Market Report - Fed Chills Dollar

In todays market report Asian stocks gave up early gains, while the dollar was pinned near 15-month lows. The US Federal Reserve says interest rates are likely to be kept low for some time yet.

The yen's strength against the ailing greenback weighed on Japanese exporters. It offset gains in commodities-linked shares after a surge in oil and gold prices overnight.

Markets reacted little to talks between U.S. President Barack Obama and Chinese leader Hu Jintao in Beijing. Both agreed to work to ease trade friction but appeared to break no new ground on the contentious issue of the yuan's value.

Obama said he supported further development of China-Taiwan ties a day after the two signed a financial services pact, paving the way for banks on both sides to invest in each other.

Bank of China, the country's biggest foreign exchange lender, said it is ready to open a branch in Taiwan and will apply for regulatory approval as soon as possible.

Meanwhile, Geely Automobile, China's 11th largest automaker, said Ford would retain the rights to Volvo technologies if Geely's bid is successful.

Ford named Geely the preferred bidder for its loss-making car unit last month.

No price for Volvo has been disclosed, but media reports suggest it could be closer to $2 billion than the $6.45 billion Ford paid for the Swedish carmaker in 1999.

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