* Commodities, Apple results boost shares across the board
* Oil tops $80, gold nears record high on weak US dollar
* FX carry trades appear back in vogue
By Kevin Plumberg
HONG KONG, Oct 20 (Reuters) - Asian stocks rose to a
14-month high on Tuesday after strong sales numbers from Apple
Inc suggested U.S. consumers are spending more and as the weak
U.S. dollar kept pushing commodity prices higher.
Oil topped $80 a barrel and gold neared a record high, with
the dollar locked in a steep downtrend as investors searched
for higher returns elsewhere.
Portfolio flows into emerging market assets have been
torrential, leading Brazil to slap a 2 percent tax on foreign
investment in domestic stocks and bonds to try to cool its real
currency, which has surged 36 percent this year.
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Japan's Nikkei share average rose 1.1 percent, supported
largely by a mixture of stocks in the technology sector.
"These (U.S.) results are inevitably providing a bit of a
boost, particularly for parts suppliers and chip makers, while
a whole range of China-linked shares are also doing well," said
Koichi Ogawa, chief portfolio manager at Daiwa SB Investments
in Tokyo.
Shares of Komatsu Ltd <6301.T>, the world's second-biggest
maker of construction equipment, rose 2 percent after a report
the company had made 10 billion yen in operating profit for the
July-September quarter on demand from China and other
developing markets.
The benchmark MSCI index of Asia-Pacific shares outside
Japan <.MIAPJ0000PUS> rose more than 1 percent.
U.S. stock futures <SPc1> rose 0.4 percent after profits at
Apple Inc <AAPL.O>, released after the closing bell, exceeded
market forecasts on record quarterly sales of iPhones and Macs.
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Shares of Apple jumped 7.5 percent in after-hours trading
to a record high. During the regular session, U.S. stocks
gained about 1 percent to fresh 12-month highs as investors
cheered a wave of solid quarterly earnings. []
Investors have been anxiously awaiting earnings season for
signs that consumer demand is improving, which would reinforce
the chances of a sustainable global economic recovery and give
new legs to a seven-month equity rally which has been showing
signs of flagging.
Company earnings in the last quarter were largely bolstered
by cost cutting as opposed to a true pick-up in demand for
their products.
DOLLAR WEAKNESS
The dollar fell to its lowest in 14 months against a basket
of currencies on persisting views that policy makers in the
United States will stick to a low interest rate policy for some
time while they await signs that an economic recovery is on
solid footing.
The dollar index, a gauge of its performance against six
major currencies, fell as far as 75.150 <.DXY>, its lowest
since August last year.
The euro was up 0.1 percent at $1.4986 <EUR=> but was
meeting selling pressure by dealers protecting positions at the
round figure of $1.50.
By contrast, minutes from a Reserve Bank of Australia
policy meeting earlier this month pointed to more interest rate
increases ahead and said the stronger Australian dollar was a
sign of improving sentiment that would help contain inflation.
"There are no warning signs for AUD bulls," said Patrick
Bennett, Asia foreign exchange and rates strategist with
Societe Generale in Hong Kong, in a note.
The Australian dollar briefly rose above US$0.93 to the
highest in 14 months before easing to $0.9293 <AUD=>, even on
the day.
The benchmark Australian stocks index <AXJO> was up 1.6
percent and outperformed the region, helped by mining stocks
and hedge funds scooping up shares of banks that can take
advantage of the strong currency.
"This currency carry trade in banks has taken the major
banking sector to a premium to the broader market. I think
that's ambitious," Southern Cross' head of institutional
dealing, Charlie Aitken, said in a note.
U.S. crude for November delivery <CLc1> rose more than half
a percent to a one-year high of $80.05 a barrel <CLc1>, its
strongest since Oct 14, underpinned by the ailing dollar,
global recovery hopes and bullishness in equity markets.
Gold also firmed on dollar weakness, climbing 0.3 percent
to $1,066.60 an ounce <XAU=> in the spot market, just shy of a
record $1,070.40 hit last week.
(Editing by Kim Coghill)
