* Investors hunt for new growth drivers as recovery priced
in
* Shanghai stocks remain volatile, less influential on
region
* U.S. crude fails to hurdle $75, hovers at $72
By Kevin Plumberg
HONG KONG, Aug 26 (Reuters) - Asian stocks edged higher on
Wednesday, with thin summer trading volumes keeping prices
choppy and centred on short-term chart targets, while oil
hovered near $72 a barrel, capped by a surprising rise in U.S.
inventories.
U.S. single-family home prices grew for a second straight
month, a report showed overnight, confirming the recovery is on
track.
However, having already priced in an upturn in the global
economy, investors were looking for more signs that growth can
be sustained once the impact of massive government stimulus
spending fades.
Volatility in Chinese shares has also kept investors
guessing. The Shanghai composite index is down 14 percent so
far in August, on track for the biggest monthly decline since
the darkest month of the financial crisis in October 2008.
The precipitous move triggered questions on whether other
high flying equity markets were due for a correction. However,
to what extent a decline in the Chinese market, which is
largely closed to foreign investors, matters for global market
trends and perceptions of risk is an open question.
Japan's Nikkei share average drifted up 0.6 percent, within
reach of a 10-month high reached earlier in August.
"The (U.S. economic) data is encouraging because it points
to continued economic improvement, but the Nikkei won't rise
that much because investors are a bit wary about the chances of
an adjustment. After all, it has risen around 50 percent since
March," said Kenichi Hirano, operating officer at Tachibana
Securities in Tokyo.
Shares of index heavyweight Toyota Motor Corp <7203.T> rose
1.5 percent on a report the carmaker would cut global
production capacity and post an operating profit in the 2010
financial year. []
However, while news of the output cut shored up the stock,
it also reinforced worries about persistent weakness in global
consumer demand, which is key to a solid recovery.
The MSCI index of Asia Pacific stocks traded outside Japan
rose 0.1 percent <.MIAPJ0000PUS>, weighed by weakness in the
technology and consumer discretionary sectors -- two of the
most expensive segments of the Asian market.
Hong Kong's Hang Seng index <> was up 0.3 percent but
remained susceptible to ups and downs in the Shanghai composite
index <>, which was up 0.6 percent.
The Ifo survey of German business sentiment is expected to
show an across the board pickup later on Wednesday, playing
into the story that recoveries are taking hold around the
world.
However, in a worrying development, Japan's exports slipped
in July as annual drops in exports to the United States and
China accelerated, in a sign that the impact of stimulus
measures in major economies worldwide may be starting to wane.
[]
"Things have stopped getting worse, but a return to trend
gains in production and trade is a pipe-dream," Patrick
Bennett, Asia foreign exchange and rates strategist with
Societe Generale in Hong Kong, said in a note.
U.S. oil futures for October delivery <CLc1> were largely
unchanged on the day around $72 after a 3 percent drop
overnight on profit taking after the market was unable to push
crude above $75 a barrel.
Inventory data from the American Petroleum Institute late
on Tuesday showed a big buildup in U.S. crude oil stocks last
week, keeping a lid on the market.
Still, that appeared only a short-term setback. Analysts
raised their 2010 median price forecast for a fifth straight
month to $73.39. []
The yen edged up in quiet trade, lifted by Japanese
exporters and short-term investors.
The U.S. dollar slipped 0.2 percent to 93.98 yen <JPY=>.
Sterling fell 0.4 percent to 153.33 yen <GBPJPY=R>, and the
euro was down 0.2 percent to 134.38 yen <EURJPY=R>.
The Australian dollar inched up 0.1 percent to US$0.8357
<AUD=> and this week has been less reactive to domestic Chinese
stock market moves. Earlier in August, sudden drops in the
Shanghai market sucked the Australian currency down with it.
(Additional reporting by Elaine Lies in TOKYO)
(Editing by Kim Coghill)
