SINGAPORE, Oct 3 - Asian share markets edged higher on Friday while the dollar weakened against the yen on persistent doubts about the strength of an economic recovery in the U.S., Asia's biggest export market. Foreign exchange traders were wary of intervention by Japanese authorities as the dollar drooped to 110.68 yen , towards three-year lows around 110.10 yen, with traders cautious ahead of the closely watched U.S. employment report for September due out at 1230 GMT. "As we near 110 yen, the market naturally gets anxious about possible intervention," said Junya Tanase, global markets officer at JP Morgan Chase in Tokyo. At 0225 GMT the euro was at $1.1693, near three-month lows around $1.1770. Japan's Nikkei average <.N225> clung to opening gains, to be up 0.38 percent, while MSCI's dollar-based index of Asian markets outside of Japan <.MSCIAPJ> was 0.3 percent higher.
Singaporean shares were the star performers, jumping nearly two percent after news of an IPO for a firm part owned by Southeast Asia's largest telecoms firm, SingTel . A rise in oil prices in New York lured investors to mineral and oil producers such as Teikoku Oil Ltd <1601.T>, which was up 6.09 percent, but profit-taking hit Japanese real estate and insurance firms, which had ratcheted higher this week on hopes for a steady recovery in the Japanese economy. NYMEX crude oil futures inched higher in Asia as the market became wary about chasing prices aggressively beyond $30 after the Kuwaiti oil minister said OPEC may not need to tighten production extensively. Key crude futures rose to a one-month high of $29.98, and by late in the morning the November contract was up three cents at $29.86 a barrel in electronic ACCESS trade compared with the New York close. "The market is expecting to test $32, but recent rises have clearly been too rapid," said Koji Suzuki, manager at Tokyo-based brokerage Itochu Futures Corp.
FOLLOWING WALL STREET
The minor gains on most Asian share markets mirrored Wall Street where the Dow Jones <.DJI>, the Nasdaq <.IXIC> and the S&P <.SPX> indices were all about two-tenths of a percent higher. Singapore's Straits Times Index <.STI> gained 1.79 percent after news of an IPO in Belgian telecoms operator Belgacom, 12.15 percent owned by SingTel. Hong Kong stocks opened slightly higher but global clothing retailer Esprit Holdings Ltd <0330.HK> fell six percent after its chairman agreed to sell part of his stake in the firm. The benchmark Hang Seng Index <.HSI> was up 0.5 percent at 11,611.66. Taiwan's main TAIEX <.TWII> gained 0.6 percent to 5,733.78 following Thursday's two percent rise that bounced off a one-month low. Tokyo's Nikkei average <.N225> was at 10,633.56, while the broader TOPIX index <.TOPX> was up 0.34 percent at 1,060.80. South Korean markets were on holiday. Gold was slightly higher, mainly driven by strength in the yen. But dealers said the bullion market was cautious ahead of the release of the U.S. employment report. Spot gold was trading at $383.50 an ounce.//