Business Blog Posts

European shares are expected to open lower, extending losses for the fourth session, hurt by concerns over Ireland's debt woes and a sell-off in metal prices.

Bargain hunting in early Asian trade quickly gave way to more selling as Chinese stocks .SSEC struggled following a 5.2 percent slide on Friday, when fears China will lift rates gripped markets.

Analysts expect more market volatility toward the year-end as Chinese authorities are seen taking further steps to keep in check liquidity in the financial system.

"An imminent interest rate rise after recent bank reserve increase is still very likely," said a trader at a Shanghai securities house.

Reversing earlier gains, the MSCI index of Asia Pacific stocks outside Japan .MIAPJ0000PUS fell 0.7 percent to reach lows not seen since November 1. On Friday, the index slid 1.9 percent to post its biggest one-day percentage fall since late June.

There was also little clarity on Ireland's funding problems after the country did not rule out the possibility it may have to turn to Europe for help in dealing with its debt crisis, but said no application had been made for assistance yet.

Markets drew no comfort from the G20 and APEC meetings, which left leaders of the world's most powerful economies little closer to agreeing on how to prevent fresh crises.

Many analysts said markets had been due for a pullback regardless, as profit taking set in after a two-month-long rally and traders prepared to close their books heading into the year-end.

Australia's S&P/ASX 200 index .AXJO slipped 0.1 percent, Hong Kong's Hang Seng index .HSI shed 0.2 percent while the Shanghai Composite Index .SSEC was up 0.2 percent, having drifted in and out of negative territory.

Japan's Nikkei average .N225, however, climbed 1.1 percent as exporters such as Canon Inc (7751.T) benefited from a weaker yen and data showing Japan's economic growth accelerated in the third quarter spurred investors to buy on dips.

BHP Billiton (BHP.AX) fell 0.4 percent as investors took profits on earlier gains after the top global miner scrapped its $39 billion bid for Potash Corp (POT.TO) and said it would return $4.2 billion to investors through a share buy-back.

Some investors also described the buy-back as modest.

U.S. YIELDS CLIMB

The dollar reversed losses against a basket of major currencies .DXY, climbing 0.2 percent after the 10-year Treasury note yield rose to a two-month high at 2.823 percent.