* Dollar climbs after Yellen's upbeat labour market comments
* European markets poised for flat to lower start
* Gold down as Fed comments offset Berlin, Ankara attacks'
* Oil slides as investors take profits ahead of holidays
By Nichola Saminather
SINGAPORE, Dec 20 The yen edged down on Tuesday
after the Bank of Japan held policy steady, shedding some gains
made following killings in Germany and Turkey, while regional
stocks were mixed after Federal Reserve Chair Janet Yellen's
European stocks were also poised to open mixed, with
financial spreadbetter CMC Markets predicting Britain's FTSE 100
and Germany's DAX will open little changed, and
France's CAC 40 will start the day about 0.2 percent
The BOJ maintained its pledge to guide short-term rates at
minus 0.1 percent and the 10-year government bond yield around
zero percent, while offering a more upbeat view of the economy
than in its Nov. 1 assessment.
Stating that the economy continues to recover moderately as
a trend, the central bank signalled its conviction that a
generally weak yen and a rebound in overseas demand will lift
prospects for a solid recovery.
The U.S. dollar advanced 0.6 percent to 117.89 yen, after
closing 0.7 percent lower on Monday.
The greenback has risen 12 percent versus the yen since
Donald Trump's surprise election victory, on his promises of
increased fiscal stimulus.
Trump formally won the U.S. presidency on Monday after
receiving more than the 270 Electoral College votes required to
MSCI's broadest index of Asia-Pacific shares outside Japan
shed earlier gains to trade down 0.2 percent.
Volumes were low in some markets ahead of year-end holidays.
Japan's Nikkei, flat before the BOJ decision, ended
the day up 0.5 percent.
"There was no particular surprise from the policy meeting,
but investors are happy that the economy's fundamentals are
finally rising after the BOJ expressed an upbeat view of the
economy," said Takuya Takahashi, a strategist at Daiwa
China's CSI 300 index slid 0.6 percent, as
Beijing's move to tighten supervision of shadow banking
activities and persistent liquidity concerns restrained risk
appetite. Hong Kong stocks dropped 0.5 percent.
Wall Street ended higher on Monday, albeit below the
session's highs, as optimism over Yellen's comments about the
U.S. labour market offset some of the risk aversion following
the deaths in Germany and Turkey, and a shooting attack in a
mosque in Switzerland.
"Yellen painted a very positive picture in her commentary
overnight," said James Woods, global investment strategist at
Rivkin Securities in Sydney.
"The (Federal Open Market Committee) has done a fantastic
job preparing the market for this second and subsequent hikes.
Importantly they have continued to stress that the FOMC remains
data dependent, only hiking when the underlying fundamentals of
the economy support this."
Still, markets were rattled after a truck ploughed into a
crowded Christmas market in central Berlin Monday evening,
killing 12 people and injuring 48 others.
Berlin police said on Twitter on Tuesday that investigators
assume the truck was driven into the crowd intentionally in a
suspected terrorist attack, and that a Polish man found dead in
the truck was not controlling it.
The euro, which slid 0.5 percent to $1.0401 on
Monday, extended losses to trade 0.15 percent lower at $1.03855
Pressure also came on the euro after the Russian ambassador
to Turkey, Andrei Karlov, was shot and killed at an art gallery
in Ankara, the capital.
The Turkish lira recovered 0.3 percent to 3.5196 per dollar
on Tuesday after falling 0.7 percent on Monday. The rouble was
steady at 61.8926 per dollar. It slumped to as low as 62.0907
per dollar on Monday but recovered to end the day up 0.3 percent
In Switzerland, a man stormed into a Zurich mosque on Monday
evening and opened fire on people praying, injuring three, Swiss
The safe haven Swiss franc remained resilient, holding
steady at 1.068 per euro, following a 0.4 percent gain on
The dollar index, which tracks the greenback against
a basket of six global peers, climbed 0.2 percent to 103.37 on
Tuesday, extending Monday's 0.2 percent gain after Yellen's
upbeat labour market assessment.
Gold, which rose 0.4 percent on Monday, pulled back
0.3 percent to $1,135.06 an ounce, as the prospect of further
U.S. rate hikes outweighed geopolitical concerns.
Oil prices also eased as traders began to unwind positions
in the run-up to the holiday season.
U.S. crude slid 0.4 percent to $51.91 per barrel.
Global benchmark Brent slipped 0.2 percent to
(Reporting by Nichola Saminather; additional reporting by Ayai
Tomisawa in Tokyo; Editing by Eric Meijer and Richard Borsuk)