RPT-GLOBAL MARKETS-Dollar up on Geithner, stocks struggle

* Dlr up as Geithner suggests currencies roughly in

* Nikkei helped by dollar, but dips at the close

* China GDP data shows Q3 growth ebbed but still strong

* Markets waiting on G20 finance leaders’ meeting
(Repeats to more subscribers)

By Sugita Katyal

SINGAPORE, Oct 21 (BestGrowthStock) – The dollar rose on Thursday
after U.S. Treasury Secretary Timothy Geithner said ahead of a
G20 meeting that major currencies were roughly in alignment,
initially offering support to Japanese stocks.

However, Tokyo shares reversed course by the close as the
dollar’s gains eased and Europe picked up the weaker cue to
open lower. Major stock indexes in Britain, Germany and France
fell 0.2 percent to 0.4 percent at the start of trade.

A batch of China data, which showed a slowdown in economic
growth to a still healthy level, had little impact on markets
following the country’s surprise rate rise earlier in the week.

Speculation of a grand bargain by the Group of 20 to
rebalance the global economy is swirling, with G20 finance
leaders meeting on Friday in South Korea to tackle the thorny
issue and find a common path ahead of a leadership meeting in
Seoul next month. [ID:nTOE69K01G]

The Wall Street Journal on Thursday said Geithner had
suggested in an interview that he saw no need for the dollar to
sink further against the euro and the yen. The news prompted
the dollar, which has been in a downtrend for several weeks, to
spike half a yen and climb rapidly against the euro.

The dollar rose as far as 81.84 yen (JPY=: ) but quickly
pulled back to 81.20 yen, up just 0.1 percent on the day. Early
in the session, it had dipped to 80.98 yen, close to a 15-year
trough and nearing a record low at 79.75 yen set in 1995.

The dollar rise boosted hopes for Japan’s exporters,
helping to lift the benchmark Nikkei average (.N225: ) into
positive territory. However, it later closed down a slight 0.05
percent for its lowest close in three weeks as the dollar came
off its highs.

“Today’s moves showed how nervous investors were about the
yen’s strength,” said Yumi Nishimura, deputy general manager at
Daiwa Securities Capital Markets.

“Chinese economic data was roughly within expectations, and
few people expect the country will have another rate hike soon,
but Shanghai stocks are down and external factors are
influencing Japanese stocks,” Nishimura said.

The MSCI index of Asia shares outside of Japan
(.MIAPJ0000PUS: ) rose 0.4 percent as gains in consumer durables
and health care offset a drag from financials and telecoms.


Data from China showed the world’s fastest growing major
economy touched the brakes in the third quarter. Annual GDP
growth eased to 9.6 percent from 10.3 percent in the second
quarter. Inflation ticked higher and overall the data was
broadly in line with expectations.

The Shanghai stock market (.SSEC: ) briefly turned positive
after the data but quickly surrendered the gains and closed
down 0.7 percent as investors took profits on bank shares.

China Mobile’s (0941.HK: ) lacklustre third-quarter results
put a dampener on the telecom sector in Hong Kong, pulling
shares of the world’s biggest mobile operator and those of its
rivals lower. [ID:nTOE69H07H]

Hong Kong’s Hang Seng index (.HSI: ) was trading up 0.5

Gold edged up in volatile trade off the back of the China
data, which helped offset pressure from the dollar’s firmer
tone. Spot gold (XAU=: ) added 30 cents to $1,343.80 an ounce.

Oil slipped 0.5 percent to $82.15 per barrel.
(Editing by Neil Fullick)

RPT-GLOBAL MARKETS-Dollar up on Geithner, stocks struggle