Yen falls as Japan forms new government, supporting Nikkei

TOKYO (Reuters) - The yen fell to a 20-month low against the dollar on Wednesday, buoying the benchmark Nikkei stock average, as Japan ushers in a new prime minister eager to pursue drastic stimulus steps to drive the country's economy out of deflation.

Asian shares and other assets were capped in thin holiday trade, with investors focusing on the fate of U.S. negotiations to avert a budget crunch looming at the end of the year.

Markets in Singapore <.ftsti>, Malaysia <.klse>, Indonesia <.jkse>, the Philippines <.psi> and South Korea <.ks11> were closed on Tuesday for the Christmas holiday, reopening on Wednesday.

Hong Kong and Australia remain closed on Wednesday. Europe also will not trade but, U.S. markets reopen later in the day.

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> inched up 0.1 percent, after rising 0.3 percent the previous day on the back of a surge in Shanghai shares <.ssec> to five-month highs and a jump in Taiwan shares <.twii>.

Shinzo Abe, whose party won a landslide victory in an election earlier this month, will be sworn in as Japan's premier on Wednesday, when he is also expected to appoint his cabinet. He is prescribing a mix of aggressive monetary policy easing and big fiscal spending to beat deflation and rein in the strong yen.

He has kept up pressure on the Bank of Japan to deliver much stronger monetary easing policies and called for a 2 percent inflation target to beat deep-rooted deflation, pushing the yen to a 20-month low of 85.38 yen on trading platform EBS on Wednesday. Traders eyed the dollar's 2011 high of 85.53 yen as the next target.

The euro rose as high as 112.47 yen on EBS, approaching its 16-month high of 112.59 yen hit on December 19.

The weaker yen has bolstered hopes for better earnings from Japanese companies and underpinned the Nikkei, which has gained some 17 percent since mid-November when the election was scheduled, fuelling expectations for Abe's party to win. The yen has lost nearly 8 percent against the dollar in the same period.

The Nikkei <.n225> was up 0.4 percent, holding above the key 10,000 mark. <.t/>

"Most foreign funds have added Japanese shares and there are fewer participants today, but there still is a reason for the Nikkei to rise," said Hideyuki Okoshi, general manager at Chibagin Securities. "Not only exporters but investors are buying other stocks which could benefit under the new government."

Japanese government debt prices fell, with the 10-year bond futures falling to a three-month low of 143.65 in active trade. The 10-year JGB yield rose 1.5 basis points to 0.780 percent, matching a six-week high hit on December 19.

"We continue to see equities going high, so the pressure is on the long end of the JGB curve. For the short end of the curve, we continue to see the BOJ ease aggressively, so there is no change in that," said Tadashi Matsukawa, head of Japan fixed income at PineBridge Investments.

Minutes of the BOJ's policy-setting meeting in November showed on Wednesday that some board members said the central bank must act decisively, without ruling out any policy options, if the outlook for the economy and prices worsens further.

The dollar was also expected to stay firm this week as investors repatriate dollars, and as the U.S. fiscal impasse is likely to continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.

President Barack Obama may return to Washington from his Hawaiian holiday as early as Wednesday evening to address the unfinished "fiscal cliff" negotiations with Congress, an administration official said on Tuesday.

House of Representatives Speaker John Boehner failed to gain support for a tax plan at the end of last week, raising fears that the United States may face the fiscal cliff of some $600 billion in automatic spending cuts and tax increases set to start on January 1.

"The main index is rebounding after treading water on Monday and dropping on Friday, as investors eye the progress of U.S. fiscal negotiations," Kim Soo-young, an analyst at KB Securities, said of South Korean shares <.ks11> which turned 0.7 percent higher in low holiday volume.

Activity is likely to remain subdued, with volume low and without major economic news.

Later in the session, Thailand will release trade data, which is expected to show exports in November posting very high annual growth compared with low levels last year that reflected the damage from the flooding.

South Korea's key consumer sentiment index held steady in December from November and stood below the neutral point for a fifth consecutive month, the central bank said on Wednesday, diminishing hopes of a quick economic rebound.

