Asian shares hit high, dollar steady before Fed
By Lisa Twaronite
TOKYO (Reuters) – Asian shares touched a six-and-half-year peak on Wednesday and the dollar was steady, with investors waiting for second quarter U.S. growth data as well as a U.S. Federal Reserve meeting that some believe might yield a more hawkish policy outlook.
Output fell 3.3 percent in June, the fastest rate since the devastating earthquake and tsunami in March 2011, as companies put on the brakes due to a pile-up in inventories. But manufacturers expect output to rise in the coming months.
On Wall Street overnight, a weak outlook from courier company United Parcel Service triggered a broad selloff, pushing the S&P 500 below its 14-day moving average for a second straight day.
Still, almost 70 percent of the S&P 500 companies that have reported already have topped earnings expectations, according to Thomson Reuters data, which is well above the long-term average of 63 percent. More than half of companies have reported results, and over 63 percent of them have topped revenue forecasts, above the long-term average of 61 percent.
FED ON DECK
Later on Wednesday, the Fed is expected to cut its monthly bond-buying program by another $10 billion.
Also later in the session, the Commerce Department is expected to report that the economy grew at a 3.2 percent annual pace in the second quarter, after it shrank 2.9 percent in the previous quarter.
On Friday, the Labor Department's key nonfarm payrolls are expected to rise by 231,000 in July after an increase of 288,000 in June. The jobless rate is expected to hold steady at 6.1 percent.
That helped the dollar rise to eight-month highs against the euro, which extended the drop as low as $1.3403 in Asian trade and was last steady at $1.3407.
Against the yen, the dollar was steady on the day at 102.12 after it broke above the 102 level on Tuesday for the first time since early July.
The dollar index, which tracks the U.S. unit against a basket of six major rivals, was last at 80.225, after touching a six-month high of 81.245 on Tuesday as the euro cratered.
U.S. crude edged up around 0.1 percent on the day to $101.07 a barrel after touching an intraday low of $100.37 on Tuesday, its lowest since mid-July.
Spot gold was steady at $1,299 an ounce after slipping 0.5 percent and breaking below the key $1,300 level in the previous session.