* Risk appetite returning after positive US data and
earnings
* Asia stocks ex Japan up 1.9 pct; energy, resources lead
* U.S. dollar steady; euro hangs on to overnight gains
By Dean Yates
SINGAPORE, Feb 3 (Reuters) - Asian shares powered ahead on
Wednesday with energy and resources stocks leading the way, as
demand for riskier assets increased after Wall Street rallied
on upbeat U.S. earnings and economic data.
European stocks <> were set to gain for a fourth
straight session on strength in Asian and U.S. markets, with
investors awaiting the European Commission's assessment of
Greece's deficit cutting plan and the U.S. ADP employment
report later in the day.
U.S. stock futures <SPc1> also pointed to a slightly firmer
open after Wall Street posted two days of strong gains on
encouraging economic data, which have helped dispel fears in
recent weeks that America's economic recovery may be running
out of steam. []
Rising sales of previously owned U.S. homes and robust
earnings from U.S. bellwethers in the consumer and industrial
sectors pointed to a steady rebound in demand, fuelling gains
of as much as 1.3 percent in key U.S. stock indexes overnight.
But some analysts cautioned against predicting a strong run
in Asian stocks despite the appearance of more appetite for
risk.
While companies overall had been beating earnings
estimates, not a lot of upgrades had been forthcoming, said
Andrew Orchard, strategist at Royal Bank of Scotland in Hong
Kong.
"We see it as a year of volatility, a year of consolidation
with maybe single digit returns between the positive and the
negative," said Orchard.
"Of course between the months you could see a few weeks of
rallies, a few weeks of sustained falls, but overall we think
it won't be too different from where we began the year."
Other analysts have echoed that view, noting that the
global recovery and thus corporate earnings could be choppy.
Japan's Nikkei stock average <> edged up 0.3 percent,
with rises by exporters on the strong U.S. data offsetting
declines for Toyota Motor Corp <7203.T>, whose U.S. sales slid
16 percent after its massive vehicle recall.
Fears of an extended sales slump pushed Toyota down 5.7
percent. Toyota has now lost nearly 20 percent of its market
value since its recall was announced on Jan. 21.
All eyes will be on the automaker when it announces
third-quarter results on Thursday and how the recall will
affect its 2010 earnings forecasts.
Asia Pacific stocks outside Japan as measured by MSCI
<.MIAPJ0000PUS> rose 1.9 percent, climbing further away from
3-month lows. The index is down about 4 percent so far this
year, after a 68 percent surge in 2009.
MSCI's Asia ex-Japan resources and energy indexes both rose
2.5 percent on the back of firmer commodity prices, and were
the biggest contributors to the broader rise in Asian shares.
Shanghai copper rose 2 percent on Wednesday and London
metal extended gains as the latest batch of U.S. data helped
soothe jangled investor nerves.
Top Australian miners had been sold down over the past few
weeks on worries about moves by China, their biggest customer,
to rein in bank lending. But signs of a sustainable global
recovery have lured investors back into resources stocks.
"At the end of the day demand for commodities will remain
reasonably robust. I don't see anything that's happened to
derail that theory," said David Spry, research manager at
broker FW Holst.
Global miner BHP Billiton <BHP.AX> rose 2.6 percent,
helping lift the broader Australian market <> by 0.9
percent.
CURRENCIES
The U.S. dollar steadied after slipping from six-month
highs against a basket of currencies <.DXY> as investors moved
back into higher-yielding, growth-linked currencies as global
markets settled down.
The dollar index <.DXY> <=USD> hovered around the 79 mark,
after retreating from a six-month high of 79.547 struck on Jan.
31.
The Australian dollar <AUD=D4> was at $0.8848, bouncing
from a low of $0.8780 on Tuesday and recovering some of the
losses suffered when the Reserve Bank of Australia left its
benchmark rate unchanged at 3.75 percent, defying expectations
of a rate hike. []
The euro <EUR=> held on to gains made on Tuesday, trading
around $1.3953 in Asia, as investors awaiting the EC's verdict
on Athens' plan to cut its burgeoning deficit.
The EC is widely expected to endorse the proposal, but its
assessment will be closely watched by financial markets as they
weigh Greece's credibility as a debtor.
Greece's fiscal problems have fuelled selling in the euro
this year, with concerns that other countries in the bloc also
face problems.
U.S. crude oil futures <CLc1> were little changed at around
$77.19 a barrel after an industry report showed a bigger than
expected build in U.S. crude oil stockpiles last week.
Gold prices were steady at around $1,114.65 per ounce after
hitting their highest level in almost two weeks the previous
day, with investors cautiously awaiting U.S. jobs data later
this week to gauge prospects for the U.S. economy and the
dollar.
The U.S. ADP employment report due later on Wednesday could
give some clues to the closely watched non-farm payrolls report
on Friday. Policymakers fear consumer demand will not rebound
decisively until unemployment figures begin to come down.
(Editing by Kim Coghill)