Gold edged lower on Wednesday on uncertainty over whether the fiscal cliff, but a weaker yen sparked a rally in bullion futures on the Tokyo Commodity Exchange (TOCOM).

(Additional reporting by Ayai Tomisawa and Dominic Lau in Tokyo and Joyce Lee in Seoul; Editing by Daniel Magnowski and Chris Gallagher)

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Egypt approves constitution drafted by Mursi allies

CAIRO (Reuters) - Egyptian voters overwhelmingly approved a constitution drafted by President Mohamed Mursi's allies, results announced on Tuesday showed, proving that liberals, leftists and Christians have been powerless to halt the march of Islamists in power.

Final elections commission figures showed the constitution adopted with 63.8 percent of the vote in the referendum held over two days this month, giving Mursi's Islamists their third straight electoral victory since veteran autocrat Hosni Mubarak was toppled in a 2011 revolution.

Opposition groups had taken to the streets to block what they see as a move to ram through a charter that mixes politics and religion dangerously and ignores the rights of minorities.

Mursi says the text - Egypt's first constitution since Mubarak's fall - offers enough protection for minorities, and adopting it quickly is necessary to end two years of turmoil and political uncertainty that has wrecked the economy.

"I hope all national powers will now start working together now to build a new Egypt," Murad Ali, a senior official in the Muslim Brotherhood's Freedom and Justice Party, told Reuters.

"I see this as the best constitution in Egypt's history."

In a sign that weeks of unrest have taken a further toll on the economy, the government ordered new restrictions on foreign currency apparently designed to prevent capital flight. Leaving or entering with more than $10,000 cash is now banned.

Two years since waves of unrest broke out across the Middle East and North Africa - sweeping away long-entrenched rulers in Tunisia, Libya and Yemen as well as Egypt - well-organized Islamist parties have emerged as the main beneficiaries.

Urban secularists and liberals who were behind the revolts complain that their success has been hijacked.

"We need a better constitution," said Khaled Dawood, an opposition spokesman. "It does not represent all Egyptians."

Mursi's opponents say the new constitution could allow clerics to intervene in lawmaking, while offering scant protections to minorities and women. Mursi dismisses those criticisms, and many Egyptians are fed up with street protest movements that have prevented a return to normality.

Immediately after the announcement, a small group of protesters set tires on fire and blocked traffic near the central Tahrir square, the cradle of Egypt's uprising, but there were no immediate signs of violence or major demonstrations.

Washington, which provides billions of dollars a year in military and other support for Egypt and regards it as a pillar of security in the Middle East, called on Egyptian politicians to bridge divisions and on all sides to reject violence.

"President Mursi, as the democratically elected leader of Egypt, has a special responsibility to move forward in a way that recognizes the urgent need to bridge divisions," State Department spokesman Patrick Ventrell said. He noted that many Egyptians had voiced "significant concerns" over the constitutional process.

WORSENING ECONOMY

The government says its opponents are worsening the economic crisis by prolonging political upheaval. It has pledged to impose unpopular tax increases and spending cuts to win a loan package from the International Monetary Fund.

The ban on travelling with more than $10,000 in cash followed a pledge by the central bank to take unspecified measures to protect Egyptian banks. Some Egyptians have begun withdrawing their savings in fear of more restrictions.

"I am not going to put any more money in the bank and neither will many of the people I know," said Ayman Osama, father of two young children.

He said he had taken out the equivalent of about $16,000 from his account this week and planned to withdraw more, adding that he had also told his wife to buy more gold jewellery.

The "yes" vote paves the way for a parliamentary election in about two months, setting the stage for another battle between surging Islamists and their fractious opponents.

The final result, announced by the election commission, matched - to the last decimal place - an earlier unofficial tally announced by Mursi's Muslim Brotherhood.

But the opposition said it was disappointed - it had appealed for the result to be amended to reflect what it described as major vote violations during the two-round vote.

Officials said there were no violations serious enough to change the result significantly. "We have seriously investigated all the complaints," said judge Samir Abu el-Matti of the Supreme Election Committee. The final turnout was 32.9 percent.

