RPT-GLOBAL MARKETS-Asian shares advance despite plenty of fears

                                
 * Asia shares gain 1.5 percent on Goldman Sachs' profit
                                
 * Yen falls in a signal of rising risk appetite
                                
 * Asian auto maker shares slide on GM bankruptcy fears
                                
 * Oil below $50/barrel on worries about weaker global
demand
 (Repeats to additional subscribers with no change to text)
                                
 By Rafael Nam
                                
 HONG KONG, April 14 (Reuters) - Asian shares rose to a
six-month high on Tuesday after Goldman Sachs'
stronger-than-expected profit signalled the worst could be
behind for U.S. banks, emboldening investors to chase after
riskier assets.
                                
 Asian credit markets continued to improve, while the yen, a
currency that benefits during fearful times, fell to a
six-month low against the Australian dollar.
                                
 However, there are also plenty of doubts about how much
longer the rally in Asian stock markets can be sustained given
that some analysts believe the full brunt of the deep global
recession has yet to be reflected. [ID:nSP470378]
                                
 Singapore eased monetary policy to effectively devalue its
currency after posting on Tuesday its worst quarterly economic
contraction ever, while a forecast for weaker demand for oil by
the International Energy Agency sent crudes tumbling to below
$50 a barrel. [ID:nSIN444077]  [ID:nLA70157]
                                
 Asian automaker shares slid on fears General Motors Corp
<GM.N> was being pushed into bankruptcy by the U.S. government,
helping send Japan's Nikkei average <.N225> down 1.3 percent.
                                
 "If GM were to go bankrupt, that would raise questions
about what would happen to Japanese auto-parts makers and
Japanese automakers' dealer networks. The implications are
broad," said Takahiko Murai, general manager of equities at
Nozomi Securities.
                                
"Although the financial sector seems to have seen the worst,
a recovery for manufacturers has been slow and worries remain."
                                
 The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> at one point hit its highest since mid-October,
when shares were in the midst of a slide following the collapse
of Lehman Brothers in the previous month.
                                
 The MSCI gauge was up 1.5 percent as of 0240 GMT,as major
markets such as in Hong Kong <.HSI> and Australia <.AXJO>
gained more than 2 percent each after a four-day weekend also
seen in other Asian countries.
                                
 The gains came after Goldman Sachs Group Inc <GS.N> on
Monday posted much higher-than-expected first-quarter profit as
it took more trading risk, and said it plans a $5 billion
common share sale to help pay back government funds.
[ID:nN13387020]
                                
 The results followed Wells Fargo & Co's <WFC.N> surprising
announcement last week that it expects to report a record
first-quarter profit.
                                
 Though Goldman and Wells Fargo did not suffer as much as
other U.S. financial firms, at least their announcements were
seen providing some signs the U.S. banking industry is finally
stabilizing after months of credit-related losses.
                                
 Markets in South Korea <.KS11>, Taiwan <.TWII> and Shanghai
<.SSEC> were largely unchanged on the day.
                                
 NOT SO FAST?
                                
 The willingness to bet on riskier assets was also reflected
in currency markets, where Australian dollar rose as far as
73.49 yen <AUDJPY=R>, its highest since mid-October, before
slipping to 73.07, down 0.1 percent from late U.S. trade.
                                
 Currencies pairs such as the Australian and the New Zealand
dollars against the yen have shown a high positive correlation
with U.S share markets in recent months.
                                
 The U.S. dollar was steady at 100.09 yen <JPY=>, below last
week's six-month high of 101.45 yen, and the euro eased 0.2
percent from late U.S. trade to 133.63 yen <EURJPY=R>.
                                
 The euro also fell 0.3 percent to $1.3325 <EUR=>, after
climbing more than 1 percent in U.S. trade on Monday.
                                
 Plenty of potential pitfalls still lurk ahead, even Asian
shares outside Japan have risen some 10 percent this year.
                                
 Citigroup <C.N>, which had to resort to the U.S. government
for financial aid during the crisis, reports earnings on
Friday, as does U.S. blue chip General Electric <GE.N>.
[RESF/US]
                                
 The fate of U.S. auto makers also remains a concern. The
New York Times reported late on Sunday that the U.S. Treasury
Department was directing GM to lay the groundwork for a
bankruptcy filing should it fail to reach give-back deals with
stakeholders by a deadline set by the Obama administration.
[ID:nN13377256]
                                
 That sent Asian automakers such as Japan's Toyota Motor
Corp <7203.T> and South Korea's Hyundai Motor <005380.KS>
tumbling on Tuesday.
                                
 Regional bond prices are also pushing lower, sending up
yields, given the expectations for a raft of new supply as
governments seek to pay for massive spending projects by
issuing more and more debt.
                                
 Japan's benchmark 10-year yield edged up 1 basis point to
1.460 percent <JP10YTN=JBTC>, hovering near a five-month high
of 1.490 percent hit last week after the government announced
it would issue more than 10 trillion yen of debt in the year to
March 2010 to finance a $154 billion stimulus package that is
its its largest ever. [ID:nT12543]