GLOBAL MARKETS-Asia stocks rise, yen steady but outlook unclear

                                
 (Repeats to widen distribution)
                                
 * Equities climb but investors still cautious on risk
                                
 * Yen direction is unclear after 15-year high hit overnight
                                
 * Australian job numbers push Australia dollar to 4-mth
high
                                
 * Rumours about China regulators spook commodity markets
                                
 By Kevin Plumberg
                                
 HONG KONG, Sept 9 (Reuters) - Asian stocks edged up and the
yen held below a 15-year high on Thursday, after a small rally
on Wall Street driven by successful European bond auctions gave
investors an excuse to lighten up on their bets.
                                
 The two biggest issues on investors' minds -- European
financial stability and the slowing U.S. recovery -- held
bargain hunting in check and risk taking to a minimum.
                                
 Australia was the exception, where rising equities led Asia
on a solid labour market report, which also drove the
Australian dollar to a four-month high. [ID:nSYU010602]
                                
 With few major economic reports due, traders will probably
focus on significant chart indicators for the rest of the day.
                                
 The 55-day moving average of the U.S. dollar index <.DXY>
has been capping moves higher for the last three weeks, while
the 100-day moving average is the closest obstacle in front of
U.S. S&P 500 index gains <.SPX>.
                                
 Meanwhile, the yen's 11 percent rise this year has
depressed Japanese equity valuations, with stocks trading at
the cheapest relative to expected earnings since December 2008.
                                
 With uncertainty rife about how much longer the yen's climb
has to run, investors were cautious about rebuilding their
Japanese stock portfolios just yet.
                                
 "Worries about Europe were soothed somewhat following a
bond auction in Portugal, and that prompted short-covering in
the market, which was hit hard by the advance in the yen versus
the dollar and the euro yesterday," said Tsuyoshi Segawa, an
equity strategist at Mizuho Securities. [ID:nLDE687156]
                                
 "But market players were reminded that Europe's sovereign
concerns are continuing and that's not something that will
improve right away," Segawa said.
                                
 CHEAP JAPAN
                                
 The Nikkei share average <.N225> closed 0.8 percent higher
but was still down 3 percent for the quarter and is the
third-worst performing Asian stock market this year.
                                
 Japanese stocks were trading at 12.9 times expected
earnings one year hence, the lowest since December 2008, when
markets were in the midst of the financial crisis, Thomson
Reuters I/B/E/S data showed.
                                
 "Relatively low prices may trigger occasional bottom
fishing, but we do not see the market emerging from its
downward spiral until momentum indicators stop deteriorating,"
TrimTabs Investment Research said in a report.
                                
 The MSCI index of Asia Pacific stocks outside Japan was up
0.6 percent, led by early gains in the materials sector. The
index has risen 10 percent in the quarter so far, slightly
outperforming the all-country world index's 8.6 percent rise
<.MIWD00000PUS>.
                                
 Investors were skittish just about everywhere though and
did not hesitate to dump positions on the slightest sign of
trouble.
                                
 The Shanghai composite index <.SSEC> led declining Asian
markets, falling 1.1 percent after a sudden drop in commodities
futures prompted some profit taking ahead of a slew of economic
data to be released over the next few days.
                                
 The yen was steady with global equity markets edging
higher. The dollar was at 83.64 yen <JPY=>, down 0.3 percent on
the day but above a 15-year low hit on Wednesday around 83.34
yen.
                                
 The Australian dollar was a big mover on the day, rising to
$0.9224 <AUD=>, the highest since May, before drifting to
$0.9213, up 0.3 percent. Australian employment in August was
surprisingly strong, lifting the stock market <.AXJO> and
knocking bond futures lower <YTCc1>.
                                
 "It's good news in a sense it means household income and
spending will probably grow," Michael Blythe, chief economist
at CBA in Sydney, said of the surge in Australian employment.
"But it comes at the risk of rising inflation pressure as
well."
                                
 U.S. oil and Brent futures traded nearly flat on the day,
at $74.78 a barrel <CLc1> and $78.22 a barrel <LCOc1>, cutting
gains on chatter that Chinese regulators were investigating
speculative funds in the rubber market. The rumour caused
widespread weakness in China-traded commodities, from copper to
zinc, analysts said. [ID:nTOE68803K]
 (Additional reporting by Aiko Hayashi in TOKYO; Editing by
Alex Richardson)