RPT-GLOBAL MARKETS-Bulls lift Asia stocks near 11-month highs

                                
 * Telecoms, materials sought after; developed over
developing
                                
 * Australia dollar climbs as bets on rate hikes increase
                                
 * Sterling steady ahead of Bank of England policy review
 (Repeats item to more subscribers)
                                
 By Kevin Plumberg
                                
 HONG KONG, Aug 6 (Reuters) - Asian stocks edged up close to
11-month highs on Thursday on strength in resource-related
shares, while the Australian dollar gained after a surprise
rise in employment prompted increased bets on higher interest
rates.
                                
 Major European stock futures rose slightly <STXEc1> as more
company results came pouring in ahead of euro zone and British
central bank meetings.
                                
 Sterling was flat ahead of a policy meeting of the Bank of
England, at which central bankers will decide whether to boost
planned asset purchases to encourage growth. [ID:nL5333957]
                                
 Developed markets were favoured during the Asian session,
with Japanese and Australian stocks posting gains of more than
1 percent, while Chinese shares in Shanghai dropped on
nervousness monetary authorities will take more steps to curb
lending.
                                
 Japan's Nikkei share average <.N225> rose 1.3 percent, led
by Honda Motor <7267.T> after a report the world's top
motorcycle maker will import bikes from Thailand to sell in
Japan to cut costs.
                                
 Camera maker Nikon Corp <7731.T> saw its shares plunge 10
percent and was the biggest drag on the Nikkei, after it warned
of a loss that would be more than double its initial forecast.
[ID:nT291783]
                                
 Stocks in Shanghai <.SSEC> dropped as much as 3 percent but
then cut their losses to 1.6 percent though the index is still
up some 83 percent on the year.
                                
 China's central bank late on Wednesday repeated that
monetary policy will remain growth friendly, sticking with its
view that the recovery was not solid, though it said it would
use market tools to fine tune policy after unprecedented loan
growth in the first six months of the year. [ID:nPEK368445]
                                
 That sparked fears of increasing action by authorities to
rein in abundant liquidity.
                                
 "Nearly every sector is overvalued and the whole market is
very much excessively valued," said Qian Qimin, deputy research
head at Shenyin & Wanguo Securities in Shanghai.
                                
 "The market is tired. Investors are tired. Any slight
negative news can now turn into the last straw to push down the
market, not because the central bank is changing its policy,"
Qian said.
                                
 STILL CAUTIOUS
                                
 The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> climbed 0.7 percent, thanks to strength in
telecommunications and materials stocks.
                                
 Technology and consumer-related stocks, which have been
leaders throughout the rally, were the only sectors down on the
day. That suggested profit taking was on the minds of investors
after the index hit 11-month highs on Tuesday.
                                
 In the United States, network equipment maker Cisco Systems
Inc <CSCO.O> chief executive John Chambers sounded a cautious
note on recovery prospects despite giving a revenue outlook
that was in line with Wall Street's expectations.
                                
 "If we continue to see these positive trends for the next
one to two quarters, we believe there is a good chance we will
look back and see that the tipping point occurred in Q4,"
Chambers said.
                                
  "While this is a very important trend, I would want to see
the sequential trends continue for several more quarters before
we'd be comfortable with saying that we are returning to normal
business momentum," he told analysts on a call. [ID:nN03535216]
                                
 In currency markets, the Australian dollar remained smack
within an uptrend, rising 0.5 percent to US$0.8450 <AUD=>.
                                
 Australian employment increased by 32,200 jobs in July,
surpassing forecasts for a 20,000 drop. That fueled
expectations that Australia's central bank will be the first
among the Group of 10 countries to raise interest rates.
[ID:nSYD367356]
                                
 The Australian 1-year overnight indexed swap <AUD1YOIS=>,
basically an instrument to speculate on where interest rates
are headed, rose 11 basis points. Dealers priced in 71 basis
points worth of tightening over the next 12 months.
                                
 U.S. oil for September delivery slipped 0.3 percent to
$71.77 a barrel <CLc1> as fears lingered about the face of the
U.S. recovery following weak services-sector data. Still, $72
remains an enticing obstacle for traders after the contract
closed at $71.97 overnight.
                                
 A gauge released on Wednesday of the U.S. services sector,
the biggest part of the economy, surprisingly reflected
weakness in July, contrasting with upbeat manufacturing and
investment readings.
 (Additional reporting by Lu Jianxin in Shanghai; Editing by
Neil Fullick)