* Asian shares hit 7-mth high after U.S. confidence data
* Oil hits 6-mth high above $62/barrel ahead of OPEC
* Yen falls, Australian dollar rallies as risk appetite
grows
By Rafael Nam
HONG KONG, May 27 (Reuters) - Asian shares rose on
Wednesday to their highest level in more than seven months
after a jump in U.S. consumer confidence reinforced
expectations the global economy has hit a bottom, even if
recovery appears fragile.
The safe-haven yen fell, while currencies seen as riskier
bets, such as the Australian dollar, advanced. In another sign
of improving investor confidence, crude prices pushed to a
six-month high above $62 a barrel.
The bolder mood from investors follows a couple of days of
caution after North Korea sparked alarm by conducting a nuclear
test and launching short-range missiles, and week long fears
that the United States could lose its top-notch AAA rating.
"We're seeing most risk proxies firmer," said Su-Lin Ong, a
senior economist at RBC Capital Markets in Sydney.
"It's not to suggest that there's an 'onward upwards'
recovery in the U.S. and the globe but it is consistent with
the idea that the worst is behind us."
The MSCI index of Asian stocks outside Japan
<.MIAPJ0000PUS> had gained close to 2.5 percent as of 0340 GMT
to reach its highest level since last October when markets were
tumbling in the wake of the collapse of Lehman Brothers.
Japan's Nikkei average <> rose 1.5 percent and was
trading just below its 2009 high struck earlier in May.
Elsewhere in Asia, shares in Hong Kong <> jumped more
than 4 percent and Taiwan <> rose more than 2 percent. The
main indexes in South Korea <> and Singapore <.FTSTIL>
advanced well over 1 percent.
U.S. consumer confidence soared in May to its highest level
in eight months, even though house prices fell at a record pace
in the first quarter, data showed on Tuesday. []
Consumer spending accounts for roughly two-thirds of the
U.S. economy, so is a positive signal for global trade
including for Asian exporters.
Japanese exports rose in April for the second month
running, data showed on Wednesday, providing another sign that
the slump in global trade may have bottomed. []
Still, Germany reported earlier this week a record
contraction in its economy in the first quarter, reminding
investors of the damage done by the financial crisis.
[]
FEELING GOOD?
The more upbeat sentiment comes after North Korea rattled
investors this week by carrying out a nuclear test, although
analysts expect market impact to be short-lived.
Concerns the United States could lose its AAA rating as it
ramps up borrowing to feed a widening budget deficit has also
weighed on markets since last week.
However, the sale of $40 billion in two-year U.S. Treasury
notes on Tuesday was met by strong interest, especially from
overseas, suggesting there are willing buyers of U.S. debt.
Still, traders said longer maturities might not be met by
such strong demand. Total issuance for the week is slated to
total $101 billion, matching a record set earlier this year.
Two more offerings this week will be for five-year and
seven-year debt.
The renewed risk appetite was evident in currency markets.
The yen, seen as a safe haven against risk, fell against
major currencies.
The dollar rose 0.2 percent to 95.14 yen, after climbing as
high as 95.37 yen <JPY=> on trading platform EBS.
The euro gained 0.2 percent to 133.05 yen <EURJPY=R> while
sterling, which has risen steadily against the yen since
January, touched its strongest level since early November at
152.28 yen <GBPJPY=R>.
The Australian dollar <AUD=D4> hit an eight-month high
against the U.S. currency as higher-yielding currencies, which
usually benefit when risk appetite increases, firmed.
The so-called Aussie has jumped more than 8 percent this
month, supported by both a broad retreat in the U.S. dollar and
a rebound in commodity prices.
Crude prices <CLc1> pushed to a six-month high above $62 a
barrel, gaining some support in the wake of the U.S. consumer
confidence data and comments from Saudi Arabia's oil minister
that oil prices would hit $75 a barrel during the third and
fourth quarters of this year.
Oil has rallied since its lows in December below $33 a
barrel.
OPEC ministers meet in Vienna on Thursday to consider
production policy but are expected to leave output unchanged.
[]
