By Tomasz Janowski
SINGAPORE, April 16 (Reuters) - Asian stocks scored solid
gains on Wednesday, with high-tech exporters buoyed by a
reassuring outlook from top chipmaker Intel Corp <INTC.O> and
energy shares underpinned by record high oil prices.
Financial stocks also climbed after several U.S. regional
banks' quarterly results beat forecasts, suggesting it was not
all doom and gloom in a sector roiled by the U.S. mortgage
market meltdown and the global credit crunch.
European shares were expected to track their U.S. and Asian
peers, with financial bookmakers expecting major markets in
London <>, Frankfurt <> and Paris <> to open
between 0.9 percent and 1.2 percent higher.
"There is more confidence in the market and people are
perceiving that there is a little more value," said Robert
Hook, portfolio manager at Australian firm SG Hiscock & Co.
The battered U.S. dollar held ground against the euro
<EUR=>, clinging to gains made after surprisingly strong U.S.
price and manufacturing data suggested the Federal Reserve may
be less aggressive in cutting interest rates than earlier
thought. []
But it eased against the yen, reflecting caution ahead of
quarterly results from top Wall Street names such as JPMorgan
Chase <JPM.N>, Merrill Lynch <MER.N> and Citigroup <C.N>,
heightened by a report of more write-downs at Merrill.
[]
INTEL BOOST
On Tuesday, leading U.S. regional banks, including U.S.
Bancorp <USB.N> and Regions Financial Corp <RF.N>, beat
expectations with first-quarter profits and expressed
confidence they could withstand rising credit losses
[].
Investor sentiment was also lifted after Intel, the world's
largest maker of semiconductors, affirmed its 2008 profit
margin target, reassuring investors concerned about the impact
of a weak U.S. economy [].
Japan's Nikkei average <> advanced 1.2 percent, led by
high-tech exporters such as Sony Corp <6758.T>, with financial
stocks, including sector leader Mitsubishi UFJ Financial Group
<8306.T>, also gaining.
The MSCI's measure of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 1 percent by 0600 GMT, building on
Tuesday's modest 0.5 percent gain, though the index is still
down almost 11 percent so far this year.
Taiwan <> led the region, closing 1.6 percent higher
while Hong Kong stocks <> lagged, up 0.7 percent at the
midsession.
Asia's energy and resource stocks were among the top
gainers, benefiting from high oil prices.
Analysts said a Wall Street Journal report saying Merrill
Lynch would announce $6-$8 billion of asset write-downs had
limited impact, although it did exert some pressure on the
dollar and some banks in the region trimmed gains.
"Anything negative is just going to affect the financial
stocks, that's for sure," said Lucinda Chan, division director
at Macquarie Equities in Sydney. "But the news doesn't take me
by surprise and that is why people are not totally giving up.
Everyone's in a bit of standstill."
Since the first wave of the U.S. subprime mortgage fallout
hit financial markets eight months ago, investors have been
gnawed by uncertainty over how much damage the turmoil
inflicted on economies and company balance sheets.
Markets welcomed even recent dismal earnings from some
major banks as a sign that they were scrubbing their books
clean and putting the credit crunch behind them.
RARE RELIEF
The dollar held steady against the euro <EUR=> and dipped
0.1 percent against the yen.
The U.S. currency won a rare reprieve after a gauge of New
York manufacturing activity rose in April and U.S. producer
prices jumped 1.1 percent in March, more than expected.
Worries that the world's biggest economy may have already
stumbled into recession have kept the U.S. currency under
pressure for months contributing to a global rally in
commodities, most of which are priced in U.S. dollars.
The weak dollar and supply worries pushed oil prices to a
record high above $114 a barrel on Tuesday. U.S. crude futures
<CLc1> edged down in Asia after the dollar's uptick, but held
firm above $113.
Share price gains reduced the safe-haven appeal of
government bonds, and Japanese government bond futures dipped
0.2 point by 0545 GMT <2JGBv1>, though uncertainty ahead of
U.S. bank earnings offered support.
Gold <XAU=>, used as an inflation hedge at the time of
soaring commodity prices and an attractive investment
alternative during financial market turbulence, eased to around
$925 per ounce after Tuesday's oil-fuelled rally.
