Asian shares fall over fiscal cliff fears Friday 03.15 GMT Asian stocks pared early gains as concerns over the looming fiscal cliff overshadowed positive US economic data. There was growing uncertainty over negotiations to avoid the fiscal cliff after US House Republican leaders cancelled a planned vote on a budget proposal. Worries about the budget talks weighed on the market although confidence in the US economy increased after a raft of recent data. The US economy grew at a faster-than-expected 3.1 per cent annual rate in the third quarter while home resales in November were the best in three years. Looking at the broader picture, we still have no deal on the fiscal cliff in the US. Will it turn out to be a "buy the rumour sell the fact" event if we do get a resolution?" Ben Le Brun, market analyst at optionsXpress said in a note. Recent share market performance suggests yes. Japan's Nikkei Stock Average fell 0.25 per cent after rising 1.3 per cent earlier in the day, while South Korea's Kospi Composite index and Hong Kong's Hang Seng index both fell 0.9 per cent. Australia's S&P/ASX 200 index was flat while Taiwan's Taiex index dipped 1.1 per cent. China's Shanghai Composite index added 0.1 per cent. Mitsubishi UFJ Financial Group rose 1.4 per cent and Nomura Holdings shot up by 3.3 per cent. Real estate groups also gained ground on a report that the BoJ is likely to adopt an inflation target in January. The Bank of Japan stepped up its monetary easing with a Y10tn ($118bn) increase in the size of its asset-purchasing programme on Thursday and was expected to pursue more aggressive measures next year. Mitsui Fudosan surged 3.4 per cent while Nissan Motor lost 0.8 per cent after rising as much as 1 per cent. In Hong Kong, energy shares lost ground as benchmark US oil futures dropped below $89.50 a barrel on the negative news from Washington. China Petroleum & Chemical dropped 1.8 per cent and Cnooc dipped 1.5 per cent. In Seoul, Samsung Electronics dropped 2.4 per cent, weighing on the Kospi, after EU regulators said late on Thursday that they plan to file a complaint against the company as part of a probe over patents. In Australia, Qantas Airways gained 1.5 per cent after reporting a 6.4 per cent rise in November passenger numbers from a year earlier. In currency markets, the yen moved higher to Y84.22 after the US fiscal-cliff vote cancellation, from Y84.43 in New York on Thursday. So far this year, the yen has fallen about 9 per cent against the dollar. In commodities markets, spot gold was steady at $1,647.11 an ounce after falling more than 1 per cent as its appeal was eroded by the improving US economy. US crude inched down 0.1 per cent to $90 a barrel. Earlier, Wall Street's S&P 500 closed 8 points higher at 1,444, kept aloft by a rebounding Philly Fed factory activity survey and stronger-than-expected US home sales data. The FTSE Eurofirst 300 closed fractionally firmer.