Asian shares pull back from 3-week highs

FE Team | Published: February 14, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

TOKYO, Feb 13 (Reuters): Asian shares stepped back from three-week highs on Thursday, snapping a five-session winning streak that was underpinned by receding concerns about global growth prospects and reassurance over US monetary policy.
There was also an element of caution, with some investors restraining bullish instincts until they see more solid evidence of a strengthening global economy.
European shares are seen slipping, with both Germany's DAX and Britain's FTSE expected to fall as much as 0.3 per cent.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent after having gained 4.5 per cent in the previous five sessions. Japan's Nikkei fell 1.8 per cent after a 4.6-per cent rise in the past three days.
Markets are still sitting on solid gains that stem from relief over the continuity in Federal Reserve policy and pressure coming off emerging markets.
Janet Yellen, made it clear on last Tuesday, in her first public remarks since becoming Fed chair, that she would not make any abrupt changes to monetary policy.
Adding to the positive mood, Congress approved legislation on Wednesday to increase the US government's debt limit for a year, avoiding chances of a repeat of the political showdown that led to government shutdown in October.
Yet recent US data, including two straight months of weak jobs growth, have raised questions over whether the world's biggest economy can sustain the strength it showed in the second half of last year.
"There are emerging doubts about whether you can just blame all the soft data on the weather," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
"Investors are a bit bewildered. While they are relieved that major events are out of the way, they are still hesitating to chase shares higher," he added.
Doubts could intensify if further data falls short of market expectations, although traders admit there is a chance the market could write off any soft reading as a one-off aberration due to the severity of the winter in the United States.
Next up on the data front are January retail sales and weekly jobless claims data, both due to be released at 1330 GMT.