* Asia stocks up 1 pct, electronics makers lead gains
* European share markets seen opening higher
* Short-covering lifts Nikkei; technicals point to
volatility
* Traders see chance of short squeeze boosting euro further
* Copper gains for seventh day running
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.
Financial bookmakers were expecting European shares to rise
for a sixth session in a row, with spreadbetters calling
London's FTSE 100 <>, Germany's DAX <> and France's
CAC-40 <> to open 0.5-0.9 percent higher.
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 to post its longest winning streak since at
least 1993, while crude oil extended its rally into a third
day. [] []
"Oil is basically moving with stock markets and the stock
markets are moving with optimism and pessimism over the euro,"
said Keichi Sano, general manager of research at SCM Securities
in Tokyo.
Tokyo's Nikkei <> rose 1.8 percent to close above
10,000 points for the first time in nearly a month, picking up
steam after finishing 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 3.9 percent and Kyocera <6971.T> up 2.5
percent. The Philadelphia semiconductor index <.SOXX> had
jumped 5.5 percent on Tuesday after Taiwan's big contract chip
makers forecast growing demand.
MSCI's index of Asian stocks outside Japan <.MIAPJ0000PUS>
rose 1 percent.
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 paused around $1.2315 <EUR=>, having risen to as
high as $1.2350, 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.
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.
"Short-covering and European banks' repatriation will keep
the euro buoyant for at least another week," said a currency
trader at a Japanese brokerage, adding that the euro remained
basically in a downtrend.
The bond auctions also helped the Australian <AUD=> and New
Zealand dollars, higher-yielding currencies that tend to gain
on heightened risk appetite.
"Markets are focusing more on equity markets, so
equity-sensitive currencies like the Aussie, Kiwi, Canadian
dollar and Swedish crown could be the main focus," said
Masafumi Yamamoto, chief FX strategist at Barclays in Japan.
Japanese government bonds dipped 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 0.07 point to
140.35, pulling back from a two-year high above 141.00 struck
the previous week. []
U.S. Treasuries were steady in Asia, having fallen on
Tuesday, with few players convinced the sharp bond rally of the
past two months, which saw the benchmark 10-year yield fall to
1-year low of 3.06 percent, has run its course.
"The biggest reason people do not expect Treasury yields to
jump is that the market continues to believe the Federal
Reserve won't hike rates for some time," said a portfolio
manager at an investment management firm.
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, with London prices rising more than
2 percent <MCU3>.
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 more than 2 percent, were
also helped by signs the Canberra government was planning
revisions to its proposed mining tax. []
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