* Asian shares gain in first trading day of 2009
* U.S. Treasuries fall as risk aversion wanes
* Oil slumps more than $2 after Wednesday's rally
* Euro, some emerging currencies hit by growth worries
* European stocks seen opening little changed
By Rafael Nam
HONG KONG, Jan 2 (Reuters) - Asian shares rallied on
Friday, starting the new year on hopes the worst of the global
crisis may be over after a brutal 2008, while safe-havens such
as U.S. Treasuries fell as investors showed signs of taking on
risk.
Still, data on Friday signalled a tough road ahead for
large parts of the world given that major economies from the
United States to Japan are stuck in recession after
experiencing the worst financial crisis in generations.
The euro and the South Korean won fell on concerns about
weakening economic growth, while crude oil prices tumbled more
than $2 a barrel, cutting into a rally of about 14 percent on
the final trading day of 2008.
European stocks were seen little changed on Friday in their
first session of the new year. Euro zone and U.S. manufacturing
activity data for December is due later in the day.
A recovery in global markets will hinge on whether
investors become willing to wean themselves off assets seen as
safer, such as U.S. Treasuries, which have outperformed despite
offering the lowest yields in decades.
Policy makers have slashed interest rates and pledged to
spend to try to fight off the economic slowdown, which
supported sentiment on Friday.
"General hopes about the new year, such as that the real
effects of global governments' economic stimulus measures will
be felt, are boosting stocks," said Yun Lee, a market analyst
at Woori Investment & Securities in Seoul.
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 0.7 percent as of 0645 GMT.
The index had slumped 53 percent in 2008, its worst year on
record, though it has now gained more than 25 percent since
hitting a five-year low in late November.
Hong Kong shares <> rose 3 percent. Wireless carriers
such as China Mobile <0941.HK> <CHL.N> jumped after China on
Wednesday approved the issuance of long-awaited licenses for
next generation mobile networks, opening the door to some $41
billion in spending for equipment [].
Stocks in South Korea <> gained 2.9 percent, helped by
a 11.4 percent jump in LG Display <034220.KS> on hopes that
prices for flat screens could bottom out earlier than expected
as producers cut output. []
Singapore's main index <.FTSTI> advanced 2.5 percent, while
markets in India <> and Taiwan <> posted more modest
gains. Shares in Australia <> fell 0.2 percent.
Financial markets in Japan and China were closed for New
Year holidays.
ECONOMIC WORRIES REMAIN
The gains in Asian shares came despite a continued raft of
bleak economic data, as consumers worldwide pare their spending
and companies reduce output, setting off fears about jobs and
deflation.
South Korea said on Friday exports tumbled 17.4 percent in
the year to December, while data showed a recession in
Singapore deepened in the fourth quarter leading the government
to cut its growth forecast for 2009. [] and
[]
Still, financial markets showed signs that investors were
willing to add more risk, as reflected by a fall in U.S.
Treasuries in Asia.
Benchmark 10-year notes <US10YT=RR> fell 10/32 to yield
2.251 percent. That meant the yield rose 5 basis points from
U.S. trade on Wednesday, and 20 basis points over the past two
trading days, recovering after touching five-decade lows last
month.
Two-year notes <US2YT=RR> were flat to yield 0.768 percent.
Considerable uncertainty remains in financial markets about
how effective stimulus measures and low interest rates will be
in stimulating global growth.
U.S. President-elect Barack Obama, who takes office this
month, has pledged to deliver a stimulus package that aims to
generate 3 million new jobs. It may be worth $775 billion or
more.
EURO FALLS
The euro fell on expectations that the euro-zone economy
will suffer for longer because of the European Central Bank's
reluctance to cut interest rates as aggressively as other
central banks.
It slipped 0.8 percent from late U.S. trade on Wednesday to
$1.3855 <EUR=>. Against sterling, it dropped 1.3 percent to
94.525 pence <EURGBP=D4>.
The South Korean won <KRW=> meanwhile tumbled more than 5
percent to 1,330.9 per dollar after the country's weak trade
numbers, while the Singapore dollar <SGD=> fell as far as
1.4557 per U.S. dollar, down almost 1.5 percent from
Wednesday's close.
Concerns over global demand hit oil prices <CLc1>, which
slumped $2.06 to $42.54, after crude on Wednesday surged $5.57
when a slowdown in U.S. refinery activity had sparked fears of
tightening fuel supply this winter.
Gold gave up some of its early gains on Friday, but
analysts said the dollar's recent weakness and expectations of
more grim U.S. economic data could still ignite safe-haven
buying.
Gold was last trading at $871.85 <XAU=> an ounce, down $8.3
from its notional New York close on Wednesday.
(Additional reporting by Jungyoun Park in SEOUL; editing by
Dhara Ranasinghe)
