[EURO DOLLAR TAKES RARE LEAD IN ASIA AS STOPS TRIPPED] Euro-dollar took a rare turn in the driving seat during Asian trade, moving higher after stops were tripped at $0.8950/60. Traders said the main buyers were US investment banks and noted some look for a break of $0.90 as the euro achieves a firm tone despite recent strength in US equities. Meanwhile, dollar-yen held in a range as Japanese traders returned to the "Golden Week" holidays and with good orders seen either side of a Y121.30/60 range. * [JAPANESE MARKETS CLOSED FOR GOLDEN WEEK HOLIDAYS] Japanese traders returned to the Golden Week holidays today and will return to work on Monday. * [AUSTRALIAN PM DISMISSES CALLS FOR STONE RESIGNATION] PM Howard has reportedly dismissed calls for the resignation of Liberal Party President Shane Stone. He has also noted his full support for Treasurer Costello following the row over the leaked memo from earlier this week. The private memo from Stone to Costello had attacked the government for being out of touch as well as mean and tricky following heavy losses for the party in the Queensland election. The memo also directly attacked Costello. FROM THE U.S. ON WEDNESDAY * [PENTAGON CORRECTS ITSELF,DOES NOT CUT MILITARY TIES WITH CHINA] The Pentagon corrected itself late Wednesday, and instead of suspending military contacts with China, put them under review as a sign of annoyance at Beijing's failure to return the U.S. spyplane downed March 31. Earlier the Pentagon had said such contacts were suspended for the third time since 1989 but then said an aide has misinterpreted the Defense Secretaries intention. The Federal Reserve's latest survey of economic conditions around the nation, the "beige book," yielded a picture of continued slow growth, but seemingly not further wide-scale deterioration. In fact, the beige book, released Wednesday, cites scattered signs of modest improvement in economic conditions in some regions and sectors. Not surprisingly, the manufacturing sector comes off looking the weakest in the Fed survey findings, but the survey found signs of improvement in consumer spending and continued strength in housing. The report, which was based on information collected by the 12 Federal Reserve Banks before April 23 and summarized by the St. Louis Fed, will be reviewed at the May 15 meeting of the Fed's policymaking Federal Open Market Committee.