* Asia stocks up 1.6%, "likely to outperform other markets"
* U.S. jobs, consumer data encouraging for global recovery
* Yen under pressure as investors move back to riskier
assets
* Yen flows from hedge funds blamed for fall
By Nick Macfie
SINGAPORE, March 8 (Reuters) - Asian shares rose on Monday
as encouraging U.S. job and consumer data reinforced views that
the world's largest economy is steadily recovering, fuelling a
move into riskier assets and out of safe havens like the yen.
European stocks <> were expected to follow Asia
higher and open up as much as 0.5 percent, buoyed as well by
easing concerns over Greece's debt crisis, which supported the
euro <EUR=>.
Japan's benchmark Nikkei average <> rose 2.1 percent
while the broader Topix <> gained 1.8 percent. The MSCI
index of Asian shares outside Japan <.MIAPJ0000PUS> was up 1.6
percent.
U.S. Labor Department data on Friday showed employers cut
fewer jobs than expected in February, suggesting that the
economy may be strong enough to start creating new jobs soon.
[]
Other U.S. data showed consumer credit rose in January for
the first time in a year. A resurgence in consumer spending is
seen as vital to a sustainable global recovery.
Tuesday marks the first anniversary of the U.S. stock
market's slide to 12-year closing lows on March 9, 2009. Since
then, the Standard & Poor's 500 Index <.SPX> has climbed nearly
70 percent.
Asian stocks are likely to outperform other global markets
in the coming months thanks to stronger earnings growth, said
Andrew Pease, Senior Investment Strategist Asia-Pacific for
Russell Investment and author of the Russell Asia Market
Commentary.
Pease says that although Asia's (ex-Japan)
price-to-earnings ratio, relative to other markets, was high by
historic standards, it could be justified by stronger
medium-term growth prospects.
"In terms of asset class valuation, we see world equities
as broadly fairly valued but we believe Asian equities have
more profit potential," Pease said. "At 12.5 times, Asia's
forward PE ratio is spot on the 20-year average."
Asian company valuations were generally coming down to
"attractive levels" and buyers were coming back into the
market, said Lorraine Tan, director of Asia Equity Research
with S&P.
She also said there were few other attractive options for
investors and with the earnings season in Asia practically
over, some uncertainties had been removed.
"There are more increases in earnings than reductions in
expectations," she said.
With 59 percent of Asia's large and mid-cap companies
having reported quarterly results out of a total of 705 firms,
data from StarMine shows 57 percent had beaten or met market
estimates.
Only Thailand bucked the Asian stock market trend, with the
SET <> index slipping 0.35 percent, wary of plans for
anti-government protests.
CURRENCIES
The yen <JPY=> fell broadly, with traders citing
yen-selling by hedge funds. Currencies such as the Australian
dollar rose against the yen, getting a boost from a rise in
demand for equities <.MIAPJ0000PUS> and other risky assets.
"The U.S. jobs report last week helped investor
anticipation for further recovery in the next employment report
and encouraged them to seek risky assets," said Mitsuru Sahara,
chief manager of currency derivatives trading at Bank of
Tokyo-Mitsubishi UFJ.
The yen was also weighed down by speculation that the Bank
of Japan would further loosen its already lax monetary policy
soon to address deflationary pressure. []
The euro rose 0.5 percent against the yen to 123.66 yen
<EURJPY=R>, supported in part by comments from French President
Nicolas Sarkozy, who promised debt-laden Greece that euro zone
countries would help it overcome its financial problems.
[]
The dollar touched a two-week high against the yen of 90.69
yen.
The dollar index <.DXY> was 0.3 percent lower at 80.189,
with near-term support seen around 79.55/60 -- its Feb 17 low
-- with the latest data showing currency speculators cutting by
more than half their long bets on the U.S. dollar in the week
to March 2. [].
In commodities markets, gold edged higher after ending
about $20 higher last week as the Greece crisis ignited safe
haven buying. Spot gold <XAU=> was trading at $1,134.62.
Crude oil for April delivery <CLc1> rose 43 cents to $81.93
a barrel, buoyed by the weaker dollar and the U.S. jobs data.
The Nasdaq <> marked its highest close in 18 months on
Friday. Both the Dow Jones industrial average <> and the
Standard & Poor's 500 Index <.SPX> closed at six-week highs
with gains of more than 1 percent.
(Additional reporting by Kaori Kaneko in Tokyo, Anirban Nag in
Sydney and Anshuman Dag in Singapore)