SENSE OF CRISIS

The referendum has sharpened painful divisions in the Arab world's most populous nation and a growing atmosphere of crisis has gripped Egypt's polarized society.

Anxiety about the economy deepened this week when Standard and Poor's cut Egypt's long-term credit rating. Prime Minister Hisham Kandil told the nation of 83 million on Tuesday the government was committed to fixing the economy.

"The main goals that the government is working towards now is plugging the budget deficit, and working on increasing growth to boost employment rates, curb inflation, and increase the competitiveness of Egyptian exports," he said.

The referendum follows Islamist victories in parliamentary and presidential elections, representing a decisive shift in a country at the heart of the Arab world where Mursi's Muslim Brotherhood was suppressed for generations by military rulers.

However, secularist and liberal opposition members hope they can organize better in time for the next parliamentary vote.

Hossam El-Din Ali, a 35-year-old newspaper vendor in central Cairo, said he agreed the new constitution would help bring some political stability but like many others he feared the possible economic austerity measures lying ahead.

"People don't want higher prices. People are upset about this," he said. "There is recession, things are not moving. But I am wishing for the best, God willing."

(Additional reporting by Patrick Werr, Tamim Elyan, Ahmed Tolba and Marwa Awad; Writing by Maria Golovnina)

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Instagram furor triggers first class action lawsuit

SAN FRANCISCO (Reuters) – Facebook‘s Instagram photo sharing service has been hit with what appears to be the first civil lawsuit to result from changed service terms that prompted howls of protest last week.

In a proposed class action lawsuit filed in San Francisco federal court on Friday, a California Instagram user leveled breach of contract and other claims against the company.

“We believe this complaint is without merit and we will fight it vigorously,” Facebook spokesman Andrew Noyes said in an e-mail.

Instagram, which allows people to add filters and effects to photos and share them easily on the Internet, was acquired by Facebook earlier this year for $ 715 million.

In announcing revised terms of service last week, Instagram spurred suspicions that it would sell user photos without compensation. It also announced a mandatory arbitration clause, forcing users to waive their rights to participate in a class action lawsuit except under very limited circumstances.

The current terms of service, in effect through mid-January, contain no such liability shield.

The backlash prompted Instagram founder and CEO Kevin Systrom to retreat partially a few days later, deleting language about displaying photos without compensation.

However, Instagram kept language that gave it the ability to place ads in conjunction with user content, and saying “that we may not always identify paid services, sponsored content, or commercial communications as such.” It also kept the mandatory arbitration clause.

The lawsuit, filed by San Diego-based law firm Finkelstein & Krinsk, says customers who do not agree with Instagram’s terms can cancel their profile but then forfeit rights to photos they had previously shared on the service.

“In short, Instagram declares that ‘possession is nine-tenths of the law and if you don’t like it, you can’t stop us,’” the lawsuit says.

Kurt Opsahl, a senior staff attorney with the Electronic Frontier Foundation who had criticized Instagram, said he was pleased that the company rolled back some of the advertising terms and agreed to better explain their plans in the future.

However, he said the new terms no longer contain language which had explicitly promised that private photos would remain private. Facebook had engendered criticism in the past, Opsahl said, for changing settings so that the ability to keep some information private was no longer available.

“Hopefully, Instagram will learn from that experience and refrain from removing privacy settings,” Opsahl said.

The civil lawsuit in U.S. District Court, Northern District of California, is Lucy Funes, individually and on behalf of all others similarly situated vs. Instagram Inc., 12-cv-6482.

(Reporting by Dan Levine; Editing by Dan Grebler)

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Jack Klugman, Odd Couple and Quincy, M.E. Star, Dies

By Stephen M. Silverman

12/24/2012 at 07:35 PM EST

Jack Klugman, The Odd Couple and Quincy, M.E. star beloved by TV, movie and theater audiences for five decades, died in Los Angeles on Monday, one of his sons told the Associated Press. He was 90.

