Changing of the Guard: Corrupt Chinese Officials Draw Unusual Publicity





BEIJING — The Chinese have become largely inured to tales of voracious officials stockpiling luxury apartments, $30,000 Swiss watches or enough stolen cash to buy their mistress a Porsche.




But when images of a bulbous-faced Communist Party functionary in southwest China having sex with an 18-year-old girl spread on the Internet late last month, even the most jaded citizens took note — as did the local party watchdogs who ordered his dismissal.


These have been especially nerve-racking times for Chinese officials who cheat, steal and bribe. Since the local bureaucrat, Lei Zhengfu, became an unwilling celebrity here, a succession of others have been publicly exposed. And despite the usual cries of innocence, most have been removed from office while party investigators sort through their bedrooms and bank accounts.


In the weeks since the Communist Party elevated a new slate of top leaders, the state media, often fed by freelance vigilantes, have been serving up a head-spinning collection of scandals.


Highlights include a deputy district official in Shanxi Province who fathered 10 children with four wives; a prefecture chief from Yunnan with an opium habit who managed to accumulate 23 homes, including 6 in Australia; and a Hunan bureaucrat with $19 million in unexplained assets who once gave his young daughter $32,000 in cash for her birthday.


“The anticorruption storm has begun,” People’s Daily, the party mouthpiece, wrote on its Web site this month.


The flurry of revelations suggests that members of China’s new leadership may be more serious than their predecessors about trying to tame the cronyism, bribery and debauchery that afflict state-run companies and local governments, right down to the outwardly dowdy neighborhood committees that oversee sanitation. Efforts began just days after Xi Jinping, the newly appointed Communist Party chief and China’s incoming president, warned that failing to curb corruption could put the party’s grip on power at risk.


“Something has shifted,” said Zhu Ruifeng, a Beijing journalist who has exposed more than a hundred cases of alleged corruption on his Web site, including the lurid exertions of Mr. Lei. “In the past, it might take 10 days for an official involved in a sex scandal to lose his job. This time he was gone in 66 hours.”


The licentiousness of Qi Fang, the public security chief of a small city in the far west, probably deserves a prize for originality. This month, an Internet sleuth revealed that Mr. Qi was maintaining two young sisters as mistresses. The sisters, as luck would have it, had also landed police department jobs and shared an apartment bankrolled by the city.


Mr. Qi lost his post, but not before denying any mischief and correcting one detail of the story: the sisters, contrary to earlier reports, are not twins.


Still, for all the salaciousness associated with the latest scandals, analysts say it is too soon to know whether Mr. Xi and other senior leaders have the stomach to wage a no-holds-barred war on the party’s pervasive corruption.


They point out that most of the recent scandals were uncovered by journalists, anonymous citizens or disgruntled colleagues who posted photographs and other damning allegations on the Internet, forcing the authorities to respond. Also significant is that most of those ousted were relatively minor officials.


The manager of a major Chinese Internet company said the party was effectively abetting the anticorruption free-for-all by declining to pull the plug on the online denunciations. But he said there was an implicit understanding that high-ranking officials were off limits.


“For now it’s spontaneous,” said the manager, who asked that the name of his company be withheld because of the political sensitivities involved. “But we also understand the parameters.”


This month, Luo Changping, deputy managing editor at the enterprising newsmagazine Caijing, published accusations on his microblog about improper business dealings by Liu Tienan, the director of China’s National Energy Administration. The postings, which also included charges that Mr. Liu had fabricated his academic qualifications and had threatened to kill his mistress, have caused something of an earthquake, given that they targeted such a high-level official. Just as astonishing, many say, is that Mr. Luo’s claims remain undeleted by censors despite Mr. Liu’s denials of wrongdoing.


Patrick Zuo contributed research.



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8 Festive Christmas Tumblrs, Presented by Santa Dogs






365 Days of Christmas


Image courtesy of Flickr, nicktakespics


Click here to view this gallery.






[More from Mashable: 10 Holiday Stock Photos That Make Your Christmas Look Normal]


If the endless loop of Wham and Mariah Carey Christmas tunes still hasn’t put you in the holiday mood, let the Internet help.


