RPT-GLOBAL MARKETS-Asia stocks rise on China; yen off 15-yr high

                                
 * Australia leads Asia stocks higher on upbeat data
                                
 * Yen extends losses on intervention comment
                                
 * China PMI, Australian GDP show Asia recovery on track
                                
 * JGBs fall, yield curve resume steepening
 (Repeats to more subscribers)
                                
 By Kevin Yao
                                
 SINGAPORE, Sept 1 (Reuters) - Asian stocks rose on
Wednesday as investors cheered a manufacturing rebound in China
and rosier-than-expected Australian growth, which halted the
yen's advance towards a 15-year peak against the dollar.
                                
 Asian stocks shrugged off a flat lead from Wall Street,
reflecting belief that Asia's economic recovery could hold up
relatively well compared to the United States, which faces the
possibility of a double-dip recession.
                                
 Leading European stocks <.FTEU3> opened 0.4 percent higher,
while S&P 500 futures <.SPX> were flat.
                                
 China's manufacturing economy regained some momentum in
August, while Australia's economy grew at the fastest pace in
three years last quarter as households spent far more than
expected while exports enjoyed an Asian-driven boom.
[ID:nSGE67U0L3] [ID:nTOE68001O]
                                
 "The market is still concerned about the global recovery
momentum, but based on fundamentals, some funds will flock from
developed countries to Asia," said Daniel Chan, chief economist
and wealth management strategist BWC Capital Markets in Hong
Kong.
                                
 The MSCI index of Asia Pacific stocks outside Japan rose
1.5 percent <.MIAPJ0000PUS>, led by commodity-related shares
due to optimism about Chinese.
                                
 But the MSCI Asia index is still down about 2.5 percent so
far this year, compared to a 6.6 drop on the MSCI world-wide
index <.MIWD00000PUS>, underscoring Asia's economic resilience.
                                
 Analysts expect increased volatility in Asian stock and
bond markets as markets brace for a slowdown in the world
economy.
                                
 Japan's Nikkei average <.N225> rose 1.2 percent after
briefly hitting a 16-month low, getting a boost from the
Chinese data while technology shares crawled higher in reaction
to a sharp fall the day before.
                                
 Australian stocks <.AXJO> jumped just over 2 percent, the
sharpest daily rise since early July, as investors applauded
Australia's outperformance against sluggish global economies.
                                
 Australia and New Zealand Banking Group <ANZ.AX> led in a
rally in local bank shares, powering 2.4 percent higher.
                                
 South Korean stocks <.KS11> gained 1.3 percent, propelled
by auto and retail counters including Kia Motors <000270.KS>
and Lotte Shopping <023530.KS>, but key technology shares
continued to fall amid persisting concern over global economic
recovery.
                                
 "The market is being helped by gains in defensive, domestic
consumption issues as investors seek safer bets," said Lee
Sun-yeb, a market analyst at Shinhan Investment Securities.   
 U.S. Treasury yields rebounded slightly after the benchmark
10-year yield <US10YT=RR> recorded its largest monthly drop in
August since late 2008, when markets were reeling from the
Lehman Brothers collapse.
                                
 YEN OFF 15-YEAR HIGH
                                
 The yen fell as upbeat Chinese and Australian data improved
investors' appetite for risk. It extended losses after Japanese
ruling party powerbroker Ichiro Ozawa, challenging Prime
Minister Naoto Kan in a party leadership vote, said he would
implement steps including intervention if the yen rose sharply.
[ID:nTFD006532]
                                
 The Australian dollar jumped 1 percent to 75.85 yen
<AUDJPY=R> and the dollar edged up 0.3 percent to 84.40 yen.
<JPY=>
                                
 Japanese government bonds fell as investors braced for a
debt sale, and the yield curve resumed steepening as superlongs
sagged on the underlying prospect of potential political change
watering down the government's stance on fiscal austerity.
                                
 The 10-year yield was up 5 basis points at 1.010 percent
while the 20-year yield climbed 7.5 basis points to 1.735
percent, heading back towards a seven-week high of 1.835
percent hit on Monday. [ID:nTOE68003K]
                                
 Gold prices <XAU=> hit a fresh one-month high at $1,250.55
an ounce, while crude <CLc1> gained 36 cents to $72.28 a barrel
after tumbling 3.7 percent the previous day on signs U.S.
stockpiles rose further last week and prospects of bad weather
to suppress demand at the end of the driving season.
 (Additional reporting by Jungyoun Park in SEOUL)
 (Editing by Kazunori Takada)