* Asia stocks edge up 0.4 pct, tech gives a boost
* Yen holds gains as higher-yielding currencies cut
* JGBs extend long rally, yields pushed to 3-mth low
By Eric Burroughs
HONG KONG, July 7 (Reuters) - Asian stocks edged up
slightly on Tuesday but struggled after a slide the previous
day, while the yen held gains against higher-yielding
currencies as investors doubt the speed of the global economy's
recovery.
A bleak U.S. jobs report last week has prompted portfolio
managers to reassess how quickly economies around the world can
return to growth after the deep recession, spurring a pull-back
in shares and currencies such as the Australian dollar.
"Optimism previously shown towards the economy is being
scaled back and this is putting a lid on the market. Last
week's U.S. employment numbers were a hint that perhaps the
market had become over-optimistic," said Takahiko Murai,
general manager of equities at Nozomi Securities in Tokyo.
But regional markets have held up as some early news on
quarterly earnings showed technology companies faring well.
Taiwan's benchmark TAIEX index <> gained 1 percent,
thanks to a 3 percent jump in shares of smartphone maker HTC
<2498.TW> after the company reported a better-than-expected
second-quarter profit.
South Korea's KOSPI <> edged up 0.2 percent a day
after Samsung Electronics <005930.KS>, the world's top maker of
memory chips and flat screen TVs, forecast second-quarter
earnings well above forecasts, giving the broader market a
boost.
The yen held near a five-week peak against sterling and the
New Zealand dollar as market players have cut holdings of
currencies that have surged along with stocks. U.S. crude oil
prices were up 15 cents a barrel at $64.20 <CLc1> but hovered
near a five-week low.
In Japan, investors have poured cash into government bonds
on bets that the economy's recovery from recession will be an
extended one that could lead to a long stretch of deflation,
pushing benchmark yields to a three-month low.
The MSCI index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> edged up 0.4 percent, with technology shares
the biggest gainers.
Japan's Nikkei share average <> dipped 0.2 percent,
with exporters under pressure from a firmer yen, while the
Shanghai Composite <> shed 0.5 percent after having
reached a 13-month high the previous day.
China's economic resilience and splurge of bank lending to
boost growth has fuelled the 70 percent rally in the Shanghai
Composite so far this year.
Investors were also watching whether Indian markets would
extend their slide from Monday after the government's
big-spending budget for the coming fiscal year was viewed as
disappointing, sparking a 6 percent drop in the SENSEX <>
and a spike in bond yields. []
DOLLAR STEADIES
The dollar was mostly steady and has held its ground in the
past few weeks as riskier assets have stumbled, with the U.S.
currency favoured as a safe haven when market players strike a
cautious footing.
The dollar was little changed at 95.36 yen <JPY=>, while
the euro drifted sideways at $1.3960 <EUR=>.
The New Zealand dollar, which has surged along with its
Australian counterpart despite a much weaker economy and record
low interest rates, was steady at 60.60 yen <NZDJPY=R> after
hitting a five-week low of 59.30 yen on Monday.
The Australian dollar, the biggest gainer among major
currencies this year as investors crept back into
higher-yielding, higher-risk assets, was steady at $0.7960
<AUD=D4> just before the Reserve Bank of Australia's monthly
policy meeting.
The RBA was widely expected to keep rates on hold at 3
percent, among the highest short-term rates of developed
economies and one of the reasons for the Aussie's nearly 13
percent surge against the U.S. dollar this year.
In government bonds, longer-term Japanese government bonds
extended their winning streak that has pushed yields sharply
lower.
The 10-year yield <JP10YTN=JBTC> was flat at 1.300 percent
after falling to 1.295 percent, the lowest since late March.
The drop in benchmark JGB yields was partly driven by
investors selling short-term notes for longer-term bonds,
unwinding bets that the yield curve would steepen as short-term
yields have become less attractive.
Two-year JGBs <JP2YTN=JBTC> were up half a basis point at
0.260 percent but were near their lowest levels in three
years.
(Additional reporting by Shinichi Saoshiro in Tokyo)
(Editing by Kim Coghill)