"He had a great life and he enjoyed every moment of it and he would encourage others to do the same," son Adam Klugman said of his father, who had lost his voice to throat cancer in 1980 and then taught himself to speak again through breath control.

With Tony Randall on ABC's adaptation of the smash Neil Simon play and movie of the '60s, Klugman played sloppy Oscar Madison from 1970 to 1975 to Randall's Felix Unger, and though they really were an odd couple, offscreen they were adoring friends. Randall died in 2004.

Born in Philadelphia, Klugman started acting in college, and his film credits included the all-star courtroom drama 12 Angry Men. On Broadway he starred as the love interest Herbie in the original production of the quintessential backstage musical, Gypsy, with the legendary Ethel Merman.

Klugman's wife, actress-comedian Brett Somers, costarred on The Odd Couple as his ex-wife Blanche. According to the AP, they married in 1953 and had two sons, Adam and David, and had been estranged for years at the time of her death in 2007.

Besides their sons, Klugman is survived by Peggy Crosby, whom he married in February 2008.

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Predicting who's at risk for violence isn't easy

CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.

Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.

But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.

"They're yellow flags. They only become red flags once the blood is spilled," he said.

Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.

Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)

Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.

Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.

"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."

The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."

In a guidelines for families, the academy lists several risk factors for violence, including:

—Previous violent or aggressive behavior

—Being a victim of physical or sexual abuse

—Guns in the home

—Use of drugs or alcohol

—Brain damage from a head injury

Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.

Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.

Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.

According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.

Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.

Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.

And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.

All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.

Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.

Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.

Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.

___

Online:

American Academy of Child & Adolescent Psychiatry: http://www.aacap.org

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Yen on defensive on U.S. fiscal worry, helps Nikkei

TOKYO (Reuters) - Uncertainty over whether U.S. lawmakers will strike a deal by an end-of-year deadline to avert a severe fiscal retrenchment undermined the yen and bolstered Japanese shares, but trading volume was low with many participants on Christmas holiday.

House of Representatives Speaker John Boehner failed to gain support for a tax plan at the end of last week, raising fears that the United States may face the "fiscal cliff" of some $600 billion in automatic spending cuts and tax increases set to start on January 1.

U.S. lawmakers and President Barack Obama were on Christmas holiday and talks were unlikely to resume until later in the week.

The dollar rose to a 20-month high of 84.965 yen early on Tuesday in Asia, as Japanese players caught up with global players who had reacted overnight to incoming Japanese Prime Minister Shinzo Abe's comments that stepped up pressure on the Bank of Japan.

Abe said on Japanese television on Sunday that he will try to reform a law guaranteeing the BOJ's independence if his demand for a binding inflation target is not met. The yen has been pressured by expectations that the BOJ will be compelled to adopt more drastic monetary stimulus measures next year.

The dollar was expected to stay firm this week as investors repatriate dollars, and as the U.S. fiscal impasse will likely continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.

"The dollar is seen relatively well bid, with all focus on the fiscal cliff," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.

"Negotiations may be carried over the weekend, but markets still expect a deal to be struck by December 31. It is unthinkable that the U.S. will risk driving its economic growth sharply lower by not agreeing to avoid it."

Japan's Nikkei stock average <.n225> resumed trading after a three-day weekend with a 1.5 percent gain, recapturing the key 10,000 mark it ceded on Friday after Boehner's failure sparked a broad market sell-off and the Tokyo benchmark closed down 1 percent. <.t/>

"Ongoing optimism about the weak yen is lifting hopes that exporters' earnings will be better than expected," said Hiroichi Nishi, general manager at SMBC Nikko Securities.

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> has barely moved as most Asian bourses were closed for Christmas.

Taiwan shares <.twii> were up 0.1 percent on gains in technology shares and financial heavyweights, while Shanghai shares <.ssec> were down 0.3 percent in early trade.

Goro Ohwada, president and CEO at Japan-based fund of hedge funds Aino Investment Corp, said investors were likely to focus on economic fundamentals and the United States for cues on investment direction in 2013.

