* Asian stocks at two-year high after U.S. data cheer
* Nikkei rises 1.4 percent
* Dollar at 5-month low vs euro, dips vs Asian currencies
By Ron Popeski
SINGAPORE, Sept 27 (Reuters) - Asian stocks rose on Monday
to their highest in more than two years in response to optimism
on the U.S. economy, while the dollar dipped to five-month lows
against the euro.
Markets climbed broadly, but analysts said that data
showing increased U.S. business spending, which prompted a rise
on Wall Street last Friday, were far from unequivocal.
Suggestions that the Federal Reserve might further resort
to quantitative easing to stimulate the economy kept the dollar
in check. It lost ground throughout the region.
The index of Asian stocks ex-Japan <.MIAPJ0000PUS> climbed
1.05 percent, hitting its highest point since June 2008. In
Tokyo, the benchmark Nikkei <N.225> rose 1.4 percent, buoyed by
exporters after the Wall Street jump, but traders said gains
were capped by the yen's enduring strength.
Shares of consumer lenders plunged after media said
struggling Takefuji Corp <8564.T> was preparing for bankruptcy
protection. Analysts discounted fears that this would seriously
affect the Nikkei but also said any rises would also be
limited.
"Wall Street's rise has provided a bit of a boost but gains
on the U.S. data are mainly because the figures weren't quite
as bad as expected, not that they were really good," said
Takashi Ushio, head of the investment strategy division at
Marusan Securities. "So gains on this alone will be limited."
Seoul shares <KS11> also posted gains, though these were
mitigated by pressure on Hyundai Motor, South Korea's top
carmaker, which announced it was recalling some 139,500 Sonata
sedans sold in the United States. Hyundai declined 2.17
percent.
RISE IN BUSINESS SPENDING
Economic reports on U.S. durable goods orders and home
sales were mixed on Friday, but traders focused on a rise in
business spending in August as the latest sign of a firmer
recovery.
Wall Street gained almost 2 percent, putting U.S. stocks on
course for four weeks of gains.
But subdued home sales and signs that manufacturing growth
was slowing reinforced the view that the Fed may provide more
monetary support to help the economy.
On Monday, the dollar was subject to further pressure.
It hovered near five-month lows to the euro and eight-month
lows against a basket of currencies, pausing after steep losses
last week and keeping the euro from pushing to new highs
against $1.3500 <EUR=>.
The dollar, quoted at 84.24 yen at 0230 GMT, was hurt on
Friday by stronger-than-expected data in Europe and
expectations of further easing by the Federal Reserve.
One trader at a Japanese bank said dollar/yen would be
caught between caution over another intervention by Japanese
authorities and possible dollar selling by Japanese exporters
ahead of the end of the first half of Japan's fiscal year.
"But even if stops near 84.00 yen are hit, I don't think
we're in a market where the dollar will keep falling rapidly,"
he said. "It's scary to sell the downside."
Japan intervened on Sept. 15 minutes after the dollar hit a
15-year low of 82.87 yen, selling an estimated 2 trillion yen
($23.7 billion), its largest single-day yen selling
intervention.
The euro stood at 1.3466 after rising as far as $1.3496 on
Friday, its strongest since late April.
Oil on Monday climbed to near $77, the highest level since
mid-September, extending last week's rally as energy and
commodities regain the favour of investors with a weaker dollar
and resurfacing risk appetite.
(Editing by Tomasz Janowski)
