(Updates with latest Asian prices, European stocks pre-open)
By Rafael Nam
HONG KONG, May 15 (Reuters) - Asian shares rose on
Thursday, with some indexes at multi-month highs, after benign
U.S. inflation data that might give the Federal Reserve room to
keep U.S. interest rates low to deal with the downturn in the
economy.
Expectations that technology earnings would prove resilient
also comforted investors. Japan's Sony Corp <6758.T> surged 8.7
percent, a day after it issued a surprisingly upbeat operating
profit forecast despite the challenges posed by a slowing U.S.
economy and a stronger yen.
But European shares were expected to open lower on caution
ahead of a heavy session for earnings.
The dollar slipped slightly but was still not far from a
two-month high against the yen.
Oil prices steadied below recent record levels, with the
halt in the advance easing some of the inflation fears that
have hit Asian stocks this month.
"There is certainly positive momentum in the market," said
Lucinda Chan, division director at Macquarie Equities in
Sydney.
"I think that despite all the uncertainty, these are often
very good times for investments and people are beginning to
sense that mood now," she said.
A rally last month in Asian stocks fizzled when May started
with a surge in oil prices to record highs that reinforced
fears the world economy could face a crippling combination of
high inflation and meagre growth.
But shares have steadily recovered this week, with the MSCI
index for Asian stocks outside Japan <.MIAPJ0000PUS> rising 0.9
percent as of 0600 GMT on Thursday, its biggest daily gain
since May 2.
The index has risen some 18 percent since the mid-March
low, but it is still down about 7 percent this year.
The gains in Asia matched Wall Street's advance <>
after data on Wednesday showed U.S. consumer prices rose 0.2
percent in April, less than expected. []
That is expected to give the Federal Reserve more latitude
to keep U.S. interest rates low at 2 percent as it seeks to
support the economy and calm financial markets.
RESILIENT EARNINGS
Japan's Nikkei share average <> hit a four-month high
at one point and ended up 0.9 percent on growing optimism about
earnings and gains in exporters such as Honda Motor Co Ltd
<7267.T>, which benefit from a softer yen.
Sony posted a surprise quarterly loss on Wednesday due to
the fall in value of some securities it holds, but its
operating profit forecast for this financial year was rosier
than expected as it aims to boost TV sales and end losses on
the PlayStation 3. []
The technology sector has been among the bright spots in
the market recovery seen over the past couple of months, amid
expectations sales for items such as mobile phones will be
resilient.
South Korea's KOSPI <> index jumped 2.3 percent to its
highest close since early January, as LG Electronics Inc
<066570.KS> and Samsung Electronics Co Ltd <005930.KS> hit
record highs due to their earnings prospects.
Taiwan's technology-heavy index <> rose 1.5 percent to
a six-month closing high, while Australian stocks <>
gained 0.4 percent after Commonwealth Bank of Australia
<CBA.AX> gave a reassuring trading update and construction
group Leighton Holdings <LEI.AX> [] gave an upbeat
outlook.
Stocks in India <> gained 1.7 percent, but Hong Kong
<> shares proved an exception, falling 0.5 percent.
The dollar dipped 0.1 percent from its level in late U.S.
trade on Wednesday to 104.88 yen <JPY>.
Earlier, it had clawed back towards the peak of around
105.70 yen seen this month, which was its highest since late
February, as the tame U.S. price data helped ease fears that
high inflation could jeopardise efforts to kick-start the
economy.
Some of the inflation concerns also eased after oil prices
retreated from the record $126.98 a barrel hit on Tuesday after
assurances by Iran it had no plans to cut exports and a U.S.
inventory report that showed a rise in supply of distillates.
U.S. crude futures <CLc1> were steady at $124.42 in Asian
trade.
