By Tom Miles
HONG KONG, Feb 18 (Reuters) - Asian stocks drifted lower on
Monday as weak U.S. consumer data sparked fresh concerns over
the spending power of the American shopper, while oil traded
above $95 a barrel and other commodities tested, and in some
cases, broke, record highs.
The dollar was steady against the yen and the euro, with
all eyes on a raft of U.S. economic indicators this week for
further clues on the health of the world's top economy as the
credit market turmoil plays out. The Aussie dollar hit a
three-month high on its hefty yield advantage.
After an optimistic start, Japan's Nikkei average <>
gave away early gains to close just 0.1 percent higher. MSCI's
measure of Asian stocks outside Japan <.MIAPJ0000PUS> fell 0.3
percent by 0600 GMT.
"It seems perhaps as if the downside's firming up and the
Nikkei now may slowly rise," said Takeshi Osawa, senior fund
manager at Norinchukin Zenkyoren Asset Management.
But Osawa said the Nikkei could slip again in coming months
if the yen advances strongly against the dollar or companies
post poor full-year results.
Among the gainers in Japan were Toshiba Corp <6502.T> and
Sony Corp <6758.T>, which jumped after a Toshiba source told
Reuters it would concede defeat in the high-definition DVD
format war, avoiding a costly marketing battle.
Steelmakers Nippon Steel Co <5401.T> and JFE Holdings Inc
<5411.T> also rose after agreeing to a 65 percent price rise
for iron ore, cementing a cost that could have been worse.
"The market was relieved now that one of the negative
factors weighing on the shares had been played out," said
Takashi Aoki, vice president at the equity investment division
at Mizuho Asset Management.
But the iron ore price hike was less well-received in South
Korea, where POSCO Co Ltd <005490.KS>, the world's
fourth-largest steel maker, gave up earlier gains to close down
0.2 percent.
Australian iron ore miners Fortescue Metals Group Ltd
<FMG.AX>, Mount Gibson Iron <MGX.AX>, Murchison Metals Ltd
<MMX.AX> jumped about 5 percent on the news, but the reaction
from bigger rivals Rio Tinto <RIO.AX> and BHP Billiton <BHP.AX>
was muted, falling 2.3 percent and 0.8 percent respectively.
AUSSIE BANK WOES
Australia's benchmark S&P/ASX 200 index <> fell 0.9
percent, dragged down by news of more problems in the banking
sector [], to rack up 12.3 percent of losses since
the start of the year.
Australia and New Zealand Banking Group Ltd's <ANZ.AX>
shares slid after the country's third-biggest lender warned it
may face a $200 million hit on its exposure to a U.S. bond
insurer.
Seoul stocks<> ended flat, while Singapore's stock
market <.FTSTI> and Hong Kong's Hang Seng <> were both
lower.
Raw materials price pressures have plagued stocks for
months, and supply problems continued to buoy oil and commodity
metals.
U.S. crude prices broke above $95 a barrel, up 16 cents at
$95.66 by 0614 GMT, egged on by Venezuelan President Hugo
Chavez, who said on Sunday the state could sue U.S. oil major
Exxon Mobil <XOM.N> for unpaid taxes, and repeated threats to
cut oil sales if the United States attacked his country.
[]
Precious metal platinum <XPT=>, used to tackle emissions in
car exhaust fumes, breezed to an all-time high for the 13th day
in a row, while palladium <XPD=> raced in pursuit, notching up
a seven-year record.
"In Japan, many automobile companies are very nervous about
future platinum prices," said Yukuji Sonoda, precious metals
analyst at Daiichi Commodities in Tokyo. "They will increase
stocks for another two or four months."
The dollar was little changed against the yen <JP=> and the
euro <EUR=> as many investors awaited further clues on the
health of the U.S. economy.
With U.S. markets off for Presidents Day holiday on Monday,
traders are looking to pointers this week from the minutes of
the January meeting of the Federal Reserve's policy makers,
data on January inflation, and a regional Fed gauge of factory
activity in February from the U.S. mid-Atlantic region.
Profit reports from top retailer Wal-Mart Stores Inc
<WMT.N> and Hewlett-Packard Co <HPQ.N>, both slated for release
on Tuesday, could provide new insight on consumer sentiment.
But traders said the dollar was finding some support on
gains in Asian stock markets as well as hopes that the Federal
Reserve's rate cuts and the newly enacted fiscal stimulus
package could rekindle U.S. economic growth later this year.
(Additional reporting by Kim Soyoung in SEOUL; Elaine Lies,
Taiga Uranaka and Satomi Noguchi in TOKYO; Fayen Wong in
SYDNEY; Lewa Pardomuan in SINGAPORE; Editing by Louise
Heavens)
