* Nikkei surges after Wall Street's firm close
* China shares dip as Shanghai re-opens after week-long
break
* Dollar pauses, euro up on Greece bailout talk
* Oil surges to a 6-week peak on France strike, Iran
tensions
By Umesh Desai
HONG KONG, Feb 22 (Reuters) - Asian stocks rose on Monday
as investors looked past the Federal Reserve's discount rate
hike to signs of strength in the U.S. economy, while the euro
firmed on talk that a quick bailout is being sketched out for
debt-stricken Greece.
A pause in the dollar's rally spurred gold to its highest
level in a month, and oil rose to a six-week high on concerns
about a refinery workers' strike in France.
The MSCI index of Asian stocks traded outside Japan
<.MIAPJ0000PUS> rose 2.2 percent, helped by shares in the
materials and energy sectors as commodity prices pushed higher.
Japan's Nikkei stock average gained over 3 percent on the
back of exporters whose shares were boosted by a weak yen,
while recall-hit Toyota Motor Corp <7203.T> rebounded 3
percent.
"Investors on Friday were worried about the impact of the
U.S. discount rate hike on Wall Street, but U.S. markets in the
end were quite settled," said Nagayuki Yamagishi, a strategist
at Mitsubishi UFJ Securities.
The Fed said late on Thursday that it would raise the
interest rate it charges banks for emergency loans to 0.75
percent from 0.5 percent, taking a step towards normalising
emergency policy used to fight the worst financial crisis since
the Great Depression.
Asian stock markets fell heavily on Friday in the first
global reaction to the move, but after initial nervousness U.S.
investors preferred to view it as a sign that the economy was
healing, helping stocks on Wall Street close out their best
week of the year. []
Asian share markets were also buoyed by a steady start in
Chinese markets as they re-opened after a week-long holiday and
had their first chance to react to a surprise central bank
tightening move on Feb 12.
Markets had feared a heavy selloff in Shanghai after the
People's Bank of China raised banks' reserve requirements for
the second time this year, but China's key stock index <>
was little changed by late morning on Monday.
Hong Kong's benchmark Hang Seng Index <> rose 2.4
percent, lifted by oil producers PetroChina <0857.HK> and CNOOC
<0883.HK> on firmer oil prices and signs of stability in
Chinese markets.
South Korean shares snapped a two-day losing streak with
the benchmark index <> up more than 2 percent, boosted by
a rebound in the banking sector and by the strength in shipping
stocks amid hopes of an industry turnaround.
"Asian markets at these levels are quite cheap and there is
reasonable good growth in the region over the next 1-2 years so
we think that these levels are buying levels," said Khiem Do,
head of the Asia multi-asset group at Baring Asset Management,
which oversees $50 billion.
"We still like North Asia -- Taiwan, South Korea and
China."
EURO FIRMS, DOLLAR DOZES
The euro <EUR=> jumped to as high as $1.3641 from $1.3607
late on Friday, before selling by some investment banks saw it
give up most of those gains, traders said.
German weekly Der Spiegel reported on Saturday that
Germany's finance ministry had prepared plans in which
countries using the single currency would provide aid worth
between 20 billion and 25 billion euros for debt-laden Greece.
The ministry refused to comment on the report.
[]
The dollar index <.DXY> eased 0.3 percent to 80.39, after
rallying to an eight-month high of 81.342 on Friday.
Oil jumped 58 cents to above $80 a barrel, adding to its
recent gains amid concerns about an extended refinery strike in
France and escalating tensions over Iran's nuclear program.
(Editing by Kim Coghill)
