By Shinichi Saoshiro
TOKYO (Reuters) - Asian stocks dipped in early trade on Monday after disappointing earnings hit Wall Street, while the dollar hovered near six-months peaks against a basket of major currencies.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was down 0.1 percent, taking cues from Wall Street where lackluster results from bellwether names Visa
Tokyo's Nikkei <.N225> shed 0.2 percent after hitting a six-month closing low on Friday.
The euro traded little changed at $1.3434
The euro, already under pressure from a range of factors including expectations of further easing by the European Central Bank and diverging interest rates seen favoring the U.S. over Europe, took another hit on Friday when Germany's Ifo business climate index painted a gloomy picture of the economy.
Focus turned to this week's run of U.S. data for directional cues on the euro and dollar, including the Case-Shiller price index on Tuesday, second quarter GDP due on Wednesday and non-farm payrolls on Friday.
"We should brace for the euro breaking below key support at 1.34 given diverging U.S. and European monetary policies. Dollar buying pressure is building as shown by the strength of the dollar index, which this week's data, if upbeat, could enhance further," said Junichi Ishikawa, market strategist at IG Securities in Tokyo.
The two-day Federal Reserve policy review ending on Wednesday was also in focus but expectations were for Chair Janet Yellen to deliver the usual dovish message.
The dollar index <.DXY>, a gauge of its strength against a basket of key currencies, stood little changed at 81.305 after striking a near six-month high of 81.804 on Friday.
The dollar fetched 101.77 yen
While the attention of equity and currency markets has shifted towards major corporate earnings and macroeconomics, geopolitical issues remained a key factors in commodities such as oil.
Brent crude
(Editing by Eric Meijer)
