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Bitcoin hovers near record highs

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Dollar steady as traders eye Fed dot plot

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Yen on the defensive as BOJ seen to hold rates

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Gold set for best year since 2010

(Updates to Asia afternoon)

By Ankur Banerjee

SINGAPORE, Dec 17 (Reuters) - Asian stocks wobbled while

the dollar held firm on Tuesday as traders braced for a slate of

central bank meetings this week that is likely to see the U.S.

Federal Reserve deliver a rate cut and the Bank of Japan stand

pat for now.

Bitcoin, the best-known and the biggest

cryptocurrency, remained nestled near the record high of

$107,821 it touched on Monday. It was last at $106,572.

The crypto market has been on a tear since the U.S. election

in early November as traders wager the incoming Trump

administration will usher in a friendlier regulatory

environment. Bitcoin is up 150% in 2024.

In stock markets, Australian shares rose 0.82%, with

Japan's Nikkei down 0.15% and tech-heavy Taiwan stocks

0.3% higher.

That left MSCI's broadest index of Asia-Pacific shares

outside Japan down 0.3%. Still, the index is set

for a 10% gain for the year, its strongest yearly performance

since 2020.

Futures indicated a subdued opening for European stock

markets, with Eurostoxx 50 futures down 0.16%, German

DAX futures off 0.06% and FTSE futures 0.24%

weaker.

Data on Monday showed China's consumption slowed more than

expected in November, pushing stocks lower. On Tuesday, Hong

Kong's Hang Seng Index fell 0.6%, while mainland stocks

eased 0.57%.

"More stimulus measures are desperately needed," said Tony

Sycamore, market analyst at IG, noting that China's housing

market remains fragile despite recent policy support.

"However, those measures are unlikely to come until after

the details of U.S. tariffs China are revealed early next year,"

Sycamore said.

Chinese leaders agreed last week to raise the budget deficit

to 4% of gross domestic product next year, its highest on

record, while maintaining an economic growth target of around

5%, two sources with knowledge of the matter told Reuters.

Over in South Korea, the Kospi was down 0.57%,

taking its yearly losses to about 7%, making it Asia's worst

performing market this year.

The market has been under pressure amid political turmoil in

the country with President Yoon Suk Yeol impeached and suspended

from his duties on Saturday over his short-lived attempt to

impose martial law.

EYES ON CENTRAL BANKS

On the policy front, central banks in the United States,

Japan, UK, Sweden, Norway, Indonesia and Thailand all meet this

week, with the BOJ, the Bank of England, Norges Bank and Bank of

Thailand expected to stand pat, while the Riksbank is seen

cutting rates.

Bank Indonesia on the other hand is expected to hike

interest rates to support the rupiah, which is rooted

near its lowest in four months.

The spotlight will be on the Fed and especially on the

projection for next year with markets pencilling in a 25-basis-

point cut on Wednesday.

After the cut on Wednesday, markets see about a 37% chance

there will be either one 25 bp cut or none at all through the

whole of 2025, according to the CME FedWatch tool, up from about

21% a week earlier.

Charu Chanana, chief investment strategist at Saxo, said the

market will be watching for any signs of a "hawkish cut."

"This means that while the Fed is easing policy, it could

signal caution about the pace of future cuts, either through the

committee's updated dot plot or via Chair Powell's press

conference."

The previous dot plot indicated four rate cuts (100 bps) for

2025, but this could be revised to just three or even two cuts

as inflation risks remain elevated, Chanana said.

The dollar index, which measures the U.S. currency

against six rivals, was steady at 106.88 and on course for 5%

gain for the year.

The yen last fetched 154.11 per dollar and

remained on the defensive as chances of a hike from the BOJ this

week remained slim, with a majority of economists polled by

Reuters expecting the central bank to hold interest rates.

In other currencies, the euro stood at $1.050775,

on course for a near 5% drop in 2024. Sterling was

steady at $1.26775.

In commodities, oil prices were little changed as investors

fretted about Chinese demand ahead of the Fed meeting.

U.S. West Texas Intermediate crude was down 0.11% at

$70.63 a barrel, while Brent crude futures eased 0.04%

to $73.88 a barrel.

Spot gold was 0.1% lower at 2,650.38 per ounce, on

course for 29% rise in 2024, its strongest year since 2010.