SEE ALSO: 20 Amazing Christmas Surprises

[More from Mashable: Now and Then: 10 Awesome Past and Present Pics]


We ho, ho, ho‘ed around Tumblr in our digital sleigh to track down eight Christmas-themed Tumblr pages. As if the jolly Tumblrs weren’t enough, we also paired each of our favorites with a dog dressed like Santa Claus — or Santa Paws.


Merry Christmas, Internet!


Image courtesy of Flickr, H.L.I.T.


Click here to view this gallery.


Image courtesy of Flickr, jacilluch


This story originally published on Mashable here.


Tech News Headlines – Yahoo! News





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Giada De Laurentiis: My Daughter Still Believes in Santa

Giada De Laurentiis Jade Still Believes in Santa
Courtesy Giada De Laurentiis


The tree’s done. The stockings are hung. Giada De Laurentiis and her family — husband Todd Thompson and their daughter Jade Marie — are officially ready to host the holidays.


“Christmas Eve is the big tradition in an Italian family. It’s when my entire family gets together,” the newest face of Clairol tells PEOPLE exclusively.


“This year, for the first time, it will be held at my house … so Jade and I and my husband are very excited.”


On the menu for the family festivities is “a big fish dinner,” one that no doubt Jade will help her mother to prepare. After all, adds the celebrity chef, she is the unofficial taste tester.


“My daughter loves to cook. We have a lot of laughs together. I spend a lot of time in the kitchen and she loves hanging out with me,” De Laurentiis, 42, shares. “The reason she loves it so much is because she can stick her finger in everything and taste it as she goes along.”

Once the big dinner is done with, and the evening starts to wind down, De Laurentiis and Jade will start to prepare for the night’s biggest guest to arrive: Santa Claus. At 4½-years-old, her little girl is still a strong believer in the magic of it all, notes her proud mama.


“She leaves him little treats — for the reindeer and for him too — and she’s very much a believer in Santa,” De Laurentiis says. “I hope she’ll be a believer for a long time, I think it’s really fun for kids to be able to do that.”


Recently, the pair sat down to write out Jade’s wish list, but after much pleading on Jade’s part over the past few weeks, it’s no surprise as to what she hopes to find under the tree this year.


“The one thing she keeps asking me for over and over again is clip-on earrings. She must have seen them on somebody else, but she has asked me for clip-on earrings for the past month,” De Laurentiis notes. “I am on a mission to find clip-on earrings for her because I don’t think she’ll ever forgive me if I don’t.”


But based on her newly transformed play space, the “girly girl’s” specific accessory request should come as no surprise.


“She’s opened up her own little salon in her playroom. She gives free makeovers, she curls people’s hair and gives them little manicures as well,” De Laurentiis says. “I’ve always been a girly girl my whole life — maybe she will, maybe she won’t — but it’s a lot of fun to play with her right now.”


– Anya Leon with reporting by Kate Hogan


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Predicting who's at risk for violence isn't easy


CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.


Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.


But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.


"They're yellow flags. They only become red flags once the blood is spilled," he said.


Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.


Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)


Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.


Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.


"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."


The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."


In a guidelines for families, the academy lists several risk factors for violence, including:


—Previous violent or aggressive behavior


—Being a victim of physical or sexual abuse


—Guns in the home


—Use of drugs or alcohol


—Brain damage from a head injury


Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.


Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.


Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.


According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.


Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.


Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.


And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.


All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.


Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.


Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.


Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.


___


Online:


American Academy of Child & Adolescent Psychiatry: http://www.aacap.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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China consumers driving economic rebound: survey


BEIJING (Reuters) - China's consumers are leading an uneven recovery in the world's second biggest economy that has retailers expecting stronger sales in six months, early results of a national survey showed on Wednesday.


The China Beige Book survey of more than 2,000 executives revealed that the retail sector had the strongest revenue growth and business expectations in the fourth quarter of 2012.


The survey broadly detected a mild economic recovery with the hard-hit sectors of real estate, mining and manufacturing - to a lesser extent - joining retail at the head of the upswing.


"The revenue growth pickup was notable in luxuries and durable goods - furniture, appliances, and autos," said the survey, conducted between October 26 and December 2 by New York-based CBB International and based on the U.S. Federal Reserve's economic report of the same name.


"Retailers' mood remains quite hopeful, with 72 percent forecasting higher sales in six months, up 4 points on last quarter. A remarkably low 6 percent foresee declines," it said, adding that 61 percent of retailers reported higher sales in the Q4 survey than in Q3.


