Asia shares climb on U.S. optimism, oil pressured before OPEC

Tue Nov 25, 2014 10:20pm EST
 
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By Shinichi Saoshiro

TOKYO (Reuters) - Asian stocks edged up on Wednesday after upbeat U.S. economic growth data calmed investor anxiety over a deteriorating global outlook, while the Australian dollar languished near four-year lows against the dollar.

Oil prices were also under pressure as major oil producing nations failed to agree on curbs to output ahead of an OPEC meeting on Thursday.

The U.S. government upgraded its reading on third quarter gross domestic product to 3.9 percent on Tuesday from 3.5 percent reported last month. Economists polled by Reuters had expected growth would be cut to 3.3 percent.

"The gap between actual and estimated third quarter GDP was a big one, but what is of increasing import is the gap between the economy of the U.S. and the rest of the world especially Europe and Japan," Jasper Lawler, analyst at CMC Markets, said in a note.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.3 percent. Australian shares .AXJO rose 0.9 percent after

Mainland Chinese shares hit fresh three-year highs, helped by last Friday's rate cuts from the People's Bank of China while Tokyo's Nikkei .N225 retreated 0.1 percent, weighed by the yen's bounce.

The 10-year U.S. Treasuries yield dropped to one-month low of 2.252 percent US10YT=RR, as strong auction results, month-end buying and an unexpected drop in U.S. consumer confidence offset the encouraging GDP news.

That also helped the dollar put some distance from a seven-year high against the yen .   Continued...

 
A pedestrian looks at an electronic board showing Japan's Nikkei average (top 2nd from L) and various stock prices outside a brokerage in Tokyo November 11, 2014.  REUTERS/Yuya Shino