RPT-GLOBAL MARKETS-United G20 inspires Asia stocks

                                
 * MSCI Asia-Pacific ex Japan stocks index hits 3-mth high
                                
 * Perception of policy coordination important, analyst says
                                
 * Caution setting in before March U.S. payrolls figure
  (Repeats to additional subscribers with no change to text)
                                
 By Kevin Plumberg
                                
 HONG KONG, April 3 (Reuters) - G20 leaders convinced
investors they were united enough to keep a risk-taking rally
alive on Friday, lifting Asian stocks a fourth day, but the
U.S. dollar fought back from early losses ahead of the latest
U.S. payrolls number due later in the day.
                                
 The perception of global policy coordination added to a
growing investor optimism based on sprouts of economic recovery
around the world in the last month. For example, a gauge of
Chinese manufacturing in March released on Thursday reflected
expansion for the first time since September 2008.
[ID:nPEK365040]
                                
 Major European stocks were expected to open slightly lower,
according to financial bookmakers, as caution reigned ahead of
the latest U.S. payrolls figure due later on Friday.
                                
 Still, views on the medium-term outlook improved markedly
after the Group of 20 pledged $1.1 trillion in additional funds
for the International Monetary Fund and to support global trade
finance.
                                
 "We expected a lot of discord between the U.S. and UK and
France and Germany with China poking its nose in as well but
they seem to come out of the event as one connected group,
seemingly on the same page," said Dwyfor Evans, currency
strategist with State Street Global Markets in Hong Kong.
                                
 "It implies that there is policy coordination and not
policy discord," he said.
                                
 Institutional investors have been selling U.S. dollars and
yen -- which have been associated with safety and liquidity --
and buying emerging market and commodity-related currencies for
the last several weeks, Evans said, citing State Street's
capital flows data.
                                
 Global stock markets have been rising at a torrid pace for
nearly a month now, particularly in Asia, and some dealers were
talking about the need to pause and lock in some of the gains.
Indeed, U.S. stock market futures were already pointing to a
slightly lower open later in the day. <SPc1>
                                
 The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> edged up 0.7 percent and stood more than 20
percent higher since late February.
                                
 Japan's Nikkei share average <.N225> was up 0.3 percent,
after being higher for most of the session. Automaker stocks
were big gainers for a third day, with shares of Toyota Motor
Corp <7203.T> up 7 percent following more evidence overnight
the global car market collapse could be nearing an end.
                                
 Car sales in Germany, Europe's largest market, surged 40
percent in March, mainly due to government incentives to
encourage drivers to trade old cars for more fuel-efficient
models. [ID:nL2696446]
                                
 Hong Kong's Hang Seng index <.HSI> was up slightly near a
three-month high, after a 7 percent surge on Thursday. Trading
volume climbed as the month-long rally sucked in more market
participants -- a sign the current rally may have legs.
                                
 Rebounding commodity prices fed into a 4 percent pop in
shares of Australian miners BHP Billiton <BHP.AX> and Rio Tinto
<RIO.AX>. The benchmark S&P/ASK 200 index <.AXJO> climbed 1.5
percent.
                                
 THE GRAND 20
                                
 The yen took an early beating against higher yielding
currencies such as the Australian and New Zealand dollars but
then fought back some, ahead of the March U.S. employment data.
                                
 Economists were expecting payrolls shrank 650,000 in March,
which would bring to 3.6 million the jobs lost in the last six
months.
                                
 The euro slipped 0.2 percent against the yen at 133.98 yen
<EURJPY=> after a choppy morning. The dollar was little changed
at 99.50 yen <JPY=> after earlier poking above the
psychologically important 100 yen level for the first time
since early November 2008.
                                
 Debate was ensuing among market participants about exactly
where the money to fund the G20's goals was going to come from
and how financial regulation would take shape, but most
analysts agreed that the policy response was more than they had
expected.
                                
 Standard Charted strategists labelled their morning note
"The Grand 20," saying emerging market and high-yielding
currencies will be supported because of actions to beef up the
IMF.
                                
 However, "the initial market euphoria may yet prove to be
exaggerated given that the weak economic outlook will persist
for some time - today's U.S. payrolls numbers and U.S.
corporate earnings next week could provide a nasty reminder,"
they said.
                                
 The benchmark 10-year Japanese government bond yield
<JP10YT=JBTC> rose to a 3-1/2-month high on Friday, as the
Nikkei advanced.
                                
 JGB futures <2JGBv1> also touched their lowest in nearly
five months. [ID:nT182013]
                                
 Globally, emerging market bond returns rose 0.78 percent on
Thursday <11EMJ>, according to JPMorgan's EMBI-plus performance
index. The index has gained 4 percent since the end of
February.