The biggest bounces were seen in coastal Guangdong province, Beijing, the northeast and central regions of China - locations which Q3's survey found had the biggest spending falls.


The retail rebound was not evenly distributed, however, with Shanghai and the southwest region recording falls in spending.


The survey's findings are reflected in the most recent raft of economic indicators from China, revealing a mild rebound taking hold in Q4, and in policymaker comments.


China's retail sales grew 14.9 percent year-on-year in November, ahead of the 14.6 percent forecast in a Reuters poll.


China is on course to end 2012 with the slowest full year of growth since 1999 and while the 7.7 percent rate forecast in a benchmark Reuters poll is way above the world's other major economies, it is far below the roughly 10 percent annual growth seen for most of the last 30 years.


Weakness in the external environment remains a key drag on an economy in which exports generated 31 percent of gross domestic product in 2011, according to World Bank data, and where an estimated 200 million jobs are supported by foreign investment, or in factories producing for overseas markets.


RECOVERING, REBALANCING


The upside to the patchiness of the recovery is that it is being driven by services, which are calibrated more towards domestic demand. Geographic rebalancing away from prosperous coastal areas was also evident in the survey, with firms in the western region recording the highest revenue growth in Q4.


The survey had mixed findings for labor markets, with a 3 point rise to 34 percent in the proportion of firms citing an increased availability of unskilled labor, while 20 percent said shortages had increased.


Some 34 percent of firms increased their workforces in Q4 from Q3. Wage rises were reported by 52 percent of respondents.


Bankers questioned in the survey said credit conditions eased in Q4, but fewer firms borrowed. Meanwhile, banks and firms said loan rejections rose slightly, to 16 percent, and exposure to companies with excess production capacity was cut.


"Few corporate loans went to new customers: three-fifths of bankers say under 20 percent did — an astonishingly small number," the survey said.


"Most were debt rollovers or loan increases for existing clients. This is not yet a period of strong expansion."


The China Beige Book survey of face-to-face and telephone interviews compares conditions with the previous quarter and asks respondents to anticipate conditions three and six months ahead.


The survey sample includes executives from manufacturing, retail, service, transport, real estate and construction, farming, and mining. Respondents ran businesses of every size from the micro-level - employing up to 19 staff - to large firms with more than 500 employees. It also canvassed opinions from 160 bank loan officers and branch managers.


A detailed report of the survey's full findings will be published in early January.


(Reporting by Nick Edwards; Editing by Robert Birsel)



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Pope Prays for Freedom in China and Peace in Syria


Alessandro Bianchi/Reuters


Pope Benedict XVI blessed the crowd during his "Urbi et Orbi" address fin St. Peter's Square in Vatican.







ROME — Speaking from the balcony of Saint Peter’s Basilica, Pope Benedict XVI called Tuesday for religious freedom in China and peace for the “defenseless” in Syria in his annual Christmas Day message.




“May peace spring up for the people of Syria, deeply wounded and divided by a conflict which does not spare even the defenseless and reaps innocent victims,” Benedict said. “I appeal for an end to the bloodshed, easier access for the relief of refugees and the displaced, and dialogue in the pursuit of a political solution to the conflict.”


Wearing a short red cape lined with snow-white ermine and trimmed with gold embroidery, Benedict smiled as he offered Christmas greetings in 65 languages to thousands of faithful in Saint Peter’s Square. Marching bands from from the Italian armed forces and the Carabinieri police played festive anthems. During Christmas Eve Mass on Monday evening, the 85-year-old pontiff had appeared tired and his voice hoarse, but on Tuesday he appeared more vivacious as he delivered the traditional message, “Urbi et orbi” — to the city and the world.


He also addressed China, where in recent weeks the Vatican has been increasingly at odds with the government over the ordination of bishops, who cannot hold office without approval from the authorities, to the dismay of the Vatican.


“May the King of Peace turn his gaze to the new leaders of the People’s Republic of China for the high task which awaits them,” Benedict said. “I express my hope that, in fulfilling this task, they will esteem the contribution of the religions, in respect for each, in such a way that they can help to build a fraternal society for the benefit of that noble people and of the whole world.”


Aggravating tensions, the Chinese Bishops’ Council, a government entity, stripped Thaddeus Ma Daqin, 45, the auxiliary bishop of Shanghai, of his title this month, according to Catholic Web sites that cited sources in the Chinese church.


