In Russia, a Trendy Activism Against Putin Loses Its Moment





MOSCOW — As the final days of 2012 slipped away, no one at Denis Terekhov’s company was talking about the next antigovernment protest.




Compared with the same time last year — when Mr. Terekhov delivered an impromptu lecture on avoiding police detention — Moscow feels like Moscow again. Profits at this marketing firm have tripled, the corporate holiday party featured cocktails in an unnatural shade of blue, and his “office plankton,” as the city’s legion of desk workers are sometimes known, scattered to vacations as far as Bali and Paris.


Mr. Terekhov, who watched his employees as last year’s protests surged and ebbed, says it is now clear that they took part because it was fashionable, nothing more. They felt strongly about the anti-Putin rallies, he said, but “they also feel strong emotions about their iPhones.”


Still, judging from this group, it would be wrong to say nothing changed in the year that Vladimir V. Putin returned to the presidency. The fizzy excitement around last year’s street activism is entirely gone. But in its place is a deepening sense of alienation that poses its own long-term risk to the system.


Discussion of political activism in this office, an Internet marketing and communications firm called Social Networks Agency, is now coated with a rime of disappointment, as if a rare opportunity had been allowed to slip away. During the trial of the punk rock band Pussy Riot this past summer, Mr. Terekhov set aside one office as a screening room, where employees could watch a live stream of testimony with, as he put it, “laughter through tears.”


A space has been left by Pasha Elizarov, a project manager and opposition activist, who resigned and left Russia after investigators summoned him in connection with an inquiry into inciting a riot. He sent in his holiday greetings from Tanzania.


Their story is the story of a political season. Mr. Putin reclaimed the presidency last year in the face of unprecedented public opposition from people like these, young urban trendsetters who stepped in from the sidelines of politics to tell him his return was not welcome. The Kremlin acted to stop the protests; new laws prescribe draconian punishments for acts of dissent, and the courts have imprisoned a small number of activists. Mr. Putin and those around him have embraced a new, sharply conservative rhetoric, dismissing the urban protesters as traitors and blasphemers, enemies of Russia.


Last year’s protesters, who held out hope that Dmitri A. Medvedev would advance their agenda, are acutely aware that they are seen as outsiders. Irina Lukyanovich, 24, a copy editor who recently left the firm, said her peers were watching Russia’s leaders more closely now, and judging them more severely.


“It’s as if they are people from another planet,” Ms. Lukyanovich said. “It seems to me that in a year, the distance between them and us has gotten much greater.”


Yulia Fotchenko, an account director, sighed heavily when reminded of the elation she felt a year ago, when she stepped into the first large rally and her “consciousness was turned upside down.”


How does she feel now? Insulted, disappointed. As if nothing in Russia will change. She blames the protest leaders, who she said proved so unable to capitalize on the moment that the crowds will never trust them again. As for the sudden sense of community she felt, it proved fleeting.


“Suddenly we — a huge number of Internet hamsters — we decided that we had had enough, we got together and we went out,” Ms. Fotchenko said, using a slang term for Moscow’s digitally connected youth. “And then, whoops! We turned back into Internet hamsters, the leaders and all the rest of us. Because nothing happened.


“And now I feel despair which is even stronger, deeper, worse than it was before we began these actions,” she said.


Mr. Terekhov, 33, had been skeptical of the protests from the beginning, in part because he was left discouraged by his own brief career in opposition politics. A year ago, he made a point of warning his employees that by protesting they were facing serious risks, like riot police officers with truncheons. They needed to realize, he said, that “revolution is not a game.”


The risks went beyond truncheons, it turned out. On a Sunday evening in September, Mr. Terekhov received an e-mail from Mr. Elizarov, 27, the single high-profile political activist among his employees. Mr. Elizarov said he was resigning from his position as a project manager and was leaving Russia.


He had been summoned in a political prosecution, one that has been used to cast the protesters as dangerous radicals. So far, 19 people have been charged in the case dating to May 6, when a large anti-Putin march ended in a melee between the police and protesters. The only one to be sentenced, a man who inflicted no serious injury and cooperated with prosecutors, received four and a half years.


