SINGAPORE, Jan 21 - Asian share markets edged higher on Wednesday after buying of U.S. tech stocks pushed the Nasdaq to two-and-a-half year highs, while pressure on oil prices intensified on supply fears. The dollar edged up against major rivals in choppy trade after a sharp pullback against the euro on Tuesday as doubts reemerged about Europe's resolve over curbing the ascent of the single currency. Investors were awaiting a European Central Bank (ECB) governing board meeting, due on Thursday, and were looking for clues about the direction of U.S. economic and foreign policy from President George W. Bush's televised "State of the Union" address, which began at 0210 GMT. Against the yen, the dollar recovered after pulling back more than one yen on Tuesday following a brief rally to around 107.90 yen in the wake of Japan's surprise monetary easing. "After the Bank of Japan's easing, everyone is watching closely what the ECB will do," said Takashi Toyahara, forex manager at Nomura Securities.
By 0230 GMT the euro bought $1.2570 , almost flat from the late-trading level in New York and the dollar cost 107.18 yen , up slightly from 107.03/11 yen. Japan's Nikkei average clawed higher, rising 0.22 percent at 11,127.44 by the midday break, erasing early losses as investors looked for bargains and bought Sharp Corp <6753.T> and other issues with bright earnings prospects. Hong Kong and Singapore shares gained in holiday-shortened sessions. The Straits Times Index <.STI> rose 0.88 percent to 1881.78 and the Hang Seng Index <.HSI> built on sharp gains in the previous session, rising 1.25 percent to 13,738.97. Chinese GDP grew a stronger than expected 9.9 percent in the fourth quarter of 2003, data showed on Tuesday, reinforcing hopes Chinese growth will buoy the regional economy. NYMEX crude oil futures ended 3.2 percent higher in New York after climbing to new 10-month peaks amid forecasts of extremely cold weather ahead for most of the U.S. and renewed supply fears after a huge blast at an Algerian liquefied natural gas plant on Tuesday.
NYMEX February crude , on its last day as prompt month, surged $1.13 in New York. NYMEX March crude edged 12 cents lower to 34.75 in Asia. Some analysts noted February crude's high of $36.37 now becomes the resistance target for March crude. Spot gold was steady at $411.25 an ounce in Asia compared with $412 last quoted in New York after having breached the $410 resistance a day earlier as the euro rebounded against the U.S. dollar. The next resistance was pegged at $420 an ounce.
TECHS TOPPING OUT?
The blue-chip Dow ended lower on Tuesday after earnings from manufacturing heavyweights 3M Co and United Technologies Corp disappointed investors, but strength in technology stocks lifted the Nasdaq to a new two-and-a-half year high. Tech leaders Motorola Inc , and chip makers RF Micro Devices Inc , Advanced Micro Devices Inc and PMC-Sierra Inc all fell in after-hours trading after releasing earnings news that was seen as not strong enough to justify current prices. The Dow Jones industrial average <.DJI> ended down 0.68 percent at 10,528.66. The Nasdaq Composite Index <.IXIC> added 0.35 percent, to 2,147.98. Stock markets in South Korea, Taiwan and China were closed for the lunar new year. MSCI's index of share markets outside of Japan was 0.17 percent higher. A pullback in some major miners such as Rio Tinto kept Australian stocks under pressure, although the stronger gold and oil prices buoyed producers of those commodities. National Australia Bank continued to slip as investors revised their outlook for the nation's largest bank following recent announcements of losses from unauthorised forex trades. It fell 1.6 percent to a seven-week low of A$29.06. The benchmark S&P/ASX 200 index <.AXJO> was down 0.22 percent to 3,301.5.//