* US stock futures snap 4-day drop, head upward
* Tokyo Electric up nearly 12 pct, leads Nikkei higher
* Gold bounces back, but ETF holdings slip worrisome
By Ramya Venugopal
SINGAPORE, April 13 (Reuters)- - The yen weakened and
Asian stocks headed higher on Wednesday, with investors looking
for fresh opportunities to bet on risky assets after a sharp
drop in oil the previous day caused an unwinding of positions.
Crude oil priced edged up after falling about 3 percent
overnight, as the market focus shifted to supply concerns in
Libya and upcoming U.S. demand. U.S. stock futures steadily
gained in Asia, suggesting the sudden shakeout in bets on
equities and higher-yielding currencies may have run its course.
The pullback in commodity prices had made investors cut
exposure to risky assets such as emerging market stocks and
currencies that have had steep gains recently such as the
Australian dollar.
The MSCI index of Asia Pacific shares outside Japan
was up 0.8 percent in choppy trade, with
technology-related shares leading the way higher.
Tokyo's Nikkei finished up 0.9 percent, with shares
of Tokyo Electric surging on heavy volume on a report
that its liabilities stemming from Japan's nuclear crisis may be
capped. Other utilities stocks slid since they may have to help
foot the bill.
U.S. stock futures rose 0.4 percent <SPc1> after falling for
four consecutive sessions, suggesting a higher open on Wall
Street.
The yen slipped more than 0.6 percent against the dollar and
euro as some analysts said its gains this week were because of
stretched positioning and may be an opportunity for investors to
re-enter or extend their short positions.
"I think the markets at the moment are just pausing to take
a bit of profit and assess things in the yen crosses," said
David Forrester, FX strategist at Barclays Capital in Singapore.
"We have to remember that over the past two weeks we have had
a big rush into yen-funded carry trades," Forrester said.
Brent crude for May <LCOc1>, which expires on Thursday, rose
0.8 percent to $121.78 a barrel. U.S. May crude <CLc1> added 0.4
percent to $106.68.
Gold bounced higher on Wednesday after posting its biggest
fall in a month in the previous session. Declines in bullion and
silver ETF holdings suggest investors are nervous following a
second bearish forecast from commodity bull Goldman Sachs.
Spot gold added more than $3 to $1,458.31 an ounce
after falling as low as $1,443.49 an ounce on Tuesday. Gold hit
a record around $1,476 an ounce on Monday on the prospect of
more declines in the dollar.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust , said its holdings slipped to 1,216.299
tonnes by April 12 from 1,217.209 tonnes on April 7.
U.S. Treasuries dipped as Asian investors took advantage of
their hefty gains overnight to offload some of their holdings,
but market players say prices could climb further if U.S. retail
sales data due later in the day shows inflation is crimping
consumer spending.
(Additional reporting by Ian Chua in SYDNEY, Masayuki Kitano in
SINGAPORE and Ayai Tomisawa in TOKYO.; Editing by Richard
Borsuk and Robert Birsel)
