GLOBAL MARKETS-Euro rises on Japan euro bond plan; stocks mixed

                                
 * Japanese plan to buy euro bonds lifts euro briefly
                                
 * Gold consolidates gains on euro zone fears
                                
 * Japan's Nikkei stock index slips 0.2 percent

                                
 By Nick Macfie	
                                
 SINGAPORE, Jan 11 (Reuters) - The euro jumped briefly on 
Tuesday after Japan said it would buy euro bonds to boost 
confidence in the European Financial Stability Facility amid 
fears that Portugal may become the next euro zone member to 
seek a bailout.	
                                
 Japanese Finance Minister Yoshihiko Noda said Tokyo would 
buy about 20 percent of bonds the euro zone plans to jointly 
issue later this month. [ID:nTKF107154]	
                                
 The euro rose as high as $1.2992 on trading 
platform EBS from around $1.2925 in early Asian trade, but 
quickly pared its gains after Japan said it would buy the euro 
bonds using its existing forex reserves, not with new currency 
purchases. 	
                                
 The single currency stood around $1.2955 at 0220 GMT, off 
the day's low but little changed form late levels in New York.	
                                
 "We see a further escalation in the European debt crisis, 
and a substantially weaker euro," said Stephen Jen, managing 
director of macroeconomics and currencies at BlueGold Capital 
Management LLP in London, on Monday.	
                                
 "There is no silver bullet because the underlying problems 
are 'knotted'." 	
                                
 Tokyo's benchmark Nikkei index slid 0.23 percent 
on worries about the euro zone and overnight weakness on Wall 
Street, after hitting an eight-month closing high on Friday. 
Tokyo markets were closed on Monday for a public holiday. The 
broader Topix index was slightly higher.	
                                
 The MSCI index of Asia Pacific stocks ex-Japan 
 was off 0.14 percent. Shares in Hong Kong, 
Taiwan and New Zealand were slightly higher.	
                                
 Gold was steady on Tuesday while anxiety about Portugal's 
debt lingered, maintaining bullion's appeal as a safety net. A 
softer dollar typically helps gold because it makes the metal 
more affordable for holders of the euro and other currencies.   
  Spot gold gained 20 cents to $1,374.60 an ounce.	
                                
Portugal is widely seen by investors as next in line in the 
euro zone to need a bailout after Greece and Ireland, but the 
government has repeatedly denied that it will seek foreign 
financing.	
                                
 The European Central Bank threw Lisbon a temporary 
lifeline on Monday by buying some of its bonds, traders said. 
[ID:nLDE7090U2]	
                                
 The Dow Jones industrial average lost 0.3 percent 
on Monday, while the Standard & Poor's 500 Index edged 
down 0.1 percent. The Nasdaq Composite Index gained 
0.2 percent. 
                                
 U.S. crude prices climbed further above $89 on Tuesday as 
a key Alaskan oil pipeline remained shut, cutting total crude 
output by nearly 12 percent in the world's largest oil user.	
                                
 (Editing by Kim Coghill)	
                                
 
	
 
                                
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