* China stimulus boosts Asia stocks, metals, oil
* Yen down as risk appetite returns a bit
* Safe-haven govt bonds retreat, JGB futures dip
(Repeats to more subscribers)
By Eric Burroughs
HONG KONG, Nov 10 (Reuters) - Asian stocks and commodity
prices climbed on Monday after China unveiled a nearly $600
billion economic stimulus plan, one of many measures countries
are undertaking to limit the economic fallout from the
financial crisis.
Japanese government bonds and U.S. Treasuries retreated as
funds flowed back into riskier assets on hopes for stimulus
measures by other major economies, with U.S. President-elect
Barack Obama pushing for urgent passage of more fiscal spending
in the world's largest economy.
The yen fell as investors embraced the high-yielding
Australian dollar after China's announcement and as financial
officials from the Group of 20 economic powers, which include
major developing countries, ironed out ways to stimulate growth
at a weekend meeting. []
"The market is choosing to focus on all this talk of
stimulus from around the world," said Shane Oliver, head of
investment strategy at AMP Capital Investors in Sydney.
The damage inflicted by the worst financial crisis since
the Great Depression was highlighted late last week by data
showing the U.S. jobless rate hitting a 14-year high just as
General Motors <GM.N> and Ford Motor Co. <F.N> said they were
fast burning through cash for operations. []
Japan's Nikkei share average <> rose 5.5 percent in
early trade, getting a boost from the gains on Wall Street late
last week on some bargain hunting among investors.
The market shrugged off data earlier on Monday showing
Japan machinery orders matched the biggest quarterly drop on
record in the July-to-September period, focusing instead on the
hefty Chinese spending measures targeting infrastructure.
The Shanghai Composite <> index jumped 5.3 percent,
helping lift the MSCI index of Asia-Pacific stocks outside of
Japan <.MIAPJ0000PUS> 3.5 percent.
South Korea's KOSPI index <> pushed up 1.5 percent
after initially struggling to hold gains due to the drag of
Hyundai Motor <005380.KS>, which lost 4.4 percent.
But Taiwan's benchmark TAIEX <> fell, struggling even
after the country's central bank delivered a surprise interest
rate cut at the weekend, the fourth reduction in a little more
than a month to shield the export-dependent economy.
[]
STIMULAS PACKAGE
Economists at Goldman Sachs said in a note to clients that
Obama's sweeping election last week meant that another U.S.
stimulus package would top its initial estimate of $200 billion
and would involve more spending over a longer timeframe.
The dollar gained 0.9 percent to 99.10 yen <JPY=>, holding
off a 13-year low of 90.87 yen struck on trading platform EBS
last month during the height of the sell-off in stocks,
commodities and higher-yielding currencies.
Financial markets have gradually started to settle down
from the sharp October sell-off when many investors rushed to
raise cash, hedge funds confronted big redemptions and
portfolio managers grappled with the deteriorating economic
outlook.
The Australian dollar -- a bellwether of carry trades where
the low-yielding yen is used a cheap source of funds to buy
higher-yielding currencies -- was up 2.1 percent at $0.6888
<AUD=D4>.
Australia's S&P/ASX 200 <.ASJO> was up 2.4 percent, led by
shares of top miners BHP Billiton <BHP.AX> and Rio Tinto
<RIO.AX> as commodity prices soared on the China stimulus plan.
London-traded copper futures <MCU3> jumped nearly 7 percent
to $4,015, while zinc <MZN3> and lead <MPB3> were up 5 percent.
U.S. crude oil prices <CLc1> rose $2.86 a barrel to $63.90,
rebounding after sliding on Friday to a 1-1/2-year low below
$60.
Japanese government bond futures <2JGBv1> meanwhile shed
0.13 point to 137.27. But the benchmark 10-year JGB yield
<JP10YTN=JBTC> was flat at 1.510 percent.
"Expectations that the U.S. government could soon bring up
additional economic stimulus steps ... prompted investors to
trim their government debt holdings even after Friday's weak
U.S. employment report," said Hidenori Suezawa, chief
fixed-income strategist at Daiwa Securities SMBC in Tokyo.
Treasury futures <TYv1> lost 16/32 in price to 114-18/32 as
S&P 500 futures <SPc1> were up 17 points, or 1.9 percent, in
electronic trade, pointing to further gains on Wall Street
later in the day.
