* Asian shares rise, but S&P futures ease
* Dollar slips, drop in U.S. yields weighs
* Oil extends gains above $70 a barrel
By Charlotte Cooper
TOKYO, June 26 (Reuters) - Asian share markets rose on
Friday as higher oil and metals prices boosted resource stocks,
while the dollar fell on lower U.S. yields and as investors
gingerly shifted some funds back into riskier assets.
In Europe, shares were set to rise with resource stocks
also poised to gain, while Swiss lender UBS AG <UBSN.VX> said
it planned to raise about 3.8 billion Swiss francs ($3.48
billion) by selling shares and expected to post a
second-quarter net loss. []
U.S. crude oil futures pushed on above $70 a barrel on
renewed rebel attacks against oil facilities in Nigeria and
worries that a glitch at the largest U.S. oil refinery may
tighten gasoline stockpiles. []
The MSCI index of Asian stocks excluding Japan
<.MIAPJ0000PUS> climbed 1.4 percent to 322.60, although it
remains below the eight-month highs scaled at the start of
June, while Japan's Nikkei <> ended up 0.8 percent.
The Nikkei has risen 11 percent since the start of the year
but is still down 29 percent from a year ago, while the MSCI
ex-Japan is up 30 percent so far this year but down 27 percent
on a year ago.
Australian shares <> jumped 1.2 percent, lifted by oil
producers, banks and Qantas Airways Ltd <QAN.AX> after it cut
and deferred orders of Boeing Co <BA.N> Dreamliner aircraft in
a cost-saving move.
"The tone of the market is reasonable, people are prepared
to buy on the dips ... but it is also hard to see the market
roaring ahead," said David Spry, research manager at FW Holst
in Melbourne.
Japan's Nippon Oil Corp <5001.T> rose 3 percent after a
newspaper reported that it and other Japanese companies were in
the final stage of talks with Iraq to win the development
contract for Iraq's huge Nassiriya oilfield. []
Suzuki Motor <7269.T> climbed 5.5 percent after a source
familiar with the matter said Volkswagen <VOWG.DE> was
exploring a potential cooperation deal with Suzuki as a way to
boost its expertise in the area of ultra-small cars.
[]
A climb on Wall Street supported Asian shares, although S&P
futures eased on Friday indicating a soft start later.
U.S. stocks rose after encouraging news from retailer Bed
Bath & Beyond Inc <BBBY.O> and after Federal Reserve Chairman
Ben Bernanke withstood grilling in Congress on whether he had
coerced Bank of America Chief Executive Kenneth Lewis to go
forward with plans to buy a flagging Merrill Lynch.
[]
The Dow Jones industrial average <> closed up 2.1
percent, with similar gains on the Standard & Poor's 500 Index
<.SPX> and the Nasdaq Composite Index <>.
MIXED FEELINGS
Copper prices in Shanghai <SCFc3> rose, chasing a two-week
high in London prices set the previous day, while spot gold
held near $942 per ounce <XAU=> as firmer oil supported
bullion's appeal as potential hedge against oil-led inflation.
U.S. crude futures <CLc1> were trading at $70.80 a barrel,
after jumping 2.3 percent the previous session.
Share markets have been in retreat in the past two weeks as
investors paused to work out if a rally in place since March
has run out of steam, as economies around the world struggle.
Boston-based fund tracker EPFR Global said global equity
funds showed outflows of $4.12 billion in the week to June 24,
while $25.9 billion went into money market mutual funds.
Japanese equities saw the sixth straight week of outflows.
[]
And data continues to show a mixed picture.
In Japan, consumer price data showed a record drop on the
year in May, with falling demand increasingly blamed as the
country's second bout of deflation in less than two years
deepens. [] []
New Zealand's economy shrank for the fifth quarter in the
first three months of this year, marking its longest
contraction on record. []
Debt markets have benefited from economic uncertainty and
the yield on the benchmark 10-year Treasury note <US10YT=RR>,
which moves opposite to price, touched its lowest level in four
weeks on Thursday as a jump in jobless claims aggravated
worries.
Treasuries fell slightly in Asia, pushing the yield back up
to 3.567 percent as investors took profits.
But markets are more confident than they were a few months
ago and for shares, the U.S. Federal Reserve's statement on
Wednesday reinforced expectations that interest rates will
remain at a record low for a while.
In one measure of how investor sentiment has improved, the
CBOE Volatility Index <.VIX>, a favourite measure of investor
anxiety, on Thursday closed at its lowest level since just
before Lehman Brothers filed for bankruptcy protection last
September.
Investor confidence was also helped on Thursday by the Fed
and its counterparts around the world extending currency swap
lines until February 2010 so they have U.S. dollars to lend in
their markets. []
The dollar index <.DXY>, a gauge of its performance against
six other major currencies, fell 0.4 percent and the U.S.
currency softened to 95.94 yen <JPY=>, while the euro rose 0.4
percent to $1.4040 <EUR=>. The dollar has risen about 6 percent
against the yen this year but only 1.2 percent on the index.
