Asia stocks stay near highs, though Tokyo slides; dollar slips

TOKYO: Asia stocks stayed closed to a decade-long peak on Thursday following another record-breaking day on Wall Street, though Japan's Nikkei slid back from a 26-year high in volatile trading, hit by profit-taking.

The dollar slipped amid uncertainty over the fate of the US tax reform plans, while the New Zealand dollar rallied as hawkish-sounding statements by the country's central bank boosted the recently-battered currency.

Spreadbetters expected Britain's FTSE to open 0.2 per cent lower, Germany's DAX to open down 0.03 per cent and a flat start for France's CAC.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent and in close reach of a 10-year high set the previous day, taking cues from overnight Wall Street gains.

Australian shares rose 0.55 per cent and to their highest level since January 2008. South Korea's KOSPI, which had a succession of record highs in past weeks, handed back earlier gains and was flat.

Shanghai dipped 0.1 per cent and Hong Kong's Hang Seng climbed 0.6 per cent.

Japan's Nikkei initially surged 2 per cent to reach a high not seen since January 1992 but reversed course and ended the day down 0.2 per cent.

"There were no news that drove the Nikkei lower. The market was looking increasingly lofty after surging in the morning and sellers emerged in the futures, which spilled over into the cash market," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

"The market was beginning to look very rich and there were profits to be locked in."