SINGAPORE, Dec 11 - The dollar rebounded from three-year lows against the yen on Thursday, boosting auto and high-tech exporters such as Canon Inc <7751.T> after suspected intervention by the Bank of Japan. Gold slipped after the dollar recovered, while platinum hovered around 23-year highs. NYMEX crude failed to sustain recent gains despite a larger-than-expected drop in weekly U.S. oil stocks. Japan's Nikkei 225 <.N225> index was up 0.4 percent at 9,951.34 by midday, lifted by Canon, which was up more than one percent, and Nissan <7201.T>, which rose two percent. The index, up more than 15 percent this year, rebounded from a more than two percent fall on Wednesday. Elsewhere in North Asia, the focus is shifting to the IPO in Hong Kong of China Life to raise up to $3.03 billion, the world's biggest IPO this year. The offering has helped whip the market for China shares listed in Hong Kong into a frenzy. It is expected to be priced early on Friday.
Other Asian stock markets were mixed. An MSCI index of Asia Pacific shares outside Japan <.MSCIAPJ> was down 0.2 percent at 0215 GMT. "The dollar recovered 108 yen on the back of intervention, prompting investors to cover short positions built up over the past few days," said Minoru Tada, director at World Nichiei Securities. "Battered blue chips are staging a rebound." Dealers estimate the Bank of Japan could have bought up to $5 billion to protect an export-led economic recovery. Exports of goods and services make up about 10 percent of Japan's economic growth and the U.S. market is the biggest single destination for Japanese shipments. The dollar, which has been weighed down by a ballooning current account deficit and security concerns in Iraq, was fetching 108.28 yen compared with a three-year low of 106.74 yen hit earlier this week and 108.36 in late U.S. trade. The yen has risen around 10 percent against the dollar since the end of March. The euro stood at $1.2200 versus $1.2217 as investors took profits after it rose to record highs versus the dollar for eight consecutive sessions.
JAPAN, U.S. DATA AWAITED
On Wall Street, the Dow Jones Industrials <.DJI> was flat as investors pocketed recent gains ahead of November retail sales on Thursday. The technology-heavy Nasdaq <.IXIC> slipped 0.19 percent. U.S. Treasuries edged higher despite tepid demand for new five-year notes as traders were comforted by solid foreign interest in the bond issue. Most Japanese government bond (JGB) prices rose marginally, recovering from early losses as gains in stocks were pared despite a drop in the yen. Market players were focusing on the Bank of Japan's quarterly "tankan" survey of of business sentiment on Friday which is expected to be positive for big firms. Shares in Taiwan <.TWII> and South Korea <.KS11> were up about 0.5 percent. In Australia, gains in media giant News Corp failed to offset losses in globally exposed miners, leaving the index <.AXJO> down 0.2 percent at midday. Hong Kong <.HSI> was flat just after the open. Japan's benchmark 256th-year cash bond <0#JPTSY=JBTC> was yielding 1.305 percent, down half a basis point from Wednesday. The United States' benchmark 10-year note was up 9/32 for a yield of 4.32 percent from 4.35 percent on Tuesday. Oil was at $31.86 a barrel after soaring to $32.63, its highest level since November 20, before settling at $31.88 in New York. Spot gold was quoted at $404.75/405.50 an ounce by 0100 GMT compared with $405.80/406.30 last quoted in New York, while platinum was quoted at $807.00/812.00 an ounce compared with $808.00 last quoted in New York.//