* Strong China data boosts Asia stocks, global recovery
hopes
* Asia stocks up 0.3 percent in choppy trade
* Euro zone debt problems still linger, limiting gains
* Weakness on Wall St also weighs on investor sentiment
By Sugita Katyal
SINGAPORE, June 10 (Reuters) - Asian stocks rose on
Thursday on better-than-expected Chinese exports and assurances
from Federal Reserve Chairman Ben Bernanke that the U.S.
economic recovery was on solid footing.
The euro steadied but continued to look fragile near
four-year lows against the dollar, with traders awaiting a
European Central Bank meeting later in the day to see if it
plans any fresh steps to helped debt-stricken euro zone
countries. []
Asian markets also drew support from positive comments by
Bernanke, who told the U.S. House of Representatives Budget
Committee that the U.S economic recovery was on track even if
jobs would return only slowly.
Bernanke said that while a double-dip recession "can never
be entirely ruled out," he expected the world's largest economy
to continue growing. []
Global stock markets and the euro were given a boost on
Wednesday when sources told Reuters that Chinese exports had
grown about 50 percent in May from a year earlier, blowing past
expectations and offsetting concerns that problems in Europe
could derail the global recovery.
But U.S. stock markets surrendered early gains as a host of
other negative factors overwhelmed the impact of the China
data, highlighting the skittishness of investors, who have been
quickly selling into any market rallies. []
That nervousness and lingering worries about Europe limited
further gains in Asia on Thursday, even as China's official
data confirmed faster growth, with exports up 48.5 percent in
May from a year earlier and imports up 48.3 percent.
[]
Japan's Nikkei share index <> rose 0.3 percent, with
the MSCI ex-Japan stock index <.MIAPJ0000PUS> up 0.14 percent.
But markets in Hong Kong <> and Shanghai <> saw modest
losses as traders took profits on Wednesday's China-fuelled
rally.
"The global economy doesn't appear to be in such a bad
shape, except for problems with Europe's finances," said
Kenichi Hirano, operating officer at Tachibana Securities.
"Foreign investors who have been selling Japanese stocks
want to sell because they're worried about liquidity, not
because they have reviewed their stance on Japan. They'll need
to see the European problems calm down."
The Nikkei's relative strength index remained around 34,
with levels of 30 and below signalling a market has been
oversold.
Australian shares also rose, adding 0.8 percent, with
resources stocks leading the way on higher metals prices,
strong Chinese output and trade data, and better-than-expected
Australian job figures. Australia is a major supplier of iron
ore and other raw materials to China.
EURO STILL FRAIL
The euro was little changed from late U.S. trade at $1.1965
<EUR=>, after the robust Chinese export news and options-linked
demand briefly pushed it above $1.20 overnight.
The ECB is expected to keep interest rates at a record low
when it meets later on Thursday. Analysts are watching to see
what it can do to shore up sentiment and euro zone economic
growth, which is likely to suffer as heavily indebted
countries
slash their spending to reduce strains on their finances and
give them access to emergency aid. []
Against the yen, the euro edged down 0.1 percent to 109.21
yen <EURJPY=R> and the dollar was steady at 91.23 yen <JPY=>.
The Australian dollar was up 0.2 percent against the dollar
at $0.8289 <AUD=D4> with investors awaiting Australian
employment data, in case the data beats expectations as it did
last month.
The New Zealand dollar was up 0.1 percent at $0.6722
<NZD=D4> following a 1 percent rally made after the country's
central bank hiked interest rates from a record low, its first
move since the global crisis.[]
U.S. crude oil futures <CLc1> gave up ground after climbing
3 percent a day earlier on the Chinese export news and a big
drawdown in U.S. oil inventories.
Crude for July delivery fell 27 cents to $74.11 a barrel
after Wall Street closed lower, hurt by falls in BP <BP.L> and
other energy shares as a U.S. probe into a massive oil spill in
the Gulf of Mexico intensified.
(Editing by Kim Coghill)
