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(Updates prices, adds European outlook)
By Louise Heavens
SINGAPORE, April 7 (Reuters) - Asian shares rose on Monday,
with resources companies benefiting from stronger metals and
oil prices, while the dollar rose, shrugging off
worse-than-expected U.S. job losses.
European stock markets were set to follow suit, with
financial bookmakers in London calling Britain's FTSE 100
<>, Germany's DAX <> and France's CAC-40 <> up
by around 0.3 percent.
"Higher crude and raw materials prices push up
resource-related shares, and they could further improve their
valuations if investors start to believe those factors will
benefit their earnings," said Kazuhiro Takahashi, general
manager of the equity marketing department at Daiwa Securities
SMBC in Japan.
"Still, the market will likely stay calm for the coming
week or two as investors want to see U.S. corporate earnings
results to get clues about the health of the economy and
whether the financial turbulence will continue."
In Australia BHP Billiton <BHP.AX>, the world's top miner
and Australia's top oil and gasproducer, Woodside Petroleum Ltd
<WPL.AX>, and Newcrest Mining <NCM.AX> all rose, while in Japan
oil field producer Inpex Holdings <1605.T> gained.
Tokyo's Nikkei <> ended up 1.3 percent, while stocks
elsewhere in Asia, as measured by MSCI's index <.MIAPJ0000PUS>
were up 0.7 percent by 0608 GMT. Asia ex-Japan stocks are still
down 10 percent this year.
Seoul's KOSPI <> index rose 0.4 percent, Taipei's
TAIEX <> gained 1.6 percent, and Hong Kong's Hang Seng
<> rose 1.1 percent. Sydney's S&P/ASX 200 index <>
ended flat as losses in the bank sector balanced gains in
resources.
BANKS WEAK
Concerns about the impact of the credit crisis on the
financial system lingered, driving banking shares lower.
In Australia, ANZ Banking Group <ANZ.AX> fell more than 6
percent after it said it expected total bad debt provision in
the first-half of fiscal 2008 to be about A$975 million ($894
million).
"We've been saying that the banks are going to find it
tough because of the U.S. issue and inter-connected problems
with subprime," said Lucinda Chan, division director at
Macquarie Equities. "Now that they have to physically announce
it, it makes itreally bad."
In South Korea Kookmin Bank <060000.KS> and Woori Finance
Holdings <053000.KS> both fell around 2 percent after a local
newspaper report pointed to South Korean losses related to the
global credit crisis.
U.S. JOBS FALL
Surprisingly weak U.S. jobs data added to evidence that the
credit crisis may have tipped the U.S. economy into recession
[]. U.S. Treasuries rose on the news on Friday but
gave up some of their gains on Monday.
The dollar initially fell but recouped losses, supported by
dollar buying by Japanese importers and talk that Japanese
investors were selling the yen against higher-yielding
currencies.
The weak reading was not a total shock and further declines
in the dollar may be limited in the near term, said a senior
trader for a Japanese trading house.
"It is not surprising that the numbers were bad," the
trader said, adding that given some surprising weakness in
recent U.S. employment data, investors had been prepared for
another soft reading.
The dollar had risen 1 yen from the day's lows at 102.38
yen <JPY=>. The euro rose 160.65 yen <EURJPY=> and was trading
at $1.5660 against the dollar <EUR=>.
The worse-than-expected jobs data bolstered market
expectations for more aggressive rate cuts by the Federal
Reserve.
Oil prices <CLc1> extended Friday's 2 percent rise, adding
33 cents to $106.56. Copper futures touchedthree-week highs in
Shanghai, with the June copper contract <SCFM8>, the most
active on theShanghai Futures Exchange, up 1.4 percent.
Gold extended gains <XAU=>, changing hands at
$914.70/915.50 an ounce. Silver and platinum also rose.
(Editing by Lincoln Feast)
