* Asian stocks push towards 6-month highs before retreat
* Buoyant mood, especially financials, after Wall St rally
* But Japan banks hit by SMFG loss report as worry revives
* Yen weighed down by risk demand
(Repeats to additional subscribers with no change to text)
By Elaine Lies
TOKYO, April 10 (Reuters) - Asian shares rose on Friday,
with South Korean stocks hitting a 6-month high after the
country averted recession in the first quarter, as a Wall
Street rally boosted risk demand around the region and dented
the yen.
Many financial centres in the region were closed for a long
weekend, making investors nervous that gains made now may not
be sustained next week when many major U.S. companies report
quarterly earnings.
The Nikkei hit a three-month closing high for the second
day in a row, though off the day's peak reached above the
psychologically key 9,000 level, as banks tumbled after
Sumitomo Mitsui Financial Group <8316.T> warned of a net loss
for the financial year just ended, reviving fears for other
megabanks.
Nikkei <> edged up 0.5 percent to 8,964.11.
U.S. shares rebounded after Wells Fargo <WFC.N> said it
expected to post a record quarterly profit of $3 billion,
topping analyst expectations that sent the sector -- key to
market sentiment -- sharply higher, with the S&P financial
index <.GSPF> soaring 15.51 percent.[]
In Taiwan, this dovetailed with Cathay Financial <2882.TW>
rallying after it reversed a year-ago loss to report
market-beating first quarter profits, helping shares hit a
6-month high.
Taiwan's main TAIEX share index <> gained 2 percent to
5,781.96, while the Korea Composite Stock Price Index <>
(KOSPI) rose 1.5 percent to 1,336.04.
Seoul shares gained additional upward impetus with a
positive growth estimate for the first quarter from South
Korea's central bank.
"The market was helped by Wells Fargo's stronger than
expected first quarter results estimate, fueling hopes of
stabilisation in U.S. financial markets," said Won Jong-hyuck,
a market analyst at SK Securities in Seoul.
Global investors have been keenly awaiting U.S. financial
results, which move into high gear next week when Goldman
Sachs, JP Morgan Chase and Citigroup are all set to report.
"If U.S. banks show some signs of improvements and
stabilisation, the index could make a more meaningful rebound.
Better numbers from banks will point to stronger economies in
the second half," said Lee Sun-yeob, a market analyst at
Goodmorning Shinhan Securities.
But there was little joy for financials in Japan a day
after its third-largest bank, Sumitomo Mitsui Financial Group
<8316.T>, said it faces a net loss of $3.9 billion for the
financial year just ended and would raise as much as $8 billion
through the sale of shares. []
This revived worries for its larger rivals, seen as even
more sensitive to declines in Japanese share prices, with No. 2
bank Mizuho Financial Group <8411.T> tumbling 9.6 percent.
EURO FALLS
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 0.5 percent, back near a six-month peak
hit on Monday.
The euro fell to its lowest in almost a month against the
dollar, dented by holiday trade and a view the European Central
Bank may be edging closer to unconventional easing.
ECB President Jean-Claude Trichet said on Thursday the ECB
still had some leeway to cut its main interest rate from its
record low of 1.25 percent.
He repeated it would lay out plans for possible
unconventional monetary policy measures at its next meeting in
May. He did not give details, but another ECB official said
buying debt could ease credit availability. []
The dollar initially rose against the yen but fell back in
later trade, down 0.1 percent at 100.35 yen <JPY=> by 0600 GMT.
Japanese government bonds edged up as investor demand for
debt revived a little with the market beginning to process news
of an upcoming increase in supply.
The benchmark 10-year JGB yield fell 2.5 basis points to
1.450 percent <JP10YTN=JBTC>.
(Editing by Kazunori Takada)
(Additional reporting by Jungyoun Park in Seoul)
