* Asian shares rise after Fed lifts U.S. growth forecasts
* Dollar hits seven-week low vs yen on exporters selling
* Gold hits record high on weak dollar, media report on
India
* European stocks seen gaining after Fed
(Repeats to more subscribers)
By Umesh Desai and Yoo Choonsik
HONG KONG/SEOUL, Nov 25 (Reuters) - Asian stocks rose on
Wednesday after the Federal Reserve raised U.S. growth
forecasts for 2010, while gold struck a record high on a weaker
dollar and a media report India was "open to buying" more of
the precious metal.
European shares were seen rising on the improved prospects
for the U.S. economy and U.S. S&P 500 futures <SPc1> were up
0.3 percent.
The dollar <JPY=> fell to its lowest in seven weeks against
the yen and remained under pressure against other major
currencies on a combination of factors including expectations
that U.S. interest rates will remain low for some time.
Spot gold <XAU=>, which has risen 13 percent so far this
month, held above $1,177.4 per ounce after hitting a high of
$1,178.3 on a weakening dollar and the India's Financial
Chronicle newspaper report. []
"The India report has certainly helped to push the momentum
in the market today," said Darren Heathcote, head of trading at
Investec Australia.
Asian stock markets held firm, with the MSCI index of Asia
Pacific stocks traded outside Japan <.MIAPJ0000PUS> rising 0.81
percent. The Thomson Reuters index of regional shares
<.TRXFLDAXPU> was up 1.29 percent.
Tokyo stock market's benchmark Nikkei average <>
turned higher after sliding to a four-month intraday low, but
the outlook remained murky on doubts about the health of the
world's second-largest economy.
As confidence in Japan's economy wanes, financial markets
have been reflecting some of that concern with the stock market
trailing rest of the region significantly these past few weeks.
((For a related graphic, double-click:
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WARY EYE ON U.S. CONSUMPTION
"There is uncertainty about the outlook for corporate
revenue in an appreciating yen environment," Toshiro Muto,
chairman of Daiwa Institute of Research and former Deputy Bank
of Japan Governor, told a news conference in Hong Kong.
"There is an observation that Japanese banks are
strengthening capital procurement. And third, although not the
main reason, changes in the Japanese government have created
uncertainty about Japanese policies,"
Pension Funds have been cutting stocks holdings and
increasing exposure to foreign holdings to diversify and
rebalance their investments.
The MSCI index of non-Japanese Asia Pacific stocks has
jumped 66 percent so far this year, whereas the Nikkei average
is up just 7 percent over the same period.
Investors in Asian stock markets are maintaining a wary eye
on the pace of recovery in U.S. consumption, with shopping
activities on this week's so-called black Friday likely to
provide an early guide.
Australian stocks and the Aussie dollar were both boosted
by upbeat comments from a top central banker which boosted
expectations that the central bank could rise rates next week.
U.S. crude oil prices <CLc1> rebounded above $76 a barrel
after falling 2 percent in the previous session on
disappointing U.S. growth and data showing a big build in crude
inventories, both signalling weak demand in the world's top
energy user.
(Editing by Kazunori Takada)
((choonsik.yoo@thomsonreuters.com; +65 6334 4090; Reuters
Messaging: choonsik.yoo.reuters.com@reuters.net))
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