The bishop had been under house arrest since he shocked Communist Party officials and his faithful by renouncing his government position during his consecration in July. In recent years, China’s Patriotic Catholic Association, which does not recognize the authority of the pope, has consecrated a number of bishops over the Vatican’s objections, resulting in their excommunication.


On Tuesday, Benedict asked God to give Israelis and Palestinians the “courage to end to long years of conflict and division, and to embark resolutely on the path of negotiation” and called for peace in Egypt, “land where the Redeemer was born.”


The pope also urged “the return of peace in Mali and that of concord in Nigeria, where savage acts of terrorism continue to reap victims, particularly among Christians.” He prayed for “the refugees from the east of the Democratic Republic of Congo,” and for peace to Kenya, “where brutal attacks have struck the civilian population and places of worship.”


On Monday evening, communicating through his new Twitter handle, @Pontifex, Benedict recalled that as a boy he loved his family’s Christmas crèche, and asked his followers what their favorite Christmas traditions were. “The cribs that we built in our home gave me much pleasure,” his message read. “We added figures each year and used moss for decoration.”


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First photos of BlackBerry 10 ‘N-Series’ QWERTY smartphone leak









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Charles Durning Dies















12/25/2012 at 07:30 AM EST



Charles Durning, the versatile character actor whose friendly face and full form was recognizable to movie audiences since the mid-'70s, died of natural causes at his Manhattan home Dec. 24, his agent confirmed. He was 89.

Among his roles: The corrupt cop in The Sting, the show-stopping Governor in Best Little Whorehouse in Texas (for which he was nominated for a Best Supporting Actor Oscar), Jessica Lange's father and Dustin Hoffman's love-smitten suitor in Tootsie, a buffoon of a German officer in To Be Or Not to Be (another Oscar nod) and Warren Beatty's law-enforcement boss in Dick Tracy.

His range of real-life roles was even broader. Durning, a genuine World War II hero with the Purple Hearts to prove it, worked in a button factory, taught ballroom dancing, sung on radio, trained as a stockbroker and painted bridges.

According to a 1990 PEOPLE profile, at the time he played Big Daddy to Kathleen Turner's Maggie the Cat in a Broadway revival of Tennessee Williams's Cat on a Hot Tin Roof, During had been on his own since age 16, when he left home because his widowed mother, Louise, was having trouble supporting five kids on the money she earned laundering cadets' uniforms at West Point. (His father, an Army sergeant, died when Durning was 12.)

His first job in showbiz was in Buffalo, N.Y., where he landed a job as an usher in a burlesque house and became fascinated by the comics. Filling in for a comedian who was often too drunk to go on and winning the laughs himself convinced Durning he wanted to perform.

In 1944 Durning enlisted in the Army, landing in Normandy on D-Day. He was the only member of his patrol to come back alive from the Battle of the Bulge, and the war's end found him in the hospital recovering from his wounds and a mental breakdown.

"There's only so much you can witness," said Durning, who received three Purple Hearts. "Before the war I was very quiet and happy-go-lucky. I still hold a lot of resentment."

All-Star Classmates

Healthy again and living in Manhattan. Durning enrolled at the American Academy of Dramatic Arts, though paled in comparison to his classmates, who included Jason Robards. Colleen Dewhurst and Grace Kelly. Deciding to forge ahead with a career, he joined a modern dance troupe, sang in nightclubs, fronted a dance band.

Off Broadway roles followed, as did marriage to Carol, a fellow dance instructor at Fred Astaire Dance Studios. They had three children, but Durning began traveling with road companies of plays – which all but destroyed his family life. The couple divorced in 1972.

By then, Durning's stage career was taking off, thanks to the New York Shakespeare Company production of Jason Miller's That Championship Season. This led to his role in The Sting, and from then on his movie career was off and running.

In 1974, he married his high school sweetheart, Mary Ann Amelio, who survives him, as do his children, Michele, Douglas and Jeannine. The family planned to have a private family service and burial at Arlington National Cemetery, reports the Associated Press.

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Predicting who's at risk for violence isn't easy


CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.


Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.


But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.


"They're yellow flags. They only become red flags once the blood is spilled," he said.


Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.


Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)


Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.


Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.


"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."


The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."


