SINGAPORE, Dec 29 - Asian markets mostly shrugged off a suspected SARS case in China on Monday and took their lead from gains on Wall Street, while the dollar hovered near recent lows in thin trade. China said on Saturday the country's first suspected SARS case in months had surfaced in Guangdong province where the disease first emerged in 2002, prompting investors in Hong Kong to take profits on stocks. The Hang Seng Index <.HSI> fell 0.9 percent. Japanese stocks <.N225> had risen 1.3 percent to 10,556.11 by the midday break, lifted by Sharp Co <6753.T>, which rose 1.5 percent after a report that it planned to boost spending on LCD production. "There is a consensus forming that Japanese stocks are lagging behind overseas markets and due to rise," said Ken Masuda, a senior equities dealer at Shinko Securities. "Mad cow seems to have had little impact on Wall Street and the dollar appears to be holding its ground on the yen." U.S. officials, grappling to control an incident of mad-cow disease, on Sunday expanded the recall of more than 10,000 pounds of beef to eight mostly western states and Guam. An MSCI index of Asia Pacific shares outside Japan <.MSCIAPJ> was up 0.2 percent at 0215 GMT near a three-year high hit earlier this month. Australia <.AXJO> was up 0.5 percent, shares in Taiwan <.TWII> slipped 0.5 percent and South Korea fell 0.2 percent. Shares in Singapore <.STI> edged up 0.3 percent. Japan's market is open for a half day on Tuesday before closing for the New Year holiday until January 5.
DOLLAR MIRED NEAR LOWS
The dollar, weighed down by a huge current account deficit and security concerns in Iraq, was steady around 107.35 yen, off a three-year low of 106.74 yen hit earlier this month. Market players are hesitant to drive the dollar below 107 yen for fear it could prompt Japanese intervention to protect an export-led economic recovery. Against the euro, the dollar stood at $1.2428 , flat from late U.S. trade and not far from its record high around $1.2470 hit last week. On Friday, the Dow Jones industrials <.DJI> ended up 0.19 percent at 10,324.67, while the technology-heavy Nasdaq <.IXIC> rose 0.20 percent in a shortened holiday session . U.S. Treasuries were steady in Asia, with the benchmark 10-year Treasury note yielding 4.16 percent, against 4.15 percent in New York. Japanese government bonds softened, with the benchmark 256th 10-year bond <0#JPTSY=JBTC> up four basis points for a yield of 1.350 percent. The weak dollar pushed gold slightly higher to $412.40 an ounce compared with $411.65 in New York on Wednesday. U.S. oil fell 29 cents to $32.57. There was no U.S. trading of precious metals or oil on Friday.//