Investigators looked for Mr. Elizarov at home, and they then began to visit his relatives, one by one.


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How BuzzFeed Is Betting on Hollywood, Long-Form Writing to Grow






LOS ANGELES (TheWrap.com) – Last January, BuzzFeed, then an aggregator of memes and cat videos, secured a $ 15.5 million round of venture capital to beef up a craft that most traditional media was downsizing: journalism.


It hired dozens of reporters and editors, opened bureaus in Washington, D.C., and Los Angeles and became a must-read for political junkies during the 2012 presidential election.






On Thursday, the company took another step.


It added adding a fourth round of capital investment – this time worth $ 19.3 million. And it plans to expand in two major ways: literary, long-form journalism like the kind practiced by New York magazine and the New Yorker, and – with two former Los Angeles Times staffers newly on board – its Hollywood coverage.


BuzzFeed’s been on a roll. According to the privately held company‘s internal traffic numbers, the 8 million unique monthly visitors it drew in 2008 has swelled to 40 million, and revenue for 2012 may triple that of 2011, a spokeswoman for BuzzFeed told TheWrap.


Writing in the Wall Street Journal on Friday, Tom Gara reported that some analysts place the company’s valuation at $ 200 million and say that revenues may reach $ 40 million this year.


Most of BuzzFeed’s traffic currently comes from its odd mix of news and eccentricity on the homepage. Friday morning, spotlighted stories ranged from J.J. Abrams screening his new “Star Trek” for a dying fan and Sen. Tammy Baldwin talking about breaking the glass ceiling to: “How to Murder Your Friend’s Facebook Page” and “Here Are Some Elephants Eating Christmas Trees.”


But there’s no question things are changing.


The first thing CEO Jonah Peretti did with his 2012 investment cash was hire Ben Smith, a Politico veteran, as the site’s first editor-in-chief. Smith then kicked off a hiring spree of reporters and got to work. Already BuzzFeed is beginning to break stories and get quoted by aggregators.


McKay Coppins, the site’s political editor, embedded with Republican presidential nominee Mitt Romney’s campaign. John Stanton, a veteran reporter in Washington, was named BuzzFeed’s first D.C. bureau chief. Michael Hastings, the dogged journalist whose Rolling Stone exposé of Gen. Stanley McChrystal’s private disagreements with President Obama over Afghanistan led to his resignation, joined the team.


Then, less than a year into its political foray, the site hired former Spin magazine chief Steve Kandell to make the push for longform journalism.


It began with an experiment – a 7,118-word post from last October titled “Can You Die From a Nightmare?” that garnered more than 115,000 hits. Another in October titled “Making Mitt: The Myth of George Romney” drew nearly 130,000 views. This convinced Smith and his team that literary journalism had a niche in the viral news market.


Despite the internet school of thought that briefer is better, Kandell said he has no plans to restrict stories’ word counts.


“If someone has a story that has to be 10,000 words, I don’t know why that couldn’t be,” Kandell said.


“I don’t think people necessarily have a certain fatigue level when it gets to a certain length and people start trailing out.”


Kandell says he plans in the coming months to start publishing at least one long-form story a week and may even start packaging and selling the stories as Amazon Kindle singles or as audiobooks.


Kandell assembled a “Best of 2012″ post for his nascent section of the site. The stories ranged from the tale of BuzzFeed’s own political editor Coppins, a Mormon, watching attitudes toward his and Romney’s religion change throughout the campaign to an inside look at the “Dark World of Online Sugar Daddies.”


Plans are to cover more foreign policy and national security issues from a Washington-centered perspective – and to add Hollywood into the mix. The only hands-off topic, apparently, will be international news.


“We’ve played around with ways to make world news more sharable, just like every editor at every publication,” he said, noting that readers liked a roundup of Instagram photos of the civil war in Syria. “It’s really hard, it’s not something we want to jump into without really knowing what we’re doing.”


As for Hollywood, BuzzFeed hired Richard Rushfield, former entertainment editor of LATimes.com, and ex-Times television editor Kate Aurthur, also a former Daily Beast staffer, to jump-start its bureau.


