By Jacqueline Wong
SINGAPORE, April 17 (Reuters) - Japan's Nikkei share
average rose 2 percent on Thursday, buoyed by confidence on
Wall Street after reassuring earnings eclipsed weak data on the
U.S. economy, which pinned the dollar near record lows against
the euro.
Oil <CLc1> hit a new record high above $115 a barrel as the
dollar's weakness and a fall in U.S. crude and gasoline
inventories ahead of the summer driving season drew fund
buying.
Stocks were bouyed by encouraging corporate results from
Intel Corp <INTC.O>, IBM <IBM.N> and JPMorgan Chase & Co
<JPM.N>, which overshadowed mostly gloomy economic news on the
world's largest economy.
A fall in U.S. housing starts to a 17-year low in data on
Wednesday reinforced expectations the Federal Reserve would cut
interest rates again to cushion an economy threatened by
recession.
Japanese stocks climbed, led by high-tech shares such as
TDK Corp <6762.T> and Canon Inc <7751.T>, as the U.S. earnings
reports soothed investors concerned about corporate
profitability.
"Some shares rose in tandem with earnings from their U.S.
peers such as high-tech exporters, which got a boost from IBM's
results," said Soichiro Monji, chief strategist of the equity
management department at Daiwa SB Investments.
The benchmark Nikkei average <> was up more than 2
percent after rising 1.2 percent on Wednesday.
The MSCI's measure of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 1.3 percent, building on Wednesday's more
than 1 percent gain, though the index is still down around 10
percent so far this year.
Markets in Seoul <>, Sydney <> and Taiwan <TWII>
were up around 1 percent, and Singapore <.FTSTI> and Hong Kong
<> posted gains of 2 percent.
International Business Machines Corp reported unexpectedly
strong quarterly results on Wednesday and raised its 2008
outlook, lifting the outlook for technology companies.
Financial stocks also benefitted after solid results from
JPMorgan and Wells Fargo & Co <WFC.N> heartened investors who
had been counting on the big banks to fare better than rivals
in coping with the U.S. mortgage meltdown and global credit
crunch. []
DOLLAR DOWNBEAT
The housing data weighed on the the dollar, holding it near
a record low against the euro on expectations of further rate
cuts, while record high inflation in the euro zone backed views
the European Central Bank will not cut rates soon.
[]
"The dollar continues to be weak, while investors chase
currencies whose yields are not seen falling," said Tsutomu
Soma, senior manager of foreign assets at Okasan Securities.
The Federal Reserve said on Wednesday that economic
conditions were weakening in much of the United States and
price pressures from food, fuel and raw materials were
increasing.
The euro dipped to $1.5935 <EUR=> from around $1.5945 in
late U.S. trade, but stayed within a striking distance of the
all-time high of $1.5980 hit on electronic trading platform EBS
in trading on Wednesday.
The dollar was at 101.90 yen <JPY=>, little changed on the
day.
Japanese government bond futures slid to a six-week low as
the Nikkei share average rallied. A tumble in U.S. Treasuries
also added to selling pressure on JGBs, dealers said.
June 10-year futures <2JGBv1> fell as much as 0.65 point to
138.84, the lowest since early March. The benchmark 10-year
yield <JP10YTN=JBTC> climbed 3 basis points.
U.S. crude futures for May <CLc1> were trading up 3 cents
at $114.96 a barrel by 0400 GMT, after touching an all-time
high of $115.21 earlier, buoyed by data showing a draw in
stocks. []
U.S. crude stocks fell 2.3 million barrels last week,
countering analysts' forecasts for a build, while gasoline
stocks fell 5.5 million barrels.
Other commodities were also buoyant. Shanghai copper rose
1.2 percent, lagging steeper gains in London on Wednesday,
supported by news of a strike at world No. 1 Chilean state
copper producer Codelco. []
U.S. rice futures rose further to set another all-time high
on strong demand and short supplies.
(Editing by Neil Fullick)
