Dollar gains in Asia

TOKYO: The dollar rallied in Asia Thursday after solid Chinese data and minutes from the Federal Reserve´s April policy meeting that showed it would forge ahead with a cautious wind-down of its stimulus programme.

In Tokyo, the greenback rose to 101.71 yen, up from 101.38 yen late in New York and much stronger than the 100.90 yen level touched in Tokyo earlier Wednesday.

The euro also gained on the Japanese currency at 139.07 yen, up from 138.76 yen in US trade, as Tokyo´s benchmark Nikkei stock index added more than 2.0 percent by the close on upbeat sentiment.

The European single currency also slipped to $1.3673 from $1.3686 as investors bet the European Central Bank will ease monetary policy next month to shore up the 18-nation eurozone economy. Traders were more bullish after an HSBC survey showed Chinese manufacturing activity sharply improved in May, hitting a five-month high and helping to ease concerns about the world´s number two economy.

The recovery in Chinese data "suggests that downward pressure on the manufacturing sector has eased markedly", Capital Economics said.The Chinese yuan rose to 16.28 yen from 16.19 yen Wednesday afternoon.

Investors tend to buy the yen, seen as a safe-haven currency, in times of uncertainty or turmoil and sell it when those concerns ease.

"The market has turned to a risk-on mode," Yuji Kameoka, chief FX strategist at Daiwa Securities, told Dow Jones Newswires.

"If the economic recovery spreads on a worldwide basis, the yen is vulnerable to weaken."