LONDON/NEW YORK, 11 March 2004 — The dollar shrugged off a widening in the US trade deficit for January yesterday and climbed sharply against the euro on the improved US position with the European Union. The single currency in late-day deals was trading at 1.2226 dollars after 1.2315 late Tuesday in New York. Against the yen the dollar slipped to 110.91 from 111.29 on Tuesday.

Sterling’s fall against the dollar continued, with the pound dropping below 1.80-dollars for the first time since Jan. 21. Meanwhile, the dollar was static around the 111-yen mark. Markets remain wary that the Bank of Japan may once again move to stem the yen’s rise with purchases of the US currency, especially before the close of the Japanese fiscal year at the end of March.

US technology stocks drifted near the unchanged mark, flitting around the psychologically sensitive 2,000 level, looking to stem three sessions of losses.

The Dow Jones industrial average was down 18.44 points, or 0.18 percent, at 10,437. The Standard & Poor’s 500 Index was down 3.30 points, or 0.3 percent, at 1,137. The technology-laced NASDAQ Composite Index was down 0.75 of a point, or .04 percent, at 1994.46.

Asian stock markets fell on profit-taking in technology shares sparked by a retreat on Wall Street.

The NASDAQ’s losses came as investors in the United States turned defensive ahead of the 12-month mark of the bull market, leading to similar activity on Asian markets despite resilience in some sectors.

Japanese share prices closed down 0.86 percent in heavy trading after losses on Wall Street but managed to finish off the lows.

Hong Kong share prices closed lower as investors locked in profits in the blue chips, with Cathay Pacific Airways slipping even as it reported better-than-expected 2003 results. The Hang Seng Index fell through support at 13,300 to close down 183.05 points or 1.37 percent at 13,214.20, off a low of 13,312.00.

Singapore share prices closed 0.54 percent lower on profit-taking in index heavyweight Singapore Telecommunications (SingTel) and technology stocks. The Straits Times Index closed down 10.18 points at 1,875.02, while the broader All Singapore Equities Index fell 2.4 points to close at 505.2.