Smith said he plans to forge a presence in Los Angeles second only to its flagship New York bureau. A Hollywood vertical is expected to launch on January 7.


To that end, the site is entering a crowded space – one dominated by publications like Variety, the Hollywood Reporter, TheWrap, Vulture and the Times – but Rushfield said he plans to cover entertainment through BuzzFeed’s social-web lens: If it’s irresistibly share-worthy, it’s publishable.


“We have a unique position, despite how crowded the beat is,” Rushfield told TheWrap, adding that they won’t be competing with trades over stories concerning studio executives and casting deals. “One of our advantages is that we are not going to be going after every single story that the trades are – we have more room to take the things that we think can be interesting. What BuzzFeed is about is writing news that will be of interest to the social web.”


Now the trick is to make all these editorial investments worthwhile financially.


Revenue growth from its advertising model has been climbing, chief operating officer Jon Steinberg told TheWrap.


Forgoing the usual banners and display ads, BuzzFeed offers its clients “branded content.” For example, Scope mouthwash sponsored a “listicle” on the most “courageous” mustaches.


To that end, the advertising team, which is made up of 20 people that report to Steinberg, works with brands from General Electric to Virgin Mobile to devise sharable pieces of content.


The ratio of advertorial to editorial content on the homepage is usually about one to every six or so stories,” he said.


Those branded-content headlines garner 10-20 times the click-through rates of blinking banner and display ads, Steinberg told TheWrap.


“You compare those ads in the 1950s to modern advertising, you realize how broken modern advertising is,” Steinberg said. “Most publishers and media companies say you can’t make money on modern advertising.”


But – though he declined to reveal exact numbers, as BuzzFeed is a private company – the model helped to increase revenue last year and has allowed the publication to focus solely on its advertising stream.


He said the company has no immediate plans to enter the conference business popular with online publications including the Business Insider, AllThingsD and TheWrap.


“This is our Google ad words,” Steinberg said of the innovative advertising tool that Google pioneered in the mid-2000s. “If we were Apple, this would be our manufacturing of great hardware products.”


Internet News Headlines – Yahoo! News





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Courteney Cox: I'll 'Show My Boobs' on the New Season of Cougar Town















01/04/2013 at 08:00 PM EST



Courteney Cox is taking the term "boob tube" literally.

The Cougar Town star, 48, whose show moves from ABC to TBS on Jan. 8, eagerly anticipates more um, revealing scenes once the program makes its way to the cable network.

"You will not see one scene that I don't show my boobs," Cox joked to reporters Friday at the Television Critics Association winter tour, according to Access Hollywood.

"You know what? I'm getting older, so I've decided at this point I'm taking less focus [on] the face, and focusing here," she added, pointing to her chest. "By the time I'm much older, I will just be absolutely nude. I think it's [going to] work for me, I hope."

The show's executive producer, Bill Lawrence, backed up Cox's comments. "There is one difference [with the show going to cable]," he said Friday. "I think I'm allowed to say … Courteney did declare this the year of her cleavage."

Still, the star isn't exactly baring it all. Although there is an episode themed "naked day" for Cox's character Jules and her on-camera hubby Grayson (Josh Hopkins), there will be no actual nudity on the show.

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FDA proposes sweeping new food safety rules


WASHINGTON (AP) — The Food and Drug Administration on Friday proposed the most sweeping food safety rules in decades, requiring farmers and food companies to be more vigilant in the wake of deadly outbreaks in peanuts, cantaloupe and leafy greens.


The long-overdue regulations could cost businesses close to half a billion dollars a year to implement, but are expected to reduce the estimated 3,000 deaths a year from foodborne illness. Just since last summer, outbreaks of listeria in cheese and salmonella in peanut butter, mangoes and cantaloupe have been linked to more than 400 illnesses and as many as seven deaths, according to the federal Centers for Disease Control and Prevention. The actual number of those sickened is likely much higher.


The FDA's proposed rules would require farmers to take new precautions against contamination, to include making sure workers' hands are washed, irrigation water is clean, and that animals stay out of fields. Food manufacturers will have to submit food safety plans to the government to show they are keeping their operations clean.


