* Asian stocks up 1 pct, electronics makers lead gains
* Short-covering lifts Nikkei; technicals point to
volatility
* Traders see chance of short squeeze boosting euro further
* Copper gains for seventh day running
(Repeats to more subscribers)
By Alex Richardson
SINGAPORE, June 16 (Reuters) - Asian shares rose on
Wednesday, led by electronics makers and resource stocks, after
successful European debt auctions boosted hopes for global
growth and lifted commodity prices.
The euro steadied near its highest in 2 weeks, and easing
fears about Europe's debt crisis also fuelled gains for
higher-yielding currencies such as the Australian dollar.
Industrial raw materials also gained, with copper up for a
seventh day running, while crude oil extended its rally into a
third day. []
Tokyo's Nikkei <> rose 1.6 percent to top 10,000
points for the first time in a month, picking up steam after
closing above its 25-day moving average on Tuesday. []
"The speculative sell-off in response to negative news,
which we had seen up until now, might have come to a halt, and
short-covering is now picking up momentum," said Masaru
Hamasaki, a senior strategist at Toyota Asset Management.
Electronics makers were the biggest contributors, with
Canon <7751.T> up 3.2 percent and Kyocera <6971.T> up 2.2
percent. The Philadelphia semiconductor index <.SOXX> had
jumped 5.5 percent on Tuesday after Taiwan's big contract chip
makers forecast growing demand.
U.S. stocks gained more than 2 percent on Tuesday, with the
S&P 500 <SPX> rising above its 200-day moving average for the
first time in a month, as investors took heart from successful
debt auctions in some of the euro zone's weaker members. []
"From a technical perspective, the U.S. market retested its
200-day moving average and managed to go through it, so the
next few days will be very interesting," said Matt Riordan,
portfolio manager at Paradice Investment Management in Sydney.
"I think it will remain volatile."
EURO RELIEF
The euro was up at $1.2315 <EUR=>, having risen to as high
as $1.2349, the strongest level since June 1, in the previous
session after debt auctions in Spain, Ireland and Belgium drew
solid demand. []
The single currency has been battered for months as
investors took fright at high euro zone sovereign debt levels
and low growth prospects in several countries in the bloc.
The bond auctions also helped the Australian and New
Zealand dollars, higher-yielding currencies that tend to gain
on heightened risk appetite.
Some traders said a short squeeze on the euro -- with
investors who had been betting on falls scrambling to cover
their positions -- could push the currency higher.
"The price action suggests that both the euro and the
Aussie's rally in the past few sessions have a bit to run,"
said John Horner, currency analyst at Deutsche Bank in
Australia.
Japanese government bonds dipped, following a fall in U.S.
Treasuries as stock market gains dampened demand for safe-haven
government debt, but losses were limited as traders cautioned
the European crisis still had some months to run.
"The significant rise in stock prices has been taken in
stride as it is difficult for investors to become optimistic
while worries over the euro zone's debt situation continue to
simmer," said Makoto Noji, a senior market analyst at Mizuho
Securities.
September 10-year JGB futures <2JGBv1> fell 0.13 point to
140.29, pulling back from a two-year high above 141.00 struck
the previous week. []
U.S. crude futures <CLc1> edged up to near $77 a barrel, a
day after spiking more than 2 percent on growing investor
confidence in a global economic recovery.
Hopes of improving demand for resources also boosted copper
for a seventh straight day <HGN0>.
That, in turn, lifted shares in the resources sector, while
Australian mining heavyweights Rio Tinto <RIO.AX> and BHP
Billiton <BHP.AX>, both of which rose nearly 2 percent, were
also helped by signs the Canberra government was planning
revisions to its proposed mining tax. []
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