* Asian stocks at 2-yr high after U.S. data, Europe just up
* Nikkei closes up 1.39 percent
* Dollar at 5-month low vs euro, dips vs Asian currencies
By Ron Popeski
SINGAPORE, Sept 27 (Reuters) - Asian stocks climbed on
Monday to their highest in more than two years in response to
encouraging U.S. economic data while the dollar recovered some
ground after plumbing five-month lows against the euro.
European shares edged higher, after they rose sharply in
lock-step with Wall Street in response to a rise in U.S.
business spending. Investors saw the numbers as a sign that the
world's biggest economy continued to recover, though analysts
said high unemployment and sluggish housing market suggested
the Federal Reserve might further resort to quantitative easing
to give the economy a leg up.
Such expectations weighed on the dollar. It lost ground to
several currencies, but edged up against the yen on speculation
that Tokyo may sell the Japanese currency again to curb its
gains.
The index of Asian stocks ex-Japan <.MIAPJ0000PUS> climbed
1.25 percent, hitting its highest point since June 2008. In
Tokyo, the benchmark Nikkei <N.225> rose 1.39 percent, its
biggest one-day gain in a week, buoyed by exporters after the
Wall Street jump. But traders said further gains would be
contained by the yen's enduring strength against the dollar.
Shares of consumer lenders plunged after media said
struggling Takefuji Corp <8564.T. was preparing to file for
bankruptcy protection. [].
In Europe, the FTSEurofirst 300 <> index of top
European shares was up 0.4 percent after spiking up 1.2 percent
on Friday. Food and beverage shares were up on news Unilever
<ULVR.L> is to acquire a U.S. company for $3.7 billion in
cash.
In Asia, Seoul stocks <> closed 0.8 percent higher with
Hyundai Motor, South Korea's top carmaker steady after
announcing a recall of 139,500 Sonata sedans sold in the United
States.
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 rose 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 regained some lost ground against the
yen but was sharply down against other Asian currencies.
With the end of Japan's fiscal first half approaching, the
dollar was expected by some to see selling pressure against the
yen, although others said this could be countered by yen sales
related to the launch of Japanese mutual funds on Monday.
"Since this is the week when the fiscal half-year comes to
an end, I think there will be a decent amount of (dollar
selling)," said a senior trader at a major Japanese bank.
"But because we are in such a situation, that also means
that wariness toward intervention is strong."
He doubted the dollar would fall rapidly even if stop-loss
sell orders near 84.00 yen were triggered, adding: "It's scary
to sell the downside."
The dollar held steady at 84.30 yen <JPY=> above Friday's
low of 84.12.
It was also more than a yen above the 15-year low of 82.87
hit shortly before Japanese authorities acted nearly two weeks
ago to sell yen for the first time in six years. A estimated
total of 2 trillion yen ($23.7 billion) was sold, the largest
single-day yen selling intervention.
But the dollar dropped to an eight-month low against a
basket of currencies as speculation of more U.S. quantitative
easing kept it under pressure.
The euro <EUR=> stood at $1.3468 on Monday and faced
resistance at $1.35.1. It was little changed against the yen,
against which it has risen more than 6 percent this month.
Oil was steady, trading close to a two-week high near $77
reached earlier as energy and commodities regained the flavour
of investors with a weaker dollar.
(Editing by Tomasz Janowski)
