(Corrects reference in para seven to read China is Asia's
second-largest economy)
* Asia stocks rise 0.4 pct on strong China growth, earnings
* Nikkei up 0.7 pct, heads toward 18-mth high
* Japan manufacturers' gloomy mood finally lifts
* Dollar subdued while commodity currencies shine
By Vikram S Subhedar
SINGAPORE, April 15 (Reuters) - Asian stocks rose on
Thursday as China's economic growth accelerated and bellwether
U.S. tech and financial firms reported strong results, boosting
appetite for riskier assets and putting the U.S. dollar on the
defensive.
Japan's Nikkei average <> gained 0.7 percent, while
the MSCI index of Asian shares outside Japan <.MIAPJ0000PUS>
rose 0.58 percent, near a two-year high.
Shares of energy firms saw some of the strongest gains
after oil prices jumped more than 2 percent overnight, boosted
by a surprise drop in U.S. crude oil inventories and dollar
weakness.
"There's probably enough catalysts to keep us moving
forward, assuming the earnings results are as solid as they're
expected to be," said IG Markets analyst Cameron Peacock in
Australia.
China's annual economic growth quickened in the first
quarter to 11.9 percent, the fastest pace since 2007,
benefiting from a low base of comparison last year and the
momentum imparted by massive bank-financed stimulus.
[]
China has largely led a global recovery amid persistent
weakness in Western economies, and its voracious demand for raw
materials has supported a rally in commodity markets and
currencies of resource-rich countries such as Australia.
The data from Asia's second-largest economy, which beat
analysts' expectations, added to speculation that Beijing may
be preparing to loosen its tight grip on the yuan currency
<CNY=CFXS>.
While its robust growth supports the case for tighter
monetary policy to avert overheating, some analysts said an
easing of inflation in March may convince policymakers to hold
off on interest rate hikes and focus on the yuan instead.
"For those who were looking for an imminent interest rate
adjustment, this firmly skews the next policy move towards
being a yuan revaluation," said Glenn Maguire, chief Asian
economist at Societe Generale.
Any move by China to revalue its currency is likely to give
a further boost to Asian currencies and weigh on the U.S.
dollar.
Economic reports from the United States and Japan also
bolstered hopes that the global recovery will prove to be
sustainable.
U.S. stocks rose for a fifth straight day overnight after
March retail sales beat expectations and as Intel Corp <INTC.O>
and JPMorgan Chase & Co <JPM.N> posted better-than-expected
results. For details see [] and [].
More stocks hit a 52-week high on the New York Stock
Exchange than on any day since the end of December 2003. The
Nasdaq recorded its greatest number of 52-week highs since
January 2004. "There were some concerns earlier this week
about earnings of U.S. financial companies, including JPMorgan,
and the market is now receiving a lift after the actual report
and strong gains in financial shares overnight," said Yumi
Nishimura, deputy general manager at Daiwa Securities Capital
Markets.
In Japan, a Reuters poll showed companies seemed to have
shaken off their long gloomy spell as robust exports continue
to drive the economy's recovery, though firms remained
cautious.
Manufacturers' sentiment moved out of negative territory
for the first time in two years thanks to solid exports to
China and the rest of Asia, while service-sector firms were the
least pessimistic since October 2008. []
CURRENCY TREMORS
The increase in investors' appetite for riskier assets and
speculation about a Chinese move on the yuan prompted investors
to move into commodity currencies and out of the U.S. dollar.
The Australian dollar <AUD=D4> edged up to $0.9361, from
$0.9347 on Wednesday when it rallied nearly 0.7 percent. China
is the single largest buyer of Australia's commodity exports.
Investors have already been trimming long positions in the
U.S. dollar after Singapore effectively revalued its currency
<SGD=> earlier this week, fanning expectations that more Asian
countries will allow their currencies to appreciate.
The dollar index against major currencies <.DXY> was flat
at 80.196, but a break below 80 risks a test of support near
79.50/55--its March 17 low.
"We were looking for U.S. growth to surprise on the upside
but that is now mostly priced in," Westpac said in a note. "The
DXY looks like a 79-82 range trade for the time being but we
still strongly favour a topside break."
Adding to the dollar's soft tone was Federal Reserve
Chairman Ben Bernanke comments that U.S. interest rates will
stay low for some time, reducing its yield appeal. []
The dollar edged up against the yen <JPY=> to 93.37 yen,
from 93.19 yen late in New York.
The euro <EUR=> edged up to $1.3660, having risen nearly
0.4 percent on Wednesday. But increased scepticism about an
EU-IMF bailout package for Greece is likely to limit its
gains.
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