"There is a feeling that an investment strategy based on economic fundamentals may finally work next year, with asset prices more closely reflecting fair value. The problem is, we don't know yet which asset is a better bet than others," he said.

There is also hope for new policies from the United States for the next four years now that the presidential elections are over, he said.

(Additional reporting by Ayai Tomisawa in Tokyo; Editing by Edmund Klamann)

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U.N. General Assembly voices concern for Myanmar's Muslims

UNITED NATIONS (Reuters) - The U.N. General Assembly expressed serious concern on Monday over violence between Rohingya Muslims and Buddhists in Myanmar and called upon its government to address reports of human rights abuses by some authorities.

The 193-nation General Assembly approved by consensus a non-binding resolution, which Myanmar said last month contained a "litany of sweeping allegations, accuracies of which have yet to be verified."

Outbreaks of violence between ethnic Rakhine Buddhists and the Rohingyas have killed dozens and displaced thousands since June. Rights groups also have accused Myanmar security forces of killing, raping and arresting Rohingyas after the riots. Myanmar said it exercised "maximum restraint" to quell the violence.

The unanimously adopted U.N. resolution "expressing particular concern about the situation of the Rohingya minority in Rakhine state, urges the government to take action to bring about an improvement in their situation and to protect all their human rights, including their right to a nationality."

At least 800,000 Muslim Rohingyas live in Rakhine State along the western coast of Myanmar, also known as Burma. But Buddhist Rakhines and other Burmese view them as illegal immigrants from neighboring Bangladesh who deserve neither rights nor sympathy.

The resolution adopted on Monday is identical to one approved last month by the General Assembly's Third Committee, which focuses on human rights. After that vote, Myanmar's mission to the United Nations said that it accepted the resolution but objected to the Rohingyas being referred to as a minority.

"There has been no such ethnic group as Rohingya among the ethnic groups of Myanmar," a representative of Myanmar said at the time. "Despite this fact, the right to citizenship for any member or community has been and will never be denied if they are in line with the law of the land."

(Reporting By Louis Charbonneau; Editing by Paul Simao)

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How to Get Free Last-Minute Shipping

First, the bad news: the cut off for free shipping on most online sites was Tuesday, Dec 18^th. But the good news – we’ve got some sneaky ways to finagle free rush shipping and a list of sites still offering free shipping guaranteed to arrive before December 25^th.

Free Rush Shipping
Some of the biggest online retailers are still offering free last minute shipping:

• Barnes & Noble – free shipping on Nook HD through Dec. 22


• MacMall – free 2-day shipping on orders over $ 299 and under 25lbs – through 6 p.m. PST Dec. 22.


• Macy’s – free shipping on orders over $ 99. Place order 11:59 p.m. EST Dec. 20.


• The Northface – free 2-day shipping on everything through 11:59 p.m. Dec. 19.


• Walmart.com has extended free shipping through December 19^th on some items (check product page for eligibility)


• Overstock.com – free shipping on select gifts. Place order by Dec. 22 to receive by Christmas.


• Newegg   Free 2-Day shipping on over 200 items


• Target – free shipping on Daily Deals


• Victoria’s Secret – free shipping on orders over $ 100 using code “SHIP12.” Order by 5 p.m. EST on Dec. 20.


• Zappos – free shipping for all items with guaranteed Christmas delivery if ordered by 11:59 p.m. PST Dec. 22.

And the biggest of the big online retailers, Amazon, has a limited set of items available for free expedited shipping. These include jewelry, watches, clothing, video games, laptops, headphones, and kitchen items.

[Related: Great Gifts for Under $ 25]

But since many of the above deals are limited to select items, take a look at…

How to Get Free 2-Day Shipping on Just About Everything
Amazon Prime is a yearly subscription service. In exchange for a $ 79 fee, you get free 2 day shipping all year long. And yes, that also applies at Christmas (must order by 3 p.m. EST Dec. 22 to receive on time). Best deal is that you can get a free 6-month trial.

And here’s the real sneaky surprise: Do you have a family member who already belongs to Prime? They can nominate up to four people for the same free shipping benefits. Prime members nominate someone by going to their account, clicking “Settings” and “Manage Prime Membership.”

