Asian stocks have made hefty gains this year despite global economic uncertainty, but in the weeks ahead, analysts warn against a possible pull-back in equities if the U.S. is unable to avert the "fiscal cliff" – a series of tax hikes and spending cuts that could tip the world's largest economy into recession.
The yen fell to a two-year low on Thursday, continuing its rapid downtrend that started in the middle of last month. But analysts warn that the yen could end up firmer by the end of 2013 as the Federal Reserve will stay ahead of the Bank of Japan (BOJ) in monetary easing, which means the dollar will fall at a more rapid pace.