SINGAPORE, Aug 26 - Asian stock markets fell across the board on Tuesday after losses on Wall Street, while the dollar was firm against both the yen and the euro. India's share markets were yet to open after devastating bomb blasts in Bombay on Monday killed 46 people, but analysts said trading would start on schedule at 0425 GMT and that stocks were likely to resume an upward trek. The Bombay Sensitive Index <.BSESN> closed 2.92 percent down on Monday after the blasts rocked a bullion market and the landmark Gateway of India, but has risen almost 42 percent since April. "Foreign funds could stay off for a few days, but this is clearly not an incident that will drive them away because the fundamental story in India is still strong," said Arun Kejriwal, director at independent research firm KRIS in Bombay.
Tokyo shares <.N225> were 0.71 percent down at 10,203.28 at midsession, and technical analysts saw more falls. "This weakness is driven by the rising yen and the lower finish on Wall Street," said Hiroaki Kuramochi, head of global equities at Credit Lyonnais. "The Nikkei looks poised to fill the gap between 10,050 and 10,150. There is a good possibility it will do that today," he added, referring to a gap left on the Nikkei's daily chart during last Tuesday's upward move. The Dow <.DJI> fell 0.33 percent on Monday, and with few local factors to trade on, Asian markets followed suit. Markets in Australia <.AXJO>, Singapore <.STI>, Hong Kong <.HSI>, Malaysia <.KLSE>, Philippines <.PSI> and Korea <.KS11> were all down. Taiwan shares <.TWII> plunged two percent in early trade, retreating from over 14-month highs after local tech shares were pressured by losses in U.S. counterparts.
The euro plumbed four-month lows against the dollar and five-month lows against the yen, weighed down by expectations that Europe would lag the already recovering U.S. and Japanese economies. But the yen, the main beneficiary of the euro's recent weakness, pulled back after rising briefly early in the day, shying away from Monday's one-month highs against the dollar on wariness of possible intervention by Japanese authorities. "At these levels, people have to be worried about intervention and the market gets a little jumpy," said Hiroyuki Watanabe, a manager at Shinsei Bank. "I think the decline in dollar/yen has pretty much run its course, given it had been driven by euro/yen selling and the U.S. economic outlook is strong. But the weakness in the yen crosses, particularly against the euro, may continue for while."
The euro fell to five-month lows around 126.75 yen , down about three-quarters of a yen from late Monday levels, before recouping some of the losses. At 0035 GMT, it was trading at 127.51/54 yen. The dollar was trading at 117.55 yen after testing the 117 area. The euro also hit four-month lows against the dollar around $1.08 . Crude prices ticked down as profit-taking continued after a gasoline-led rally last week. Front-month October crude was quoted at $31.52 a barrel at 0220 GMT, down four cents from Monday's settlement in New York, where the contract lost 28 cents. Gold prices were flat, watching the dollar for direction after a long liquidation in New York cancelled a brief safe-haven rally on the Bombay bombings. Spot gold was fetching $361.00/1.50 an ounce at 0225 GMT against $361.00/50 last quoted in New York.//