By Louise Heavens
SINGAPORE, March 26 (Reuters) - Asian share markets mostly
fell on Wednesday, with Japan down nearly 1 percent, and the
dollar sagged after the biggest drop in U.S. consumer
confidence in five years cast doubt on the economy's resilience
in the face of a housing and credit slump.
The dollar's fall sparked a rally in commodity and oil
prices, and also lifted bonds, as investors took refuge in
safer assets on concern the weak U.S. consumer outlook could
exacerbate the housing market.
Metals, mining and oil companies rose, including Japan's
Sumitomo Metal Mining <5713.T>, and Australia's Woodside
Petroleum <WPL.AX>, helping some resource-heavy indexes, such
as Australia's S&P/ASX 200 <> notch up a slim gain.
"There was a good rebound in commodities and that gave a
bit of confidence back, but fresh worries about the health
condition of the U.S. market will always be there," said
Lucinda Chan, division director at Macquarie Equities in
Sydney.
"The U.S. is obviously in recessionary mode, much as they
would like to think otherwise. There is light at the end of the
tunnel but it is still a little bit cloudy."
On Wall Street on Tuesday, the Dow Jones industrial average
<> dipped 0.1 percent and the Nasdaq Composite Index
<> added 0.6 percent.
A Conference Board report showed U.S. consumer confidence
fell sharply in March, raising concerns Americans are
tightening their purse strings. [].
Japan's Nikkei <> index -- heavy with exporters, such
as Canon Inc <7751.T> -- fell 0.9 percent by the midsession on
concerns about weaker demand for its products.
Manufacturers, including television maker LG Display
<034220.KS> and Hyundai Motor <005380.KS>, were also weaker in
South Korea, although its benchmark index managed to notch up a
0.1 percent gain.
Markets in Singapore <.FTSTI> and Taiwan <> also fell
initially but recouped in late morning trade.
MSCI's index of Asian shares outside Japan <.MSCIAPJ>
hovered in and out of the red and by 0153 GMT was up 0.2
percent. The index is still down 14 percent this year.
GOLD GLEAMS
A weakening dollar sparked interest in a range of
commodities that had been sold off last week. Despite a weaker
U.S. consumer outlook, analysts gauge that global demand for
many commodities remains intact.
Gold extended gains, with spot prices <XAU=> rising to
$940.50/941.50 an ounce from $934.60/935.40 late in New York on
Tuesday, although prices remain below an all-time high of
$1,030.80 on March 17.
U.S. crude oil futures advanced, helped by the falling
dollar and weakening stocks, with U.S. crude for May delivery
<CLc1> up 61 cents at $101.84.
The dollar dipped to 99.74 yen <JPY=> from near 100.00 yen,
while the euro was little changed from late U.S. trade at
$1.5638 <EUR=>, having risen 1 percent against the dollar on
Tuesday.
The dollar had gradually pulled up from record lows against
the euro and a 13-year low versus the yen in the past week as
investors have hoped the worst of the financial crisis stemming
from the United States may be over after the collapse of
investment bank Bear Stearns <BSC.N>.
Japanese government bond futures extended their gains, with
June futures <2JGBv1> up 0.53 points at 141.03.
