* Positive U.S., Japan economic readings support equities
* Bond yields move against yen, favour U.S. dollar
* S&P 500's 200-day moving average in plain sight
* China trade data bolsters commodity currencies
By Kevin Plumberg
HONG KONG, Sept 10 (Reuters) - Asian stocks rose to a
four-month high on Friday as some investors were inspired by
positive U.S. and Japanese economic data to pick out bargains,
with the shift to riskier assets weighing on the yen.
The yen's yield disadvantage has also been growing this
week, following upside surprises in U.S. and Australian
economic figures, handing dealers an incentive to join any
selloffs of the Japanese currency.
"The market is on a relief rally as key U.S. data, such as
jobs and trade from the U.S., came out better than expected,"
said Hong Soon-pyo, an analyst at Daishin Securities in Seoul.
"The data gave the market more assurance about where the
global economy is headed," Hong said.
U.S. stocks posted modest gains on Thursday as recent data
eased concerns that the U.S. economy might be sliding back into
recession, although sentiment was fragile as investors fretted
over the health of European banks. []
An upward revision to Japan's second-quarter GDP, though
widely expected, added to investor confidence in Asia, market
players said. []
Also on Friday, China reported stronger-than-expected
import growth in August, indicating a possible rebound in
domestic demand, and a 34.4 percent rise in exports
year-on-year.
The import data reduced the politically sensitive trade
surplus ahead of U.S. Congressional hearings next week on
whether to punish Beijing for what many in Washington see as an
unfairly undervalued yuan. []
The Chinese data also bolstered currencies of major
commodity exporters such as Australia, helping the Aussie
dollar <AUD=> hold near a four-month high of $0.9227. []
Still, risk taking has not become overwhelming by any
stretch. Economists keep ratcheting down U.S. economic
forecasts, corporate executives sound cautious and some of
Europe's banks may need more capital soon.
Tokyo's Nikkei share average rose 2 percent <>, with
exporter Canon Inc the biggest gainer on the day, up 5.9
percent. The index is on its way to its biggest week increase
since the week of July 11.
The MSCI index of Asia Pacific stocks outside Japan rose
0.4 percent <.MIAPJ0000PUS> to the highest since May 4, with
the technology sector leading the pack.
The index is up nearly 11 percent in the quarter, on track
for the largest gain since the third quarter of 2009.
The U.S. S&P 500 index overnight <.SPX> rose 0.5 percent
and broke above its 100-day moving average, a medium-term
obstacle, revealing its 200-day moving average only 1 percent
away as the next significant barrier.
YEN
The yen suffered from traders closing out of short-term
bets on the currency and hastening its decline.
The U.S. dollar rose 0.5 percent to 84.23 yen, pulling
further from a 15-year low around 83.32 yen hit on Wednesday.
The U.S. dollar index, which measures its trade-weighted
value compared with six other major currencies, rose 0.2
percent <.DXY>, climbing above its 55-day moving average, a
technical obstacle the index has struggled to overcome in the
last three weeks.
Investors betting on the yen have grown concerned about the
moves in bond spreads that have gone against the Japanese
currency. Overnight a lower-than-expected reading of U.S.
initial jobless claims pushed up Treasury yields.
The spread of U.S. 10-year Treasury yields over Japan has
widened 6 basis points this week, the biggest weekly gain since
July 2010. Australian 2-year yields have shot up 22 basis
points above same maturity Japanese yields this week, the
largest increase since March 2010.
"Of course this could prove to be a false break
(particularly given doubts surrounding the fall in initial
jobless claims) but we would note U.S. yields appear to have
been basing for a number of weeks now," Jonathan Cavenagh,
strategist with Westpac in Sydney, said in a note.
"Hence if the yield spread continues to move in favour of
the USD then USD/JPY is a good buy at current levels."
U.S. crude oil futures <CLc1> jumped more than 50 cents to
near $75 a barrel after a leak forced the shut down of the
biggest pipeline supplying Canadian oil to refineries in the
Midwest.
Gold <XAU=> fell $2.52 an ounce to $1,245.75 an ounce,
holding near a 1-week low hit the previous session.
(Additional reporting by Jungyoun Park in SEOUL)
(Editing by Kim Coghill)
