VENTURE CAPITAL POST

The yen is fairly valued around current levels, a key economic adviser to Prime Minister Shinzo Abe said on Tuesday, a day after comments he made were taken to mean the yen was too weak.

The yen rose across the board on Tuesday, hitting a two-year high against the euro, after an economic adviser to Japan's Prime Minister Shinzo Abe indicated that the currency might have fallen too far and needed to retrace some of its losses.

The Australian dollar gained more than 1 percent against the U.S. dollar, on track for its biggest daily rise in more than two weeks, after the Reserve Bank of Australia surprised many investors by refraining from cutting interest rates.

Asian stocks were mixed on Friday and the dollar rebounded as rising tensions in the Middle East clouded the investment outlook.

The Bank of Japan is set to maintain its massive stimulus program on Tuesday and signal its conviction that a steady economic recovery will help achieve its ambitious price target without immediate, additional monetary easing.

The euro held steady on Wednesday, finding some support as investors held on to hopes that Greece will find enough common ground with its euro zone partners and avoid a chaotic exit from the currency union.

Global shares hit their highest since September on Monday and the euro firmed, with investors cautiously optimistic euro zone finance ministers would reach a deal to shore up Greece's dwindling finances.

Japan's Sony Corp (6758.T) said its net annual loss will likely be smaller than previously forecast after cost cuts and strong sales of its image sensors and PlayStation video game consoles helped its third-quarter profit beat estimates.

The Bank of Japan has put monetary policy on hold and found backing for its wait-and-see stance from advisors to Prime Minister Shinzo Abe, who worry more easing could send the yen to damagingly low levels, according to officials in the administration and central bank.

The dollar was on track to end 2014 with a gain of 12 percent against a basket of major currencies, and anticipated U.S. interest rake hikes may strengthen its appeal in the new year.

An uneasy calm settled on Asian markets on Wednesday as a brewing financial crisis in Russia and the rout in oil prices sent investors scurrying for the cover of top-rated bonds.

The yen edged higher on Tuesday as a fall in oil prices dented risk appetite and prompted investors to trim short positions in the Japanese currency.

The dollar marked a fresh seven-year high against the yen on Wednesday, which helped lift the Nikkei to a similar record, while oil prices recovered after data showed a drop in U.S. supply.

Japan's top government spokesman said on Monday the nation's capital spending is on a rising trend on the back of improving corporate earnings, and it will likely continue to increase.

Japanese Prime Minister Shinzo Abe said on Friday if the country returns to a period of excessive yen strength it would lead to a further hollowing out of manufacturing and job losses.