Shinzo Abe, Japan’s incoming Prime Minister and the leader of Liberal Democratic Party (LDP), walks past his portrait after attending a meeting at the LDP headquarters in Tokyo. The yen dipped against the euro and the dollar after Abe again called on the central bank to take further steps to ease monetary policy, warning he would change the law to make sure it followed his instructions.

AFP/Tokyo


Asian markets rose in quiet pre-Christmas trade yesterday after big losses in the previous session as US lawmakers remain deadlocked in talks to avert the fiscal cliff.
The yen dipped against the euro and the dollar after Japan’s incoming prime minister again called on the central bank to take further steps to ease monetary policy, warning he would change the law to make sure it followed his instructions.
With many markets open for just half a day Hong Kong closed 0.16% higher, adding 34.89 points to 22,541.18, Sydney added 0.25%, or 11.6 points to 4,635.2 and Seoul was flat, edging up 1.40 points to 1,981.82.
Shanghai was 0.27% higher, adding 5.74 points to 2,159.05.
Tokyo, Manila and Jakarta were closed for public holidays.
In other markets; Singapore was up 0.16%, or 5.01 points, at 3,168.57; Wellington, which was open for just half a day, closed flat, edging up 3.08 points to 4,057.82; Taipei ended flat, edging down 4.62 points to 7,535.52; Kuala Lumpur rose 0.64%, or 10.55 points, to close at 1,669.40, while Bangkok added 0.18% or 2.44 points to 1,375.82.
Regional gains came despite losses on Wall Street Friday as Capitol Hill broke up for Christmas without an agreement to avoid the huge tax hikes and spending cuts due to take effect in just over a week.
If the $600bn package comes into effect and a less painful budget to cut the nation’s deficit is not agreed, economists say it will tip the US into recession, which would have a knock-on effect for the world economy.
Investors were hit after House Speaker John Boehner late Thursday scrapped a vote on a bill that would have extended tax cuts for all Americans earning less than $1mn even if a wider deal could not be struck.
The move, which he described as his “Plan B”, was dropped because he did not have enough support. He said his party would recess until after Christmas.
The dollar improved yesterday against the yen after Shinzo Abe stepped up pressure on the Bank of Japan Sunday to set a 2% inflation target.
The prime minister-elect told Fuji Television the bank’s policy board must back his proposed 2% inflation goal in January and warned failure to do so would mean he would amend the law that sets out its duties and guarantees its independence.
The Japanese unit has already come under pressure as Abe, whose conservative Liberal Democratic Party won a landslide election earlier this month, has said he will push the BoJ to carry out more aggressive easing measures.
In Asian trade the euro bought ¥111.34, compared with ¥110.05 late Friday in New York, while it was also at $1.3197 from $1.3181.
The dollar fetched ¥84.37, up from ¥84.25.