In a guidelines for families, the academy lists several risk factors for violence, including:


—Previous violent or aggressive behavior


—Being a victim of physical or sexual abuse


—Guns in the home


—Use of drugs or alcohol


—Brain damage from a head injury


Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.


Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.


Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.


According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.


Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.


Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.


And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.


All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.


Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.


Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.


Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.


___


Online:


American Academy of Child & Adolescent Psychiatry: http://www.aacap.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Yen on defensive on U.S. fiscal worry, helps Nikkei

TOKYO (Reuters) - Uncertainty over whether U.S. lawmakers will strike a deal by an end-of-year deadline to avert a severe fiscal retrenchment undermined the yen and bolstered Japanese shares on Tuesday in low volume, with many participants away on Christmas holiday.


The dollar rose to a 20-month high of 84.965 yen early on Tuesday in Asia, as Japanese markets caught up with global investors who had reacted overnight to incoming Japanese Prime Minister Shinzo Abe's weekend comments that raised the pressure on the Bank of Japan.


During a meeting on Tuesday with officials from Japan's major business lobby, Keidanren, Abe reiterated calls on the BOJ to conduct bold monetary easing to beat deflation by setting an inflation target of 2 percent.


The head of Abe's coalition partner said on Tuesday the coalition party and Abe had agreed to set a 2 percent inflation target and compile a large stimulus budget to help the economy return to growth and overcome deflation.


The yen has come under pressure as a result of expectations that the BOJ will be compelled to adopt more drastic monetary stimulus measures next year.


The dollar was expected to stay firm this week as investors repatriate dollars, and as the U.S. fiscal impasse is likely to continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.


"The dollar is seen relatively well bid, with all focus on the fiscal cliff," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.


"Negotiations may be carried over the weekend, but markets still expect a deal to be struck by December 31. It is unthinkable that the U.S. will risk driving its economic growth sharply lower by not agreeing to avoid it."


U.S. lawmakers and President Barack Obama were on Christmas holiday and talks were unlikely to resume until later in the week.


House of Representatives Speaker John Boehner failed to gain support for a tax plan at the end of last week, raising fears that the United States may face the "fiscal cliff" of some $600 billion in automatic spending cuts and tax increases set to start on January 1.


Japan's Nikkei stock average <.n225> resumed trading after a three-day weekend with a 1.1 percent gain, recapturing the key 10,000 mark it ceded on Friday after Boehner's failure sparked a broad market sell-off and the Tokyo benchmark closed down 1 percent. The Nikkei was likely to be supported as long as the yen stayed weak. <.t/>


"Ongoing optimism about the weak yen is lifting hopes that exporters' earnings will be better than expected," said Hiroichi Nishi, general manager at SMBC Nikko Securities.


Analysts say a near-term correction may be possible as the index is now in "overbought" territory after gaining 16.2 percent over the last six weeks, hitting a nine-month high last Friday. Its 14-day relative strength index was at 72.34, above the 70 level that signals an overbought condition.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> nudged up 0.1 percent, driven higher by surging Shanghai shares, as most Asian bourses were shut for Christmas.


The Shanghai Composite Index <.ssec> soared over 2 percent to five-month highs as investors bought property stocks on mounting optimism about the sector. Taiwan shares <.twii> jumped 1.3 percent on gains in technology and financial shares.



Asset performance in 2012: http://link.reuters.com/muc46s


2012 commodities returns: http://link.reuters.com/faz36s


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


U.S. HOLDS 2013 KEY


Goro Ohwada, president and CEO at Japan-based fund of hedge funds Aino Investment Corp, said investors were likely to focus on economic fundamentals and the United States for cues on investment direction in 2013.


"There is a feeling that an investment strategy based on economic fundamentals may finally work next year, with asset prices more closely reflecting fair value. The problem is, we don't know yet which asset is a better bet than others," Ohwada said, adding that oil and gold appeared to be near their highs.


Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory, said commodities and energy prices will likely move in tight ranges in 2013, with investors eyeing political events, including the U.S. fiscal cliff outlook, Italian parliamentary election set for February 24-25, and Germany's elections in September.


"The macroeconomic policies taken this year around the world to support growth are expected to result in a moderate recovery in 2013 to reduce an excessive downside risk to prices. This will likely keep commodities, gold and energy prices near their highs," Niimura said.


(Additional reporting by Ayai Tomisawa in Tokyo; Editing by Edmund Klamann and Daniel Magnowski)



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