* Asia stocks up for 7th day, but Nikkei down
* Major central bank rate cuts eyed this week
* Some signs investors shifting money to Asia (Repeats to
additional subscribers with no changes to text)
By Eric Burroughs
HONG KONG, Dec 1 (Reuters) - Asian stocks edged up for a
seventh consecutive session on Monday, building on last week's
strong gains, as investors took heart from aggressive central
bank efforts to revive economic growth even as incoming data
were grim.
Higher-yielding currencies such as the Australian dollar
fell before the expected rate cuts this week, while oil prices
shed more than a $1 after cartel OPEC delayed a third supply
cut to later in the month.
Major central banks from Australia to Europe are expected
to slash interest rates further this week in a string of policy
meetings, marking the latest chapter in official efforts to
limit the economic fallout from the 15-month credit crisis.
Stocks around the world recovered last week after the U.S.
government rescued banking giant Citigroup <C.N>, the Federal
Reserve said it would buy up to $800 billion debt to help
households access credit and China slashed rates.
Portfolio managers are grappling with whether the sell-off
across equity markets has adequately anticipated the drop in
corporate profits from the sharp economic downturn, or whether
a further slide is in the offing.
"The market is still tentative because of potential profit
downgrades and bad economic news will probably outweigh for a
while," said Hans Kunnen, head of investment market research at
Colonial First State Investments in Sydney.
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> inched up 0.3 percent, gaining 18 percent from
a five-year low hit last month. But for the year, the index is
still down 57 percent.
In a positive sign for stocks, investors have started
shifting funds into Asian equities. Data from EPFR Global
showed Asian ex-Japan stocks posted a second straight week of
fund inflows in the week ending last Wednesday.
Japan's Nikkei average <> however fell 1.4 percent as
some investors booked profits. Australia's S&P/ASX 200 <>
dropped 1 percent.
Trading volume was subdued as U.S. investors gradually
returned to their desks following the Thanksgiving holiday.
Among the bleak economic news on Monday, South Korean
exports plunged 18.3 percent in November from a year earlier,
the sharpest fall in seven years. []
CHINESE INDUSTRY SLUMPS
A gauge of manufacturing activity in China showed the
sharpest monthly contraction in its 4-1/2-year history on
plunging new orders for export goods. []
Market players are looking ahead to a batch of closely
watched figures in the United States this week, with the
Institute for Supply Management's factory index expected to
show activity shrinking at the fastest pace since the early
1980s.
Improved fund flows into equities may help buoy beleaguered
Asian currencies. The South Korean won edged up slightly to
1,463.9 <KRW=> despite the downbeat trade figures.
The yen edged up as investors trimmed higher-yielding
currencies. The dollar dipped 0.2 percent to 95.30 yen <JPY=>,
while the Australian dollar shed 1 percent to $0.6484 <AUD=D4>
and 0.9 percent to 61.77 yen <AUDJPY=R>.
Safe-haven government bonds slipped after gains in most
stock indexes.
The 10-year Japanese government bond yield <JP0YTN=JBTC>
rose half a basis point to 1.395 percent, while short-term
yields fell on expectations the Bank of Japan would undertake
more measures to help the battered money market.
(Editing by Anshuman Daga)
