Currency Volatility Falls Before U.S. Jobs Amid Ukraine Tensions

A gauge of currency swings slid for a second day as traders monitor the Ukraine crisis and before the U.S. reports figures for February employment tomorrow.

The yen fell to a one-week low yesterday versus the dollar as Russian and U.S. diplomats met in Paris to discuss the crisis in Ukraine. The dollar maintained losses against a basket of major peers after a private report showed hiring rose less than forecast, adding to concern harsh winter weather hampered economic growth. The euro held a decline versus the pound before the European Central Bank meets today.

Deutsche Bank AG’s index measuring three-month implied volatility for nine major currency pairs, which is still trading, fell eight basis points to 7.50 percent. A decline would mark a second day of losses following a nine basis point drop on March 4.

The yen was little changed at 102.36 per dollar as of 8:42 a.m. in Tokyo after touching 102.55 yesterday, the weakest since Feb. 26. It traded at 140.56 per euro from 140.49. Europe’s 18-nation currency was little changed at $1.3732. The euro bought 82.15 pence after losing 0.4 percent to 82.13.

The Bloomberg Dollar Spot Index retreated yesterday for the first time in three sessions, falling 0.1 percent.

(Source: Bloomberg)          

Asian Stocks Drop as China Manufacturing Gauge Falls

Asian stocks fell, dragging the regional benchmark index down from an almost one-month high, after a Chinese manufacturing index dropped more than estimated.

Newcrest Mining Ltd., an Australian gold producer, lost 4.8 percent in Sydney as futures on the precious metal slid. Naver Corp. (035420) sank 5.9 percent in Seoul amid concern an expansion at WhatsApp Inc. following its acquisition by Facebook Inc. would curb sales at the South Korean Internet site. China Petroleum & Chemical Corp. surged 6.9 percent in Hong Kong after Asia’s biggest oil refiner said it’s seeking private investors.

The MSCI Asia Pacific Index lost 1 percent to 136.15 as of 10:23 a.m. in Hong Kong, as all 10 industry groups declined. A preliminary reading for a Purchasing Managers’ Index fell to a seven-month low, a report today showed, adding to signs of a factory slowdown that will limit growth. The International Monetary Fund, in a staff report prepared for central bankers and finance ministers from the Group of 20, said yesterday “significant downside risks remain” for the world economy.

(Source: Bloomberg)

Most Asia Stocks Fall Led by Consumer Shares; Bridgestone Sinks

Most Asian stocks fell, with the regional benchmark index sliding from a three-week high, as consumer companies led declines.

Panasonic Corp., the consumer-electronics maker pivoting toward products for cars and homes after record losses, lost 2.1 percent in Tokyo. Bridgestone Corp. dropped 3 percent after the Japanese tiremaker forecast slower-than-expected full-year profit growth. CapitaLand Ltd. fell 1 percent in Singapore after Southeast Asia’s biggest developer reported a 46 percent decline in fourth-quarter profit. Seek Ltd. jumped 19 percent in Sydney after the online hiring company reported an increase in first-half profit and said a unit will acquire a rival website.

The MSCI Asia Pacific Index slipped 0.2 percent to 137.28 as of 11:15 a.m. in Tokyo, falling for the first time in four days. About five shares fell for every four that rose on the gauge. The market value of global equities rose to $62.1 trillion on Feb. 17, above the level reached at the end of December, data compiled by Bloomberg show.

Japan’s Topix (TPX) fell 0.4 percent today on volume that was 14 percent below the 30-day intraday average. The gauge rose the most in the five months yesterday after the Bank of Japan doubled a growth funding facility.

South Korea’s Kospi index slid 0.4 percent. China’s Shanghai Composite Index dropped 0.3 percent, while Hong Kong’s Hang Seng Index lost 0.1 percent. Taiwan’s Taiex index was little changed. Australia’s S&P/ASX 200 Index (AS51) rose 0.3 percent and New Zealand’s NZX 50 Index added 0.1 percent. Singapore’s Straits Times Index climbed 0.5 percent.

(Source: Bloomberg)