Many responsible food companies and farmers are already following the steps that the FDA would now require them to take. But officials say the requirements could have saved lives and prevented illnesses in several of the large-scale outbreaks that have hit the country in recent years.


In a 2011 outbreak of listeria in cantaloupe that claimed 33 lives, for example, FDA inspectors found pools of dirty water on the floor and old, dirty processing equipment at Jensen Farms in Colorado where the cantaloupes were grown. In a peanut butter outbreak this year linked to 42 salmonella illnesses, inspectors found samples of salmonella throughout Sunland Inc.'s peanut processing plant in New Mexico and multiple obvious safety problems, such as birds flying over uncovered trailers of peanuts and employees not washing their hands.


Under the new rules, companies would have to lay out plans for preventing those sorts of problems, monitor their own progress and explain to the FDA how they would correct them.


"The rules go very directly to preventing the types of outbreaks we have seen," said Michael Taylor, FDA's deputy commissioner for foods.


The FDA estimates the new rules could prevent almost 2 million illnesses annually, but it could be several years before the rules are actually preventing outbreaks. Taylor said it could take the agency another year to craft the rules after a four-month comment period, and farms would have at least two years to comply — meaning the farm rules are at least three years away from taking effect. Smaller farms would have even longer to comply.


The new rules, which come exactly two years to the day President Barack Obama's signed food safety legislation passed by Congress, were already delayed. The 2011 law required the agency to propose a first installment of the rules a year ago, but the Obama administration held them until after the election. Food safety advocates sued the administration to win their release.


The produce rule would mark the first time the FDA has had real authority to regulate food on farms. In an effort to stave off protests from farmers, the farm rules are tailored to apply only to certain fruits and vegetables that pose the greatest risk, like berries, melons, leafy greens and other foods that are usually eaten raw. A farm that produces green beans that will be canned and cooked, for example, would not be regulated.


Such flexibility, along with the growing realization that outbreaks are bad for business, has brought the produce industry and much of the rest of the food industry on board as Congress and FDA has worked to make food safer.


In a statement Friday, Pamela Bailey, president of the Grocery Manufacturers Association, which represents the country's biggest food companies, said the food safety law "can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal."


The new rules could cost large farms $30,000 a year, according to the FDA. The agency did not break down the costs for individual processing plants, but said the rules could cost manufacturers up to $475 million annually.


FDA Commissioner Margaret Hamburg said the success of the rules will also depend on how much money Congress gives the chronically underfunded agency to put them in place. "Resources remain an ongoing concern," she said.


The farm and manufacturing rules are only one part of the food safety law. The bill also authorized more surprise inspections by the FDA and gave the agency additional powers to shut down food facilities. In addition, the law required stricter standards on imported foods. The agency said it will soon propose other overdue rules to ensure that importers verify overseas food is safe and to improve food safety audits overseas.


Food safety advocates frustrated over the last year as the rules stalled praised the proposed action.


"The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place," said Caroline Smith DeWaal of the Center for Science in the Public Interest.


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S&P 500 finishes at 5-year high on economic data

NEW YORK (Reuters) - The benchmark Standard & Poor's 500 index ended at a five-year high on Friday, lifted by reports showing employers kept up a steady pace of hiring workers and the vast services sector expanded at a brisk rate.


The gains on the S&P 500 pushed the index to its highest close since December 2007 and its biggest weekly gain since December 2011.


Most of the gains came early in the holiday-shortened week, including the largest one-day rise for the index in more than a year on Wednesday after politicians struck a deal to avert the "fiscal cliff."


The Dow Jones industrial average <.dji> gained 43.85 points, or 0.33 percent, to 13,435.21. The Standard & Poor's 500 Index <.spx> rose 7.10 points, or 0.49 percent, to 1,466.47. The Nasdaq Composite Index <.ixic> edged up 1.09 points, or 0.04 percent, to 3,101.66.


For the week, the S&P gained 4.6 percent, the Dow rose 3.8 percent and the Nasdaq jumped 4.8 percent to post their largest weekly percentage gains in more than a year.


