A/O 21:00 PST, Dow futures screens read +25 points.
Japan's Nikkei average fell 1 percent on Friday, dented by metal stocks after gold prices were hit by strength in the dollar, while a soft profit outlook from U.S. economic bellwether FedEx also weighed on the market. Banking shares such as Mizuho Financial gave up some of this week's big gains as the expected announcement of stricter global bank standards by 2012 prompted profit-taking, market analysts said. In light trade, the Nikkei 225 slipped 104.06 points to 10,059.74. It dipped 0.1 percent the previous day, after having risen to its highest level in seven weeks at one stage. The broader Topix declined 0.9 percent to 888.69.
Hong Kong shares are set to fall for a fourth day in a row on Friday, slipping 0.87 percent, dragged down by banking stocks after regulators said lenders will have to set aside more profit or even raise capital protection under tough new proposals. Index heavyweight HSBC was indicated lower at 1.59 percent. Its London-listed shares fell 3.5 percent on Thursday. Standard Chartered was indicated lower at 2.46%. The benchmark Hang Seng Index was set to open down 185.2 points at 21,162.43, while the China Enterprises Index of mainland Chinese stocks was set to open down 0.86 percent at 12,393.18.
BUCK & BASEL:
The dollar rose to its highest level against the euro in more than three months on Thursday, a day after the Federal Reserve drew attention to the improvement in the U.S. economy and stood by plans to wind down most of its emergency lending by February. Resource-linked shares slid after gold prices fell 3 percent the previous session, pressured by the dollar's strength, while world oil prices fell broadly also as U.S. unemployment claims rose.
Seeking to prevent a repeat of this year's financial crisis, the Basel Committee of central bankers and financial supervisors on Thursday demanded higher requirements for the capital which banks maintain to shield depositors and shareholders from loss. Banks had surged on Wednesday when three sources said that the committee would stick to its plan to gradually implement changes starting in 2012 but will give banks a transition period to help them adjust to the rules. The Basel bank regulators want the changes to take effect by the end of 2012, but they may be postponed if the global economy is still struggling at the time, the committee's spokesperson said.
T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com 
