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The euro was steady against the dollar and rose against the yen, though sovereign credit rating risks were just below the surface. Standard & Poor’s cut its outlook on Spain to negative, two days after Fitch downgraded Greece’s debt rating.
Hong Kong stocks rose 1 percent in midmorning trading, standing out in an otherwise quiet session, after China said it would extend to next year efforts to increase domestic consumption.
The Nikkei share average in Japan was steady, though it was up 4.7 percent on the month. It has outperformed the Standard & Poor’s 500-stock index, which has been flat in December.
A 3.8 percent fall in the shares of Suzuki Motor was a drag on the Nikkei as dealers questioned the stock’s high valuation despite optimism surrounding an alliance with Volkswagen.
Indeed, Suzuki is trading at about 1.5 times its 12-month forward book value, above the industry average of 1 times, Thomson Reuters Starmine shows.
“We believe the firm will benefit from the technology alliance with Volkswagen, but anticipation of tie-up news has already driven its valuation,” said Noriaki Hirakawa, a Morgan Stanley analyst.
The MSCI index of Asia-Pacific stocks outside Japan edged up 0.4 percent, with the energy sector providing the biggest lift.
Currency markets were dominated by news about the Australian and New Zealand dollars.
The Australian dollar rose 0.75 percent to $0.9151, near the middle of a $0.89 to $0.94 range carved out in the last two months.
Employment data showed Australia’s economy in November generated 31,200 jobs, exceeding a median forecast of a gain of 5,000, and the unemployment rate fell to 5.7 percent. The data supported the case for more interest rate increases by Australia’s central bank.
The New Zealand dollar gained 0.8 percent to $0.7246 after the Reserve Bank of New Zealand signaled it could start raising interest rates as early as April next year.
U.S. crude for January delivery rose 46 cents to $71.13 a barrel after settling at a two-month low Wednesday, down for six straight sessions.
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