* Tech stocks buoyed by upbeat Intel results and demand view
* MSCI Asia exJapan stock index hits 3-wk high, now up 1.4%
* Euro holds near 2-mth highs on easing debt concerns
* Aussie, kiwi also near 2-mth high as U.S. earnings help
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 micro-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 Samsung Electronics Co <005930.KS>, the world's
top maker of DRAM memory chips, and leading contract chipmaker
TSMC <TSM.N><2330.TW>, which rose 3.5 percent and 1.3 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> was up 1.4
percent by midday, having earlier risen as much as 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 and
said it would be hiring more workers in the next year.
[] []
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 as much as 2.8
percent to shoot above a key resistance level, with chip gear
manufacturer Tokyo Electron <8035.T> and other chip-related
shares powering higher. Tokyo Electron rose nearly 4 percent.
[]
Japanese stocks outperformed other regional markets,
further helped by a climb in shares of Mizuho Financial Group
<8411.T> after the banking group set the price of its new
shares for public offering on Tuesday. []
Shares of Komatsu <6301.T>, the world's No.2 construction
machinery maker, jumped more than 5 percent after it sharply
raised its full-year profit forecast, citing
better-than-expected first-half sales in Asia and Latin
America, as well as a pick up in demand in Japan and the United
States. []
Buoyed by gains in tech stocks, South Korea's benchmark
share index <> hit its highest intraday levels in more
than two years, and Taiwan stocks <> rose to a two-month
high. Both were up more than 1 percent.
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 in the short term.
An accumulation of long positions in the market, especially
in blue-chip exporters, could slow upward momentum, one analyst
said. Many investors remain cautious about deploying fresh
money 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=> held steady 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 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 $0.7173 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 0.18 point to 141.22 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> dipped below $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)
