* Tech stocks buoyed by upbeat Intel results and demand view
* MSCI Asia ex-Japan stock index hits 3-wk high, up 1.5%
* Euro holds near 2-mth highs on easing debt concerns
* Aussie, kiwi also near 2-mth high as U.S. earnings help
* European shares set to extend rally after Intel
By Aiko Hayashi
TOKYO, July 14 (Reuters) - Asian stocks rose to a
three-week high on Wednesday, led by gains in tech shares after
Intel's results beat market expectations, while the euro held
firm near two-month peaks against a softer U.S. dollar.
European shares <> extended their rally into a
seventh session, rising 0.3 percent in early trade, as Intel's
results allayed fears that companies may be slowing down their
spending on technology. []
A strong start to the U.S. corporate earnings season this
week and easing concerns about the euro zone's sovereign debt
problems have helped buoy sentiment in recent sessions after a
raft of weak U.S. economic data sparked worries that the global
economic recovery was faltering.
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
debt-laden Greece. [].
After the close on Wall Street, Intel Corp <INTC.O>, the
world's top microchip maker, reported second-quarter earnings
that blew past analysts' expectations. []
Intel's upbeat view boosted Asian chip-related shares.
Samsung Electronics Co <005930.KS>, the world's top maker of
DRAM memory chips, rose 3.5 percent and leading contract
chipmaker TSMC <TSM.N><2330.TW> gained 1.3 percent.
[]
"We believe Intel's result is just the beginning of the
many forecast-beating earnings to be reported by major U.S.
companies," said Yu Rayming, chief investment officer of
Prudential Financial Securities Investment Trust in Taiwan.
"Investor worries about a double dip in the global economy
have apparently eased, but bear in mind there is still
uncertainty hanging over the euro zone debt problems."
The MSCI ex-Japan share index <.MIAPJ0000PUS> was up 1.5
percent, 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> 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 2.7 percent to its
highest close in three weeks, with chip gear manufacturer Tokyo
Electron <8035.T> and other chip-related shares powering
higher. Tokyo Electron rose 4.1 percent. []
The Nikkei ended at 9,795.24 points, cracking resistance at
the level of its 25-day moving average around 9,660.
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 and strong buying by foreign
investors, South Korea's benchmark share index <> closed
at its highest level in more than two years, while Taiwan
stocks <> hit a two-month closing 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. China will
also report its second quarter GDP figures on Thursday amid
signs that its rapid growth is moderating. []
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 rallies in recent weeks have been short lived as
traders quickly took profits after any negative news.
"Even though Intel may be good, there's some concern about
the bank earnings later this week. Good results from them are
necessary for the market to go much higher," said Hiroaki
Kuramochi, chief equity marketing officer at Tokai Tokyo
Securities.
EURO STEADY
In currency markets, the euro <EUR=> held steady at $1.2710
on 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 its April 12 to May 25
slide.
The New Zealand dollar <NZD=D4> pared some of its gains to
trade at $0.7170 after retail sales in May rose less than
expected. Still, the data did little to alter expectations of
more interest rate rises. []
Crude oil futures <CLc1> were little changed 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, Elaine Lies in
Tokyo and Faith Hung in Taipei)
(Editing by Kim Coghill)
