* Asian stocks boosted by strong U.S. factory data
* Brent crude steadies after topping $100 on Egypt concerns
* Inflationary pressures build in China, South Korea
By Ron Popeski
SINGAPORE, Feb 1 (Reuters) - Asian stocks rose on Tuesday,
led by shares of resource companies, as strong U.S. factory data
and surging commodities prices offset fears that unrest in Egypt
could spread to other parts of the Middle East.
Brent crude oil futures steadied after topping $100
a barrel overnight for the first time since 2008, adding to
concerns of a global fuel price spike even as policymakers in
many emerging economies struggle to contain soaring food prices.
Data released in China showed manufacturers input prices
were rising quickly, keeping pressure on the government to
tackle inflation, while figures from South Korea showed consumer
inflation in January spiked more than expected at the upper end
of the central bank's target.
The euro inched back up near a two-month high after a
jump in euro zone inflation fuelled expectations of an interest
rate increase and as worries about Egyptian unrest abated
slightly. The common currency stood at $1.3725.
Japan's Nikkei share index and the MSCI index of
Asian shares outside of Japan each rose 0.3
percent, with shares of energy and resource companies
outperforming.
Sentiment was supported by U.S. data showing factory
activity in the Midwest hit a 22-1/2 year high in January as
orders surged and employment prospects brightened, providing
further signs that the economy would stay on a solid growth path
this year.
Strong earnings reports and increased mergers and
acquisitions activity also prompted investors to take a more
sanguine view of events in Egypt and return to buying riskier
assets.
The Dow Jones industrial average closed up 0.68
percent overnight, while the Standard & Poor's 500 Index
gained 0.87 percent.
Brent crude hovered just above $100 after soaring as high as
$101.73 overnight, while U.S. crude futures steadied above $92.
Saudi Arabia said OPEC was concerned by unrest in Egypt,
where protesters seeking the removal of President Hosni Mubarak
planned a "million-strong" march on Monday, but saw no need for
an immediate boost in output as there was no oil shortage.
For more stories on the crisis in Egypt, see
Stock markets in Shanghai and Hong Kong were
little changed with investors reluctant to stake out fresh
positions ahead of long Lunar New Year holidays starting later
in the week.
China's official purchasing managers' index fell in January
to its lowest level in five months. Though activity continued to
expand, input prices rose quicly, keeping pressure on Beijing to
tighten policy to contain inflationary pressures.
"This indicates that the economic recovery trend is not yet
clear, and we may see economic growth slow down a bit," Zhang
Liqun, a government researcher, said in a statement accompanying
the release.
In Korea, the finance ministry said consumer inflation was
expected to hover at the 4 percent range in the current quarter
before softening to 3 percent in the second half. The index rose
4.1 percent in January, above a 3.9 percent forecast in a
Reuters poll.