Also, Amazon Student is a free 6-month membership to Prime with all the benefits, providing you have an email address that ends in .edu.

But you don’t have to limit yourself to Amazon. Shoprunner.com also offers free 2-day shipping, though the membership service costs $ 8.95 a month – so not entirely free, but if you have numerous items still to buy, you could save a bundle.  And Shoprunner has tons of participating online retailers like Toys R Us, Sports Authority, Claire’s, PetSmart and EMS. Say you want to buy something from PetSmart.com, if you sign in with Shoprunner, many of the items on the site will be eligible for free 2-day shipping. One more thing to try: I was able to sign up for a free 1-year membership to Shoprunner using the promo code RUNNER. The site implied I had to be an American Express member, but it never asked for my details about the credit card, and now I have a membership. Good luck.

Ship to Store
Finally, the best last-minute option for many is to ship to store. You peruse all the options from home, pay online, and then pick up your selection at your local store. Tons of big retailers offer this service, and it guarantees your item will be in stock and waiting for you at customer service. Major retailers offering free Ship to Store include:

• Best Buy


• Target


• Toys R Us


• Walmart


• Sears

[Related: Best E-Reader for Under $ 100]

Brad Marshland contributed to this story.

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Sandy Hook Shootings: How to Cope

By Howard Breuer

12/23/2012 at 06:00 PM EST

State police personnel lead children to safety away from the Sandy Hook Elementary School

Shannon Hicks/Newtown Bee/Reuters/Landov

The Sandy Hook massacre, in which 20 innocent children and six heroic elementary school faculty members were gunned down last Friday, is particularly difficult for people – even those thousands of miles away from Newtown, Conn. – to process, according to mental health experts.

"This tragedy is so deeply affecting the national psyche, reminding us of 9/11, because of its assault on Norman Rockwell's vision of America," psychiatrist Carole Lieberman tells PEOPLE.

Friday was proclaimed a national day of mourning for those lost a week ago, with a moment of silence called for at 9:30 a.m. Eastern time, as 26 churchbells rang in Newtown and elsewhere. In addition, First Lady Michelle Obama sent an open letter of condolence to the town, saying the entire nation "is holding you in our hearts."

But how do those directly involved with the tragedy find the strength to cope?

To do that, family members who lost loved ones need immediate counseling and to maintain their normal routines. They also need to draw support from other affected families who can relate to what they're going through, says Dr. Stephanie N. Marcy, a psychologist at Children's Hospital Los Angeles.

"I think the people on the ground are feeling a sense of hopelessness because there is no way to justify what happened," Marcy says. "They need to be around other people who have experienced and understand it. If you were all involved together, you can empathize and grieve together."

In many of these families, the remaining children might have survivor's guilt, she adds.

"They rethink what they did that day and wonder if they in some way contributed to the death of a sibling, or they wonder, why did I survive?" Marcy says.

Therapists will need to explain to kids who lost a sibling that their "false belief that they should have been able to prevent it is not correct," adds Marcy.

Children at Sandy Hook may also have Post-Traumatic Stress Disorder and will need therapy, Lieberman says.

What to Tell Children

And what do parents whose children were not involved in the tragedy tell their own youngsters about what happened? That, Marcy says, depends on how old they are and how much they know already.

"Kindergarteners and first graders don't need to be told about it unless you think they will hear it somewhere else. For older kids, you have to get to know what they know, answer any questions they might have, and be truthful – but don't say too much," Marcy says. "Say that a person who was having problems, that was sick, went into a school and injured some people for no particular reason. Tell them it would never happen at their school."

"Yes," she adds, "it could happen anywhere. But there's no point in letting your child think that, [because] they may be flooded with fear."

For the adults and children across the country who have been vicariously traumatized, Marcy says, "We need to regain our sense of control, because this type of event makes us feel completely helpless."

Lieberman adds that Americans "are also feeling a generalized anxiety, a fear that no place is safe anymore. They need to talk to friends and family, get involved in championing causes that make society better, to volunteer for charities, and to get psychotherapy if the sadness and anxiety persist."

