* Tech stocks buoyed by upbeat Intel results
* MSCI Asia exJapan stock index up 1.6 pct, hits 3-wk high
* Euro holds near 2-mth highs on easing debt concerns
* Aussie, kiwi also near 2-mth high as U.S. earnings help
(Repeats to more subscribers)
By Aiko Hayashi
TOKYO, July 14 (Reuters) - Asian stocks rose to a
three-week high on Wednesday, led by gains in technology issues
after Intel's results beat market expectations, while the euro
held firm near two-month peaks against a softer U.S. dollar.
Helping drive sentiment was a strong start to the U.S.
corporate earnings season this week and easing concerns about
the euro zone's sovereign debt and the financial sector.
After the close on Wall Street, Intel Corp <INTC.O>, the
world's top chip maker, reported second-quarter earnings that
blew past analysts' expectations, allaying fears that companies
may be slowing down their spending on technology.
[]
Intel's upbeat view boosted shares of Asian chip-related
shares such as TSMC <TSM.N><2330.TW> and Tokyo Electron
<8035.T>, which rose 1.7 percent and 3.8 percent, respectively.
Investors also brushed aside a Moody's downgrade of
Portugal's sovereign credit rating by two notches, and chose to
focus on the strong response to a treasury bill tender by
Greece.
The debt-laden country sold 1.625 billion euros ($2.03
billion) of T-bills at a better rate than it pays to borrow
under a European Union/International Monetary rescue fund.
[].
"There's been growing doubts about the health of the U.S.
economy, but these better-than-expected Intel results have
really changed sentiment in the market," said Toshiyuki
Kanayama, a market analyst at Monex Inc in Japan.
The MSCI ex-Japan share index <.MIAPJ0000PUS> rose 1.7
percent to its highest since late June, after U.S. stocks
rallied for a sixth straight day on Tuesday. []
Optimism about this season's earnings rose after Alcoa
<AA.N>, the first Dow component to report, posted
second-quarter results late on Monday that beat expectations.
Rail company CSX also posted a higher-than-expected profit.
[] []
Adding to the upbeat note, Intel executives said there are
clear signs of renewed spending by corporations.
"Now that corporations have some breathing room in the
economy and their budgets, you're starting to see those
machines that were four- or five-years-old get refreshed,"
Intel CEO Paul Otellini said in a conference call with
analysts.
Japan's Nikkei average <> surged 2.8 percent to shoot
above a key resistance level, with chip-related shares powering
higher. []
The focus is now on quarterly reports from JPMorgan <JPM.N>
on Thursday and General Electric <GE.N> on Friday.
Still, some market watchers remained wary, noting that
further gains may be hard to achieve.
An accumulation of long positions in the market, especially
in blue-chip exporters, means that any further rises are likely
to take time, one analyst said. And many investors remain
cautious after a recent string of weak readings on the U.S.
economy suggested that its recovery may be slowing.
[]
EURO STEADY
In currency markets, the euro <EUR=> was firm at $1.2720 on
the trading platform EBS, having jumped nearly 1 percent in the
previous session. It hit a two-month peak of $1.2739 on
Tuesday.
Investors were also seen adding to long positions in
high-yielding currencies amid a seemingly significant
improvement in investors' appetite for riskier assets.
"What we are seeing is that cash is being put back to work
with all the negative news surrounding the euro zone receding,"
said Greg Gibbs, currency strategist at RBS, Sydney.
"Some of the risk premium that was being attached to the
euro zone is being taken off. The downgrade of Portugal was
very much expected and we could see the euro rise a bit more
from here."
The Aussie and New Zealand dollars held near two-month
highs. The Aussie <AUD=D4> climbed to $0.8851 with resistance
at the June high of $0.8860, and at $0.8885, the 100-day moving
average and 61.8 percent retracement of April 12 to May 25
slide.
The New Zealand dollar <NZD=D4> pared some of its gains to
trade at $0.7180 after retails sales in May rose less than
expected. Still, it did little to alter expectations of more
interest rate rises. []
Japanese government bonds fell as a surge by Tokyo stocks
curbed appetite for safe haven debt.
The fall in JGBs was limited by bargain hunting from a
variety of investors. September 10-year JGB futures <2JGBv1>
fell 0.12 point to 141.28 after hitting 141.12, a two-week low.
The benchmark 10-year yield <JP10YTN=JBTC> rose 1.5 basis
points to 1.140 percent.
Crude oil futures <CLc1> were little changed at around $77
a barrel after jumping nearly 3 percent overnight as
better-than-expected corporate earnings boosted confidence
about the economy. []
(Additional reporting by Anirban Nag in Sydney and Elaine Lies
in Tokyo)
(Editing by Kim Coghill)
