* Compromise on U.S. plan brings little cheer to Asia
* Gold hangs near 6-1/2-month high, yen climbs
* Government bonds remain firm, JGBs rally
(Recasts, updates prices, adds European outlook)
By Kevin Plumberg
HONG KONG, Feb 12 (Reuters) - Asian stock markets fell on
Thursday while the yen rose, with safety the rule as a
compromise over a $789 billion U.S. stimulus bill only left
investors wondering if the money will reach the economy fast
enough.
Major European stock markets were expected to open as much
as 0.7 percent lower, according to financial spreadbetters,
ahead of results from Total <TOTF.PA> and Rio Tinto <RIO.L>
Crude's steady decline and gold's march to a 6-1/2-month
high overnight both reflected expectations that a recovery from
such a massive shock to the global economy was not around the
corner.
Regional stocks in the energy and materials sectors were
the biggest losers on the day, while financials were weak for a
second day running, continuing to be one of the worst
performing market segments this year, on disappointment that a
U.S. plan to fix the banking industry lacked specifics.
"The bank plan really just seemed as if it was putting
things off rather than dealing with them, and now markets are
waiting for the economic stimulus plan to be enacted, so it's
hard to bid the market higher," said Yutaka Miura, chief
technical analyst at Shinko Securities in Tokyo.
Japanese stocks fell early and never looked back, with the
Nikkei share average <> tumbling 3 percent as traders
returned from a public holiday. Exporters like Canon <7751.T>
and Toyota <7203.T> were hurt by strength in the yen, which
underlined a continued retreat to safety in global markets.
The economic situation in Japan deteriorated by the day. A
report on Thursday showed the first fall in wholesale prices in
five years, an indication the world's second-largest economy
may be entering a period of deflation. []
Hong Kong's Hang Seng index <> slid 2.06 percent, with
shares of Chinese lenders like Industrial & Commercial Bank of
China <1398.HK> among the biggest drags.
The MSCI index of Asia Pacific stocks excluding Japan
<.MIAPJ0000PUS> fell for a third day, with a positive
contribution from Australia getting wiped out by losses in
every other market.
Australia's benchmark S&P/ASX 200 <> rose 1.1 percent,
helped after data showed a surprise rise in employment figures
for January. Optimism about the economy, struggling to evade a
recession, could be short-lived.
After the stock market closed, the Australian dollar fell
on news the country's parliament rejected a $28 billion
stimulus plan, delaying the timing of cash handouts to millions
of workers and families. []
The yen and gold have so far been the biggest beneficiaries
of the deflated hopes of investors who had wanted a much
clearer plan this week from the U.S. Treasury on how to
segregate and price highly illiquid assets on the balance
sheets of banks.
GOLD STEADY
Spot gold <XAU=> held steady at $938 an ounce after surging
to the highest since July 2008, at $953.30 overnight.
The precious metal has gained precisely because it has
limited industrial use in a global economy that has slowed
rapidly, and it has also remained a popular hedge against
future inflation, as central banks try to flood the financial
system with cash.
Gold is up 6.9 percent year-to-date compared with a 5.6
percent rise in the ICE futures U.S. dollar index <.DXY> and a
7.9 percent decline in the MSCI all-countries world equities
index <.MIWD00000PUS>.
The yen rose against major currencies as investors avoided
risk as Japanese stock prices fell. The U.S. dollar fell 0.4
percent to 90 yen <JPY=>, while the euro was down 0.3 percent
to 116.30 yen <EURJPY=>.
The Australian dollar slipped 0.2 percent on the day to
US$0.6540 <AUD=> after trading positive for the most of the
day.
"Without details on the U.S. bank bailout plan, currency
market players found it difficult to judge how effective it
would be. So they are watching how stockmarkets are accessing
financial plans," said Kwang-ja Kim, deputy general manager at
Shinsei Bank in Tokyo.
Japanese government bonds played catch up after a holiday
and an overnight rise in U.S. Treasuries. The 10-year bond
future <2JGBv1> jumped 0.88 point to 139.30, while in the cash
market the 10-year yield slipped 4 basis points to 1.26 percent
<JP10YTN=JBTC>.
The benchmark yield on the 10-year U.S. Treasury note
<US10YT=RR> was stable at 2.78 percent.
U.S. crude for March delivery <CLc1> was largely unchanged
at $36.03 a barrel after settling down $1.61 on Wednesday.
(Additional reporting by Elaine Lies and Kaori Kaneko in
TOKYO)