The CBOE Volatility index <.vix>, a measure of investor anxiety, dropped for a fourth straight session, giving the index a weekly decline of nearly 40 percent, its biggest weekly fall ever. The close of 13.83 on the VIX marks its lowest level since August.


In Friday's economic reports, the Labor Department said non-farm payrolls grew by 155,000 jobs last month, slightly below November's level. Gains were distributed broadly throughout the economy, from manufacturing and construction to healthcare.


Also serving to boost equities was data from the Institute for Supply Management showing U.S. service sector activity expanding the most in 10 months.


With the S&P 500 index at a five-year closing high, analysts said any gains above the index's intraday high near 1,475 in September may be harder to come by.


"We are getting to a point where we need a strong catalyst, which could be earnings, it could be three months of good economic data, it could be a variety of things," said Adam Thurgood, managing director at HighTower Advisors in Las Vegas, Nevada.


"What is going on right now is this conflicting view of fundamentals look pretty good and improving, and then you've got these negative tail risks that could blow everything up," Thurgood said.


He referred to "a fiscal superstorm brewing" of issues still left unresolved in Washington, including tough federal budget cuts and the need to raise the government's debt ceiling all within a couple of months.


The rise in payrolls shown by the jobs data did not make a dent in the U.S. unemployment rate still at 7.8 percent.


A Reuters poll on Friday of economists at Wall Street's top financial institutions showed that most expect the Fed in 2013 to end the program with which it bought Treasury debt in an effort to stimulate the economy.


A drop in Apple Inc shares of 2.6 percent to $528.36 kept pressure on the Nasdaq.


Adding to concerns about Apple's ability to produce more innovative products, rival Samsung Electronics Co Ltd is expected to widen its lead over Apple in global smartphone sales this year with growth of 35 percent. Market researcher Strategy Analytics said Samsung had a broad product lineup.


Eli Lilly and Co was among the biggest boost's to the S&P, up 3.7 percent to $51.56 after the pharmaceuticals maker said it expects its 2013 earnings to increase to $3.75 to $3.90 per share, excluding items, from $3.30 to $3.40 per share in 2012.


Fellow drugmaker Johnson & Johnson rose 1.2 percent to $71.55 after Deutsche Bank upgraded the Dow component to a "Buy" from a "Hold" rating. The NYSEArca pharmaceutical index <.drg> climbed 0.6 percent.


Shares of Mosaic Co gained 3.3 percent to $58.62. Excluding items, the fertilizer producer's quarterly earnings beat analysts' expectations, according to Thomson Reuters I/B/E/S.


Volume was modest with about 6.07 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly below the 2012 daily average of 6.42 billion.


Advancing stocks outnumbered declining ones on the NYSE by 2,287 to 701, while on the Nasdaq, advancers beat decliners 1,599 to 866.


(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski and Kenneth Barry)



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India Ink: Rape Victim's Friend Details Attack and Delays in Getting Help

The male friend of a woman who died after being gang-raped and sexually assaulted with an iron rod in New Delhi described the attack for the first time publicly in an interview broadcast Friday.

The details of the vicious attack and its aftermath provided by the man paint a bleak picture of India’s capital city, one in which the assailants had laid a carefully planned trap and neither citizens nor police officials rushed to help a naked, bleeding couple who were left on the side of a highway.

From the time the two were thrown from the moving bus in which they were attacked until they were taken to a hospital, two hours had elapsed, he told Zee News, an Indian news channel.

“We were without clothes,” he said. “We tried to stop people passing by.” After 25 minutes someone called the police, he said. Then, after three police vans arrived, officers argued over who had jurisdiction over the case, he said. He had to carry his friend into the police vehicle, he said, after the police refused because she was bleeding too much.

The man, whose name was disclosed in early reports from Zee News but deleted in later reports, said the police did not take them to the closest hospital, but one farther away. “Even at the hospital we were made to wait and I had to literally beg for clothes,” he said.

The New Delhi police said they planned to file a case against Zee News for broadcasting the interview. The case will be filed under Section 228 (A) of the Indian Penal Code, which deals with the disclosure of identity of victims of certain crimes, including rape.

