January 04, 2013-Stocks Look to a Flat Start on Fiscal Deal Concerns

Asian stocks fell broadly on Friday on speculation the U.S. Federal Reserve may end its $85bn monthly bond buying program earlier than expected. According to minutes of the Fed's last meeting, "a few members expressed the view that ongoing asset purchases would likely be warranted until about the end of 2013" while "several others thought that it would probably be appropriate to slow or to stop purchases well before the end of 2013, citing concerns about financial stability or the size of the balance sheet". Investors also awaited U.S. employment data due later in the global day, with analysts expecting the report to show a gain of 155,000 jobs in December, while the unemployment rate is expected to tick back up to 7.8 percent after falling to a nearly four-year low of 7.7 percent in November. Japan's Nikkei index jumped to a 22-month high as stocks played catch-up with a two-day global rally in the wake of the last-minute U.S. budget deal. The Nikkei average soared 2.8 percent to its highest closing level since March 4, while the broader Topix index added 3.3 percent. Exporters led the gainers, after the yen dropped to its lowest level against the dollar since July 2010. The yen also weakened against the euro on expectations of further monetary easing by the Bank of Japan.