer at JP Morgan Chase in Tokyo. "But such figures may only add to the bullishness in Japanese shares instead of helping the dollar. The correlation between U.S. stock prices and the dollar has not been very high lately."
The dollar retained losses incurred against the euro on Monday, when it fell one percent after European Central Bank President Wim Duisenberg said the dollar's decline was "unavoidable."
The U.S. currency was trading around $1.1711 per euro at 0600 GMT, a touch weaker from late U.S. trade. Concerns about intervention by Japanese authorities shackled the dollar at around 111 yen.
KDDI JUMPS
Japan's Nikkei average closed up 0.75 percent at 10,820.33. A dollar-based MSCI index of shares elsewhere in the Asia Pacific was up 0.2 percent after rising to its highest level since September 2000 early in the day.
Investors optimistic about Japan's economic prospects snapped up KDDI Corp and other domestic-oriented stocks relatively immune to the strong yen.
KDDI rose 5.9 percent after the telecoms carrier said on Monday that per-user revenue at its "au" mobile unit between July and September was higher than expected.
Hong Kong's Hang Seng Index ended midday down two-thirds of a percent at 11,655.15. Henderson Land Development Co. Ltd. tumbled eight percent after it announced a share sale to raise nearly $385 million.
But Singapore shares showed solid gains for a second day on brighter economic forecasts by the government and analysts.
The Straits Times Index was up 0.6 percent at 1,727.61 at midday after rising as much as 1.6 percent to levels not seen since May 2002.
"Foreign funds came in because they felt comfortable that global growth is improving. That has given them the confidence to take a bet on Singapore and position themselves ahead of a confirmation in economic growth and recovery in the city state," said Steven Lim, fund manager at Daiwa SB Singapore.
Singapore's economy should see growth of three to five percent in 2004 but unemployment will worsen at the end of this year, Deputy Prime Minister Lee Hsien Loong said on Tuesday.
Benchmarks elsewhere advanced less than 0.1 percent in Australia and Taiwan and gained half a percent in South Korea.
Gold rose to $373.95 an ounce from $372.45 at the U.S. close, with traders citing an expected rise in demand ahead of holiday seasons in Asia. U.S. light crude oil was off five cents at $30.42 a barrel, below one-month highs.
Top shares closed up three-quarters of a percent in Japan, while an index of stocks elsewhere in the region notched up a three-year high as gains in Singapore helped offset losses in Hong Kong.
A fourth day of gains for U.S. shares on Monday prompted a mild rally in Asia as investors awaited economic data and company results for evidence on whether the recent equity rally was justified.
Quarterly earnings reports from Dow industrial average companies begin on Tuesday with results from aluminum producer Alcoa Inc
Stock and currency traders alike said the focus was moving to U.S. corporate earnings.
"We're expecting fairly good figures," said Junya Tanase, global markets officer at JP Morgan Chase in Tokyo. "But such figures may only add to the bullishness in Japanese shares instead of helping the dollar. The correlation between U.S. stock prices and the dollar has not been very high lately."
The dollar retained losses incurred against the euro on Monday, when it fell one percent after European Central Bank President Wim Duisenberg said the dollar's decline was "unavoidable."
The U.S. currency was trading around $1.1711 per euro at 0600 GMT, a touch weaker from late U.S. trade. Concerns about intervention by Japanese authorities shackled the dollar at around 111 yen.
KDDI JUMPS
Japan's Nikkei average closed up 0.75 percent at 10,820.33. A dollar-based MSCI index of shares elsewhere in the Asia Pacific was up 0.2 percent after rising to its highest level since September 2000 early in the day.
Investors optimistic about Japan's economic prospects snapped up KDDI Corp and other domestic-oriented stocks relatively immune to the strong yen.
KDDI rose 5.9 percent after the telecoms carrier said on Monday that per-user revenue at its "au" mobile unit between July and September was higher than expected.
Hong Kong's Hang Seng Index ended midday down two-thirds of a percent at 11,655.15. Henderson Land Development Co. Ltd. tumbled eight percent after it announced a share sale to raise nearly $385 million.
But Singapore shares showed solid gains for a second day on brighter economic forecasts by the government and analysts.
The Straits Times Index was up 0.6 percent at 1,727.61 at midday after rising as much as 1.6 percent to levels not seen since May 2002.
"Foreign funds came in because they felt comfortable that global growth is improving. That has given them the confidence to take a bet on Singapore and position themselves ahead of a confirmation in economic growth and recovery in the city state," said Steven Lim, fund manager at Daiwa SB Singapore.
Singapore's economy should see growth of three to five percent in 2004 but unemployment will worsen at the end of this year, Deputy Prime Minister Lee Hsien Loong said on Tuesday.
Benchmarks elsewhere advanced less than 0.1 percent in Australia and Taiwan and gained half a percent in South Korea.
Gold rose to $373.95 an ounce from $372.45 at the U.S. close, with traders citing an expected rise in demand ahead of holiday seasons in Asia. U.S. light crude oil was off five cents at $30.42 a barrel, below one-month highs.
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