DUBAI

Asian stocks slumped on Friday as the Dubai-debt shockwaves hit the region, shaking banking shares and pushing the yen to a fresh 14-year high against a struggling dollar as investors unwound risky trades.

Japanese consumer price index excluding volatile food and energy prices slid in the year to October at the fastest rate since 2001 with increasing signs that weak demand is weighing on prices, while a tumbling dollar adds to price pressures.

Dubai struggled to ease fears of debt default on Thursday after its move to delay repayments at two flagship firms shook confidence in the Middle East as a center for investment and a source of capital.

The Australian Dollar opens lower today at 0.9140 after a volatile local session on Thursday. The Aussie's foray above US93 cents due to a weak greenback was short-lived after the release of third-quarter capital expenditure data which fell 3.9 per cent. The unit fell sharply to an intraday low of 0.9230 ahead of a move back up to 0.9245 heading into European trade. In offshore trade, the unit moved between a high of 0.9245 down to 0.9100 on renewed risk aversion, however volumes were far thinn...

Dubai struggled to ease fears of debt default on Thursday after its move to delay repayments at two flagship firms shook confidence in the Middle East as a center for investment and a source of capital.

UK bank Lloyds' army of small investors grilled executives for over three hours on Thursday over secret central bank loans and mistakes made during the crisis, but agreed to back a record-breaking rights issue.

Debt problems in Dubai struck financial markets hard on Thursday, sinking global stocks, lifting safe-haven bonds and driving the dollar higher.

Debt problems in Dubai hit financial markets across the board on Thursday, sinking global stocks, helping lift safe-haven bonds and taking the dollar up from a 14-year low against the yen.

Dubai struggled to ease fears of debt default on Thursday after its move to delay repayments at two flagship firms shook confidence in the Middle East as a center for investment and a source of capital.

Lloyds Banking Group investors on Thursday overwhelmingly approved the bank's record rights issue but gave executives a grilling for mistakes made during the financial crisis.

European banks were hit by concern about potential exposure to debt problems in Dubai on Thursday, while companies where Middle Eastern investors own big stakes also came under pressure.

Shares in banks, builders and companies part-owned in the Middle East fell around the world on Thursday and investors sought safety in government bonds on worries about Dubai's ability to pay its debts.

The dollar edged up from 14-year lows against the yen on Thursday as renewed risk aversion prompted investors to shed riskier assets, giving pause to broad dollar selling.

Abu Dhabi is not going to crow publicly over Dubai's troubles. But it will use the opportunity to assert control over its upstart neighbour. The price for Abu Dhabi's help could be prize assets like airline Emirates. Dubai has little choice but to do what it is told.

Debt problems in Dubai hit global stocks, helped lift bonds and took the dollar away from a 14-year low against the yen on Thursday.

A dollar bond sale by Saudi-backed Gulf International Bank (GIB) was pulled after Dubai's move to delay repayment on billions of dollars of debt owed by its two flagship firms, sources said on Thursday.

Debt problems in Dubai hit global stocks, helped lift bonds and took the dollar away from a 14-year low against the yen on Thursday.

The dollar rebounded from a 14-year low against the yen on Thursday as traders betting against the dollar seized on the broad risk reduction prompted by Dubai's debt problems to cash in on its recent slide.

Dubai's debt problems shook European banking shares on Thursday despite the emirate's efforts to minimize the impact of a debt restructuring plan at two of its biggest companies that raised fears of default.

Debt problems in Dubai weighed on stocks, helped lift bonds and stirred currency trades on Thursday, as the dollar hit a 14-year low against the yen and gold climbed to a new record high.

Dubai said on Wednesday two of its flagship firms planned to delay repayment on billions of dollars of debt as a first step toward restructuring Dubai World, the conglomerate that spearheaded the emirate's breakneck growth.