In the interview, the man said that the attack itself was well planned. “Apart from the driver and helper, others behaved like they were passengers,” he said, until after the couple paid the 20-rupee fee and sat down. “Then they started teasing my friend and the same led to a brawl,” he said. “I beat three of them up but then the rest brought an iron rod and hit me. Before I fell unconscious, they took my friend away.”

Read the interview with Zee News here.


This post has been revised to reflect the following correction:

Correction: January 5, 2013

An earlier version of this post said Delhi Police will sue Zee News, rather than file a case against them.

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iPad still dominates tablet Web traffic; Microsoft Surface has smaller share than PlayBook







The iPad is still by far the most widely used tablet for surfing the Web in North America, but it can no longer claim to lord over 90% of all North American tablet traffic. Via AppleInsider, the latest numbers from mobile advertising firm Chitika show that the iPad accounted for roughly 79% of all mobile traffic in the last week of December, a dominant share that was nonetheless a seven percentage point drop from the previous week.


[More from BGR: Samsung confirms plan to begin inching away from Android]






In contrast, Amazon’s (AMZN) Kindle Fire HD saw its traffic grow by three percentage points over the same period to account for 7.5% of all North American tablet traffic while Samsung’s (005930) Galaxy Tab models saw their share increase by nearly 1.5 percentage points to 4.39% of all North American tablet traffic.


[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]


Microsoft’s (MSFT) Surface was practically a non-factor in Chitika’s measurements, accounting for 0.4% of North American tablet traffic — even less than RIM’s (RIMM) BlackBerry PlayBook.


This article was originally published by BGR


Gadgets News Headlines – Yahoo! News




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George Lucas Engaged to Mellody Hobson















01/03/2013 at 07:35 PM EST







George Lucas and Mellody Hobson


Mike Coppola/Getty


George Lucas is following the Force – right down the aisle.

The Star Wars director, 68, is engaged to DreamWorks animation chairman Mellody Hobson, a rep for Lucasfilm confirmed to The Hollywood Reporter on Thursday.

Hobson, 43, has been dating Lucas since 2006. This will be her first marriage and Lucas's second; he previously was married to film editor Marcia Lou Griffin. The exes adopted a daughter Amanda before their 1983 divorce. Lucas went on to adopt two more children.

Lucas's fiancée is also a contributor to Good Morning America's financial segments and has received many honors, including a 2002 listing as one of Esquire's "Best and Brightest" in America.

Lucas has made headlines of his own, recently donating to an education foundation much of the $4 billion from his sale of Lucasfilm to Disney.

According to THR, Lucas said at the time, "As I start a new chapter in my life, it is gratifying that I have the opportunity to devote more time and resources to philanthropy."

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CDC: 1 in 24 admit nodding off while driving


NEW YORK (AP) — This could give you nightmares: 1 in 24 U.S. adults say they recently fell asleep while driving.


And health officials behind the study think the number is probably higher. That's because some people don't realize it when they nod off for a second or two behind the wheel.


"If I'm on the road, I'd be a little worried about the other drivers," said the study's lead author, Anne Wheaton of the Centers for Disease Control and Prevention.


In the CDC study released Thursday, about 4 percent of U.S. adults said they nodded off or fell asleep at least once while driving in the previous month. Some earlier studies reached a similar conclusion, but the CDC telephone survey of 147,000 adults was far larger. It was conducted in 19 states and the District of Columbia in 2009 and 2010.


CDC researchers found drowsy driving was more common in men, people ages 25 to 34, those who averaged less than six hours of sleep each night, and — for some unexplained reason — Texans.


Wheaton said it's possible the Texas survey sample included larger numbers of sleep-deprived young adults or apnea-suffering overweight people.


Most of the CDC findings are not surprising to those who study this problem.


"A lot of people are getting insufficient sleep," said Dr. Gregory Belenky, director of Washington State University's Sleep and Performance Research Center in Spokane.


The government estimates that about 3 percent of fatal traffic crashes involve drowsy drivers, but other estimates have put that number as high as 33 percent.


