(Repeats to more subscribers with no changes to text)
By Anshuman Daga
SINGAPORE, May 5 (Reuters) - Asian stocks rose to their
strongest in nearly four months on Monday and the dollar held
on to most of last week's gains after jobs data suggested the
U.S. economic slowdown may not be as severe as investors had
expected.
Commodities extended Friday's gains, with gold <XAU=> and
grains <WN8> up in early trade, while Treasuries were flat.
Stock markets in Australia <> and Singapore both
gained 0.6 percent, while Hong Kong <> was steady, but
volumes were thin as Japan and Korea were closed for national
holidays. UK markets are also shut on Monday.
By 0215 GMT, MSCI's measure of Asian stocks outside Japan
<.MIAPJ0000PUS> was up 0.3 percent at 499.4 after rising 1.7
percent on Friday.
The benchmark jumped 8 percent last month, led by battered
financials on expectations the global credit crisis may have
reached a turning point. The index is still down 6 percent this
year.
Global stocks as measured by MSCI <.MIWD00000PUS> gained
5.3 percent in April, its largest monthly gain since December
2003.
U.S. stocks ended higher on Friday after data showed The
world's largest economy shedding jobs at a slower pace than
expected, easing concerns about the risk of a deep recession.
The U.S. shed lost 20,000 jobs last month, fewer than the
80,000 that economists had anticipated. []
Still investor Warren Buffett, the world's richest person,
however said on Sunday the U.S. economy was in recession and
banks would face more pain.
In Asian markets, shares in China's top e-commerce firm
Alibaba.com Ltd <1688.HK> were high profile losers, down 5
percent after Microsoft Corp <MSFT.O> abandoned its bid to buy
for Alibaba's major investor Yahoo Inc <YHOO.O>.
[]
Microsoft's move could be positive for U.S. stocks on
Monday as it is expected to drive up the software company's
heavily weighted shares.
U.S. RATE CUTS ALMOST OVER
Markets will focus on Federal Reserve Chairman Ben
Bernanke's speech on Monday on mortgage delinquencies and
foreclosures.
The U.S. dollar was a shade softer but held on to of most
of last week's gains, supported by expectations the Federal
Reserve will not need to cut interest rates again any time
soon.
"The drop in the unemployment rate has strengthened the
market's conviction that the Fed is done," said Darren Gibbs,
an economist at Deutsche Bank.
The Federal Reserve lowered its benchmark federal funds
rate on April 30 by one-quarter point to 2 percent in what may
be the last in a series of cuts aimed at aiding an economy hit
by a housing slump and credit market turmoil.
Europe will be a major focus of investors' attention this
week as the European Central Bank (ECB) and Bank of England
meet separately to discuss interest rates against a backdrop of
declining economic strength. "The bigger picture for forex
markets remains that we think the ECB is being gradually forced
by the data flow into accepting that interest rates need to
come lower, while the Fed rate cutting cycle is in the end
game," UBS forex strategist Ashley Davies said in a note.
In commodity markets, oil was little changed above $116 a
barrel, pausing after jumping more than 3 percent last week,
supported by further supply disruptions in Nigeria.
U.S. light crude for June delivery <CLc1> was flat at
$116.4 a barrel.
Gold rebounded on Monday as bargain hunters snapped up
bullion after a fall to a four-month low last week, but trading
was thin as Japanese markets were closed.
Gold <XAU=> rose to $861.10/864.10 an ounce from
$855.80/857.00 an ounce late in New York on Friday, when it
tumbled to $845 an ounce, its lowest since Jan. 2, after the
dollar jumped on better-than-expected U.S. jobs data.
(Additional reporting by Wayne Cole)
