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 Most share markets in the region stayed in the red with Tokyo off
0.6 percent <.N225>, Sydney <.AXJO> 0.45 percent and Shanghai 0.2
percent <.SSEC>.
MSCI's broadest index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> pared its losses but was still down 0.2 percent.
Liquidity was lacking with U.S. markets closed on Monday for a
holiday. Neither was there much of a lead from Wall Street where the
Dow <.DJI> ended last week with a slim gain of 0.1 percent, while
the S&P 500 <.SPX> lost 0.2 percent for the week.
China's annual economic growth slowed a tick to 7.7 percent last
quarter, which was just ahead of market forecasts for 7.6 percent
and at least countered fears that monetary tightening could have
caused a sharper pullback.
"The economy may be a little more robust than people thought coming
into 2014," said Tim Condon, an economist at ING Group in Singapore.
"I had thought the monetary tightening in 2013 would pose a downside
risk. The numbers reduce that downside risk."
The other data out were much in line with forecasts, with retail
sales growing 13.6 percent in December from a year earlier, while
industrial output rose 9.7 percent.
That resilience was considered a positive for Australia given China
is its single biggest export market, and helped the Australian
dollar clamber off a three-year trough of $0.8756 to reach $0.8797.
Yet the Australian currency remains out of favor having shed 2.4
percent last week due to disappointing domestic data and demand for
U.S. dollars and yen.
In contrast, the U.S. dollar gained 0.9 percent last week against a
basket of major currencies <.DXY> on expectations the Federal
Reserve will stick with plans to scale back its bond buying at a
policy meeting later this month.
The yen had been in demand on Monday as general mood of risk
aversion led speculators to cut back on short positions, which has
been a very popular trade for months now.
The euro was particularly affected, dropping to a six-week low at
one stage before steadying at 140.65 yen. The dollar eased to 103.97
yen from an early 104.32.
The Bank of Japan holds its policy meeting on Tuesday and Wednesday
and is expected to maintain its massive asset buying program.
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DEUTSCHE HIT BY FINES
Deutsche Bank <DBKGn.DE> started the week by reporting a surprise
pre-tax loss of 1.15 billion euros for the fourth quarter of 2013
due to heavy costs for litigation, restructuring and balance sheet
reduction.
The bank was originally scheduled to report its results on January
29, but the Wall Street Journal on Friday reported that a profit
warning was possible.
The unexpected loss is likely to compound the problems that have
dogged the bank over the past year, especially a lengthening list of
lawsuits and regulatory matters, and redouble pressure on co-chief
executives Anshu Jain and Juergen Fitschen to prove their turnaround
plan is on track.
Deutsche Bank's U.S.-listed shares closed down 3 percent at $52.27
on Friday.
The EU's quarterly earnings season goes up a gear this week. STOXX
Europe 600 <.STOXX> companies are seen missing consensus by 0.4
percent on revenues and by 0.9 percent on earnings, according to
StarMine SmartEstimates, which focuses on the predictions by the
most accurate analysts.
In commodity markets, spot gold made an early push to a five-week
peak of $1,259.46 an ounce, thanks in part to talk of strong
physical demand from Asia.
Brent crude oil for March delivery was off 21 cents at $106.27 a
barrel, while U.S. crude fell 59 cents to $93.78.
(Editing by Richard Pullin and Kim Coghill)
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