Warning signs of drowsy driving: Feeling very tired, not remembering the last mile or two, or drifting onto rumble strips on the side of the road. That signals a driver should get off the road and rest, Wheaton said.


Even a brief moment nodding off can be extremely dangerous, she noted. At 60 mph, a single second translates to speeding along for 88 feet — the length of two school buses.


To prevent drowsy driving, health officials recommend getting 7 to 9 hours of sleep each night, treating any sleep disorders and not drinking alcohol before getting behind the wheel.


__


Online:


CDC report: http://www.cdc.gov/mmwr


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Asian shares drop on Fed minutes, dollar extends gain

TOKYO (Reuters) - Asian shares fell on Friday, tracking overnight weakness in global equities, but the dollar gained as U.S. debt yields rose after several Federal Reserve officials expressed concerns about continuing to expand stimulative bond buying.


Minutes from the Fed's December policy meeting released on Thursday showed some voting members of the Federal Open Market Committee were increasingly concerned about the potential risks of the Fed's asset purchases on financial markets, even if it look set to continue an open-ended stimulus program for now.


The Fed's asset buying policy has been a crucial factor underpinning investor risk appetite and supporting global equities, so the more hawkish Fed minutes unnerved financial markets on Thursday, driving benchmark U.S. Treasury yields up to a near eight-month high and weighing on equities and oil, while bolstering the dollar.


The dollar extended gains early in Asia on Friday, hitting its highest since July 2010 against the yen at 87.78 while the euro fell to a three-week low of $1.3022. The U.S. dollar <.dxy> hit a near four-week high against a basket of major currencies on Thursday.


"The minutes have added a fresh degree of uncertainty into the investment climate, which is likely to mean a steeper yield curve. But equity investors should take heart from the fact that the Fed's perception is qualified on an improving economy," Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York, said in a note to clients.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> fell 0.4 percent, after scaling its highest since August 2011 on Thursday.


Australian shares <.axjo> slipped 0.5 percent, with investors pulling back after a sharp two-day rally which took shares to their highest in more than 19 months on Thursday.


"U.S. equities were due for a correction at any rate ... and the same is true of the KOSPI. Investors would do well to buy while shares are easing," Lee Seung-woo, an analyst at KDB Daewoo Securities, said of South Korean shares <.ks11>, which opened down 0.1 percent.


Japan's benchmark Nikkei stock average <.n225> opened sharply higher, up 2 percent, to its highest since March 2011 on the back of the tumbling yen. Japanese markets were closed from December 31 to January 3 for the new year's holidays. The Nikkei ended 2012 with the sharpest yearly gain since 2005. <.t/>


U.S. lawmakers earlier this week narrowly avoided falling off a "fiscal cliff" of automatic higher taxes and spending cuts, which had been set to kick in at the start of the year and threatened to derail the U.S. economy, providing an immediate boost for financial markets.


But U.S. President Barack Obama and congressional Republicans face tough talks on spending cuts and an increase in the nation's debt limit as the hard-fought deal to avert the fiscal cliff covered only taxes and delayed decisions on expenditures until March 1.


Investor sentiment was, on the other hand, supported by recent data showing activity in China's services sector and at U.S. factories expanded in December, which brightened the outlook for global growth.


The U.S. jobs market remained on a recovery track, with data on Thursday showing U.S. private-sector employers shrugged off the budget wrangling and stepped up hiring in December, heightening hopes for a strong nonfarm payrolls report due later on Friday.


The U.S. economy likely added 150,000 jobs in December, according to a Reuters survey of economists, up from 146,000 in November. The unemployment rate is expected to hold steady at 7.7 percent.


Resolution of the U.S. fiscal cliff crisis could spell trouble for some Asian assets that are coming off a stellar 2012 as investors could start to shift some money out of overpriced Asian investments in favour of the U.S. on a view that the fiscal deal manages to avert a U.S. recession and so boosts the prospects for American stocks.


U.S. crude inched down 0.2 percent to $82.78 a barrel.


(Additional reporting by Somang Yang in Seoul; Editing by Eric Meijer)



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