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Asian shares steady, U.S. budget concerns weigh

TOKYO (Reuters) - Asian shares steadied in quiet pre-holiday trade after a slump late last week, but markets have become more jittery about the risk of the United States failing to avert a fiscal crisis.

Activity in other assets was also subdued, with spot gold steadying as investors took to the sidelines, while oil extended losses, with U.S. crude inching down 0.2 percent to remain below $89 a barrel while Brent futures also eased 0.2 percent to $108.78.

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was up 0.07 percent after falling to a near two-week low on Friday when House of Representatives Speak John Boehner failed to gain support for a tax plan, raising fears the U.S. may not be able to avert the "fiscal cliff" of automatic spending cuts and tax increases set to start January 1.

The White House on Friday tried to rescue stalled talks but there was little headway as lawmakers and President Barack Obama abandoned Washington for Christmas.

Many market players still expect both sides to reach a compromise before the year-end deadline but heightening tensions were likely to stifle trade already slowed by the holidays.

U.S. Treasuries gained a safety bid on Friday from fiscal cliff worries, which put many investors on edge and drove down global equities markets, the euro and oil futures.

Australian shares <.axjo> were up 0.2 percent but trade was extremely thin, with Monday's session shortened ahead of the two-day Christmas holiday and many players already away.

South Korean shares <.ks11> edged up 0.1 percent in light trading before Christmas Day, with the weakening Japanese yen and U.S. fiscal uncertainty keeping investors uneasy.

"With a dearth of good news, shares will undergo corrections in the final week of this year, albeit within a limited range" said Park Hyeong-joong, an analyst at Meritz Securities.

"A chance is growing that the U.S. fiscal issue will not be resolved by this year-end," Park said.

Japanese financial markets are closed for a public holiday and will resume trading on Tuesday.

The dollar inched up 0.2 percent to 84.38 yen, having fallen below 84 yen on Friday. The dollar hit a 20-month high of 84.62 yen on December 19.

The yen has been pressured by expectations the Bank of Japan will be compelled to adopt more drastic monetary stimulus measures next year as incoming prime minister Shinzo Abe has demanded bolder action by the central bank to bring Japan out of decades-long deflation.

Abe stepped up pressure over the weekend, saying on Japanese television on Sunday that he will try to revise a law guaranteeing the BOJ's independence if his demand for a binding inflation target is not met.

Currency speculators increased their bets against the U.S. dollar in the latest week, according to data from the Commodity Futures Trading Commission released on Friday. Bets against the yen fell after reaching a more than five-year peak.

But market players generally see the dollar staying firm for now as a U.S. fiscal impasse will likely continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.

"It looks like all momentum for the fiscal cliff negotiations is gone," said Rob Ryan, strategist for RBS in Singapore. While the dollar could sway by year-end flows, "on balance I would see a stronger U.S. dollar into the end of the year," Ryan said.

EPFR Global, a fund-tracking firm, said on Friday that investors around the world pulled $4.1 billion from bond funds worldwide during the week ending December 19, the most since August 2011, and favored riskier stock exchange-traded funds despite the U.S. budget worry.

ETFs are generally believed to represent the behavior of institutional investors, and can be used opportunistically to bet on various indexes.

The euro stood steady around $1.3180.

In Italy, Mario Monti announced on Sunday he would consider seeking a second term as Italian prime minister if approached by allies committed to backing his austere brand of reforms. Monti resigned on Friday but has faced growing calls to seek a second term at a parliamentary election on February 24-25.

At stake is the leadership of the world's eighth largest economy, where recession and public debt of more than 2 trillion ($2.6 billion) have aggravated investor concerns about growth and stability in the euro zone.

Italy faces a huge bond redemption in the first quarter of 2013 and its failure to secure funding could refuel concerns about sovereign financing not only in Italy but also similarly indebted Spain, hurting sentiment towards the euro.

(Additional reporting by Hyunjoo Jin in Seoul and Masayuki Kitano in Singapore; Editing by Eric Meijer)

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