* Asian shares up on global econ hopes; resource stocks
lead
* All eyes on U.S. May monthly job data
* Oil prices extend gains after hitting 7-mth high on Thurs
* Safe-haven dollar dips; sterling falters on PM Brown
woes
(Updates with latest Asian prices, European open)
By Rafael Nam
HONG KONG, June 5 (Reuters) - Asian shares, oil and
higher-yielding currencies rose on Friday as positive signals
from the latest U.S. weekly job data sparked tentative optimism
ahead of the crucial monthly employment report.
A surge in oil prices to seven-month highs bolstered
resource stocks, while Sydney-listed shares of Rio Tinto
<RIO.L> and BHP Billiton <BLT.L> surged after they announced an
agreement to combine their Australian iron ore mines and Rio
announced a $15.2 billion rights issue. []
European shares were set to gain, led by resource stocks,
though sterling remained under pressure following the
resignation of a third senior cabinet minister.
U.S. nonfarm payrolls data due later in the day is expected
to show employers cut 520,000 jobs in May, lower than 539,000
in April, and the unemployment rate is forecast to rise to 9.2
percent from 8.9 percent in April.
A much worse-than-expected report could dampen expectations
that the worst is over for the global economy, which have sent
stock markets from Seoul to London surging since early March.
It could also serve as a reminder of the bearish evidence
that has been downplayed so far, such as evidence that American
consumers, the lynchpin of global exports, are cutting
spending.
"If the numbers are better than expected investors will get
confirmation that the economy's really improving but there's
worry about what will happen if the figures are worse than
consensus," said Yumi Nishimura, a deputy general manager of
the investment advisory section at Daiwa Securities SMBC.
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 0.8 percent as of 0150 GMT, rebounding
from a 1.9 percent fall on Thursday. The index looked set for a
rise of close to 3 percent on the week, which would take its
gains to around 63 percent from lows hit in early March.
Resource shares gained after oil prices surged on hopes
that the global recession had bottomed out. Japanese oil and
gas field developer Inpex <1605.T> rose 4.4 percent.
Jumps in Australian-listed shares of BHP Billiton <BHP.AX>
and Rio Tinto <RIO.AX> helped push up Australia's main index
<> nearly 1 percent. []
The deal effectively scuppered a $19.5 billion bid by
China's Chinalco [] to secure a stake in debt-laden
Rio.
Japan's Nikkei average <> rose 0.8 percent, while
markets in Seoul <> gained 1 percent.
Elsewhere, indexes in Shanghai <> and Singapore
<.FTSTI> posted modest gains, though shares in Taiwan <>
and Hong Kong <> fell.
Gains in Asian shares were also underpinned by data on
Thursday showing fewer U.S. workers filed new claims for
jobless benefits for a third straight week last week and
productivity rose faster than expected in the first quarter.
[]
RISKY BUSINESS
Still, not all signals have been positive.
Most U.S. retailers posted disappointing May sales as
recession-weary shoppers cut spending, while in another
worrisome sign, U.S. mortgage rates surged to their highest in
almost six months in the latest week, despite government
efforts to keep rates at low levels. [] and
[]
Central banks worldwide still remain cautious. The Bank of
Japan is considering upgrading its views on the economy,
sources at the central bank told Reuters, but even then they
said the upgrade will be a shift to less pessimism rather than
a swing to optimism. []
The European Central Bank on Thursday slashed forecasts for
the 16-country economy this year and said growth would not
return until mid-2010, after keeping interest rates on hold at
a record low of 1 percent. []
The Bank of England also left interest rates steady, at 0.5
percent, on Thursday. []
Riskier assets that depend on improving global demand still
gained nonetheless.
U.S. crude futures <CLc1> rose 59 cents to $69.37 a barrel,
building on a rally of more than 4 percent on Thursday that saw
prices hit their highest since early November.
Also helping drive up oil was Goldman Sachs <GS.N> lifting
its end of 2009 oil price forecast to $85 from $65 and
introducing a new end-2010 forecast of $95. []
In currency markets, investors switched to higher-yielding
plays, though moves were tempered ahead of the U.S. jobs data.
The dollar index <.DXY>, a gauge of the greenback's
performance against a basket of six major currencies, fell 0.1
percent to 79.401.
The euro edged up 0.1 percent from late U.S. trade to
$1.4197 <EUR=>, crawling towards a five-month peak of $1.4339
hit on EBS earlier this week after the ECB kept rates on hold,
and rose 0.4 percent to 137.31 yen <EURJPY=R> against the
Japanese currency.
Commodity-linked currencies held firm. The Australian
dollar rose 0.2 percent to $0.8038 <AUD=>, not too far from an
eight-month high of $0.8265 hit on Wednesday.
After sharp falls on Thursday following the resignation of
a third senior minister from the government, sterling fell 0.1
percent to $1.6140 <GBP=D4>.
(Editing by Kazunori Takada)
