Asian stocks skid as euro stands tall

Asian Stock Markets

Asian stocks stumbled on Wednesday after weaker crude oil prices took a toll on Wall Street, while the euro kept big gains after enjoying a boost from robust German economic growth. 

Spreadbetters tipped opening losses for Britain's FTSE .FTSE of 0.1 percent, a 0.25 percent decline for Germany's DAX .GDAXI and France's CAC .FCHI is seen down 0.15 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.6 percent. 

China's Shanghai index .SSEC was down 0.55 percent, Australian stocks dropped 0.6 percent and 

South Korea's KOSPI .KS11 shed 0.4 percent. Japan's Nikkei .N225 lost 1.5 percent.

Lifted by steady economic growth, supportive monetary policies and solid corporate earnings, global equities have rallied hard, with those in the United States, Germany and South Korea scaling record heights recently, while Japan’s Nikkei climbed a 26-year peak.

All three major U.S. stock indexes dipped on Tuesday as an extended drop in crude oil prices hit energy shares and as General Electric (GE.N) plunged for a second straight day. [.N]

The euro stood little changed at $1.1787 EUR= after rising 1.1 percent overnight to a 2-1/2-week high of $1.1805 as data showed Germany's economy shifted into a higher gear in the third quarter.

Pressured by the euro’s surge, the dollar index against a basket of six major currencies lost about 0.7 percent overnight. It last stood flat at 93.870. .DXY. The greenback was 0.2 percent lower at 113.230 yen JPY= after pulling back from a high of 113.910 the previous day.

Financial markets, which are betting the Federal Reserve will hike interest rates in December, will be looking for clues to gauge how many more rate increases could be in store next year. 

Crude oil prices stretched losses, weighed by forecasts for rising U.S. crude output and a gloomier outlook for global demand growth in a report from the International Energy Agency (IEA). [O/R]  U.S. crude futures CLc1 were down 1.1 percent at $55.07 per barrel and on track for their fourth day of losses. Brent lost 1.3 percent to $61.42 per barrel LCOc1. With oil prices having slid steadily from 28-month highs scaled last week, commodity currencies came under pressure.

The Canadian dollar stood at C$1.2740 CAD=D4 per dollar after weakening to a one-week low of C$1.2773 overnight.

The Australian dollar faced additional headwinds after Wednesday’s data showed the country’s wages did not rise as much as expected last quarter. The Aussie AUD=D4 fell about 0.7 percent to a four-month trough of $0.7576.