* Asia shares gain 0.7 pct, boosted by tech, resource
shares
* Hopes for further econ recovery seen supporting equities
* Nikkei dips on profit-taking, yen's resilience
* Euro drifts, still stymied by EU squabbling over Greece
aid
By Masayuki Kitano
TOKYO, March 23 (Reuters) - Asian shares inched back
towards recent two-month highs on Tuesday as recovering
commodity prices boosted shares of resource firms and as tech
stocks drew support from gains in their U.S. peers.
The euro <EUR=> held its ground after rebounding from a
three-week low against the dollar overnight, but it remained
under pressure as major European powers argued over whether to
extend financial assistance to debt-laden Greece.
European stocks <> were expected to open higher,
breaking a three-session losing run, as the market tracked
gains on Wall Street, where the passage of a fiercely debated
healthcare reform bill ended some uncertainty hanging over
markets and prompted investors to return cautiously to riskier
assets.
But gains were likely to be limited as investors awaited
key U.S. housing data later in the day (1400 GMT) for clues on
the state of the U.S. recovery, which is key to a sustained
global rebound from the worst financial crisis in generations.
Housing market weakness and high unemployment have been a
persistent drag on the world's largest economy, in sharp
contrast to a rapid recovery in Asia which has seen foreign
investors flocking to the region's stocks, bonds and
currencies.
"Market players are feeling a sense of reassurance about
economic conditions, which look strong especially in emerging
market countries," said Mitsushige Akino, chief fund manager at
Ichiyoshi Investment Management in Japan.
"So stocks that have exposure to such markets are on solid
footing," Akino said.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 0.8 percent to 418.92, clawing towards a
two-month peak of 422.64 hit last week and putting it back in
positive territory for the year to date.
Mining and oil company shares rose as commodities prices
stabilised after losing ground on Tuesday. Chinese oil producer
CNOOC <0883.HK> rose 1.3 percent, while global miner BHP
Billiton <BHP.AX> climbed 1.1 percent in Australia.
Tech shares were also strong gainers across much of the
region, with expectations of stronger consumer demand for flat
screen TVs and other gadgets boosting major producers such as
Samsung Electronics <005930.KS>, which rose 1 percent.
Japan's benchmark Nikkei 225 average bucked the broader
trend, however, slipping 0.5 percent <> as recent gainers
such as Canon Inc <7751.T> lost steam and as investors
cautiously watched moves in the yen.
Still, Toshiba Corp <6502.T> jumped 3.6 percent after it
said it was in talks with a company backed by Microsoft Corp
<MSFT.O> Chairman Bill Gates to jointly develop advanced
nuclear reactors. []
The biggest risk for Asian equities is if the U.S. economy
slows down again, but such worries are unlikely to emerge in
the near-term, especially as the U.S. Federal Reserve is likely
to keep interest rates at super-low levels for at least a few
more months, Akino said.
"For the time being, I think equities will stay on a rising
trend, with market players focusing on corporate earnings," he
said.
GREEK DANCE
The euro was largely steady from late U.S. levels at
$1.3560 <EUR=>, and edged up 0.2 percent to 122.40 yen
<EURJPY=R>. However, continuing disagreement between
Germany and other European states over financial support for
debt-laden Greece was likely to weigh on the euro heading into
an EU summit at the end of the week. []
"Even though we saw a sharp recovery overnight, probably
thanks to the passage of the healthcare reform bill in the
U.S., concern over Greece and tightening, not just in China but
also in India, should linger in the market," said Masafumi
Yamamoto, chief FX strategist for Japan at Barclays Capital.
"There's very partial risk aversion away from the euro and
some assets - but overall risk appetite is still there."
The Reserve Bank of India, citing intensifying inflationary
pressures and a steady economic recovery, caught investors off
guard with a 25 basis point tightening late on Friday, weighing
on global markets. []
Crude prices <CLc1> eased 40 cents to $81.22 per barrel,
with investors awaiting U.S. oil inventory data later in the
day, while gold edged up <XAU=> after hitting its lowest in
nearly a month on Monday.
Shanghai's benchmark third-month copper futures contract
<SCFc3> rose as much as 1 percent before paring gains.
U.S. Treasuries were little changed, holding gains from the
previous day but capped ahead of a string of auctions this
week.
* For state of play of Asian stock markets, click:
<>
* For Reuters Global Investing Blog, click:
http://blogs.reuters.com/globalinvesting;
* F MacroScope Blog, click:
http://blogs.reuters.com/macroscope
* For Hedge Fund Blog Hub, click:
http://blogs.reuters.com/hedgehub)
(Additional reporting by Aiko Hayashi and Charlotte Cooper)
(Editing by Kim Coghill)
