* Asian shares hit new 2009 high on global manufacturing
data
* Other riskier assets falter: oil dips after Monday rally
* Australia's RBA hits Aussie after keeping easing bias
* Government bonds sold off in Japan tracking U.S.
Treasuries
(Updates with European markets outlook; latest Asian prices)
By Rafael Nam
HONG KONG, June 2 (Reuters) - Improving global
manufacturing data lifted Asian shares on Tuesday near levels
before the collapse of Lehman Brothers in September, but the
pace of gains slowed as investors pondered how much longer a
heady three-month rally will last.
Reports on Monday showed easing contractions in
manufacturing activity in the United States, the euro zone and
Britain last month, while China reported a further expansion in
factory activity. []
The data reinforced expectations the worst in the global
economy is over, while the widely expected bankruptcy filing by
General Motors <GM.N> on Monday removed another uncertainty
looming over financial markets, at least in the near-term.
[]
However, some of the other riskier asset classes which rose
on Monday stalled or fell in Asia on Tuesday, highlighting
investor caution after a steady run-up in prices. European
shares were set to fall in a breather to the previous sessions'
rally.
U.S. crude futures <CLc1> fell on Tuesday but held above
$68 a barrel as investors took profits from a jump of more than
3 percent the day before which carried oil to its highest level
since early November.
Safe-havens such as the dollar also steadied on Tuesday
after falling in the previous session.
"A recovery is well underway and the market is following
positive economic news," said Brian Eley, fund manager with
Eley Griffiths, which oversees about A$500 million ($406
million) in Australia.
Eley added materials, energy and cyclical stocks would show
the strongest moves in the initial phase though he also warned
the rally could fade.
"There is always some doubt as often these rallies can
over-shoot the fundamentals," he said.
The MSCI index of Asian stocks outside Japan
<.MIAPJ0000PUS> rose 0.5 percent after earlier in the day
hitting its highest since Sept. 29, just weeks after the
Lehman's catastrophic collapse. The gain was modest when
compared to the combined 5.2 percent jump in the previous two
sessions.
The index has now surged some 65 percent from lows in early
March, spurred by signs of stabilisation in the battered
banking sector and credit markets, and by hopes that the global
downturn was bottoming out.
The MSCI index is not far off the levels of Sept. 12, the
Friday before Lehman collapsed, sparking a rout in global
markets that hit its nadir in early March.
Japan's Nikkei average <> advanced 0.3 percent, after
at one point hitting its highest since Oct. 8, while Australia
<> rose more than 1 percent and markets in Singapore
<FTSTI> and Shanghai <> posted more modest gains.
However, some other markets retreated. Hong Kong <>
shares were down 0.3 percent, dragged down in part by a 3.3
percent fall in shares of Industrial and Commercial Bank of
China <1398.HK> after Goldman Sachs was seen selling a stake in
the Chinese lender. []
Seoul shares <> gave up gains to dip 0.2 percent
following reports that North Korea was preparing another
missile launch after its nuclear test last week.
[]
RBA'S EASING BIAS
Recent data appear to show the global economy has hit
bottom, as shown by Monday's manufacturing reports and
Australia's trading data on Tuesday that hinted the country may
have dodged a recession last quarter.
But questions remain over the timing and strength of any
recovery. That caution is also being reflected by central banks
worldwide, which after sharply cutting interest rates are now
mostly on hold and eager to keep their options open.
The Reserve Bank of Australia kept interest rates on hold
as expected, but surprised investors by reiterating its
readiness to ease monetary policy if need be.
That was seen as an attempt to restrain the market from
pricing in rate hikes too soon, which could derail a recovery
before it gains speed. []
The Australian dollar <AUD=> fell slightly to $0.8077,
after holding near eight-month highs of $0.8100 before the
decision.
The U.S. dollar, which has been whipped recently by
investors' preference for higher-yielding assets and concerns
about rising U.S. debt levels, steadied against a basket of
major currencies <.DXY> at 79.302.
The U.S. currency had hit a new low for the year on Monday.
Japanese government bonds, however, took a hit, as
investors turned to higher-risk assets which offered the
prospect of stronger returns. The yield in the 10-year note
<JP10YTN=JBTC> rose at one point to as high as 1.515 percent,
matching peaks last seen in mid-November.
Yields also rose in Japan ahead of Tuesday's 10-year
auction <TENDER01>, while tracking a sell-off in U.S.
Treasuries on Monday that led the gap between two-year and
10-year Treasury notes to match the previous record high hit on
Friday of 275 basis points.
(Editing by Tomasz Janowski)
