* China stimulus boosts Asia stocks, metals, oil
* Nikkei jumps 5 pct, MSCI Asia ex-Japan up 2.6 pct
* Yen down as risk appetite returns a bit
* Safe-haven govt bonds retreat, JGBs and Treasuries dip
(Updates prices, adds comments)
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 steps countries are
taking 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 positive tone seen in Asian equity markets was expected
to spill over into Europe, with European shares set to rise 3
percent or more, according to financial bookmakers.
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. []
Glenn Maguire, Asia chief economist at Societe Generale,
said interest rate cuts, bigger government spending globally
and a likely recovery in corporate investment next year should
sow the seeds for an economic rebound.
"Economic activity can only accelerate. Beware of the doom
merchants," Maguire said.
The damage inflicted by the worst financial crisis since
the Great Depression was highlighted by data on Friday showing
the U.S. jobless rate hitting a 14-year high and Japanese data
on Monday showing machinery orders suffered the biggest
quarterly fall in a decade. []
Japan's Nikkei share average <> rose 5.8 percent as
market players covered short positions and as hopes for a
pick-up in demand from China boosted shares of machinery makers
such as Komatsu Ltd <6301.T>.
The Shanghai Composite <> index jumped 5.5 percent,
helping lift the MSCI index of Asia-Pacific stocks outside of
Japan <.MIAPJ0000PUS> 2.5 percent.
Equity strategists at Citigroup said in a report that this
year's outflows from Asia ex-Japan shares already total $20.2
billion, or 37 percent of the money that flowed in between 2003
to 2007 -- a similar percentage to the amount withdrawn during
the 1997-98 Asia crisis.
"If current outflows are no worse than the one in 1997/98,
we should see redemptions close to an end," they said.
South Korea's KOSPI index <> rose 1.6 percent after
initially struggling to hold gains as Hyundai Motor <005380.KS>
fell on worries about the impact of any U.S. support for its
hard-hit automakers.
Taiwan's benchmark TAIEX <> was flat, 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.
[]
STIMULUS ABOUNDS
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.
The dollar gained 0.7 percent to 98.94 yen <JPY=>, holding
off a 13-year low near 91 yen stuck last month during the
height of the turmoil in global markets.
Financial markets have gradually started to settle down
from October's historic 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 as a cheap source of funds to buy
higher-yielding currencies, rose 2.1 percent to $0.6860
<AUD=D4>.
Australia's S&P/ASX 200 <.ASJO> was up 1.4 percent, led by
shares of top miners BHP Billiton <BHP.AX> and Rio Tinto
<RIO.AX>, even as the country's central bank cut its growth
forecast. []
London-traded copper futures <MCU3> jumped nearly 8 percent
to $4,040. U.S. crude oil prices <CLc1> rose $2.39 a barrel to
$63.43, rebounding from a 1-1/2-year low hit on Friday below
$60.
Japanese government bonds dipped, with the benchmark
10-year JGB yield <JP10YTN=JBTC> up 2 basis points to 1.530
percent.
U.S. Treasuries fell on the gains in stocks and as dealers
prepared to absorb a whopping $55 billion in new supply during
the regular quarterly refunding auctions.
Treasury futures <TYv1> lost 16/32 in price to 114-18/32 as
S&P 500 futures <SPc1> were up 15 points, or 1.6 percent, in
electronic trade, pointing to further gains on Wall Street
later in the day.
(Additional reporting by Elaine Lies and Rika Otsuka in Tokyo
and Mette Fraende in Sydney; Editing by Dhara Ranasinghe)
