Dollar Hits 14-Year Low Vs Yen, Gold at New High

HONG KONG (Reuters) - The dollar slumped to a 14-year low against the yen on Thursday, helping gold scale another record high, while Asian stocks faltered as investors digested a mixed batch of economic data.

Gold punched above $1,192.60 an ounce on expectations more central banks will buy the precious metal. Its strength was also a reflection of expected prolonged weakness in the dollar, which has already lost more than 8 percent against major currencies this year and is heading for its biggest yearly slide in six years.

On Thursday the dollar slumped to a 14-year low against the yen below 87 yen, as deputy Japanese finance minister Yoshihiko Noda told Reuters that Tokyo was not planning to intervene in the market, and hit a 15-month low against a basket of major currencies <.DXY>.

The yen's strength continued to put pressure on shares of Japanese exporters. Japan's Nikkei <.N225> share index was flat but hit a four-month low in early trade and analysts said sentiment remained weak after the government said last week that the economy was back in deflation.

"The Japanese market is also experiencing the double whammy of a strong yen and the government's deflation declaration," said Fumiyuki Nakanishi, manager at SMBC Friend Securities in Tokyo.

"Deflation could ultimately lead to a downward revision in earnings forecasts as lower prices put a lid on corporate sales and dampen profitability."

PHILIPPINE GDP DISAPPOINTS

Equity markets across Asia were subdued as U.S. markets will be closed for the Thanksgiving holiday and as investors digested mixed economic data.

Encouraging U.S. jobless claims and home sales data supported the Dow Jones <.DJI>, which edged up 0.3 percent on Wednesday, but trading volumes were the lightest this year ahead of the holiday, and there was disappointment too as U.S. durable goods orders unexpectedly fell last month.

The MSCI index of Asia Pacific stocks traded outside Japan <.MIAPJ0000PUS> was down 0.2 percent while the Thomson Reuters index of regional shares was 0.6 percent lower.