* Wall Street rebound buoys sentiment, Asia stocks up 1.2
pct
* Stretched trades trimmed, helping cyclical stocks, euro
* Economic fundamentals little changed, EU meeting awaited
* MSCI Asia ex-Japan stocks valuation below 5-year average
(Repeats to more subscribers)
By Kevin Plumberg
HONG KONG, June 14 (Reuters) - Asian stocks rose to a
one-month high on Monday, led by a rally in the technology
sector, while the euro rebounded in thin trade, squeezed higher
by dealers closing out of bets against the currency.
Global equities are set for a fourth consecutive session of
gains, with the growth-sensitive materials sector likely to be
in the driver's seat again after being one of the most heavily
sold sectors in recent months as investors cut exposure to
riskier assets, fearing the worldwide recovery was losing
momentum.
However, tech stocks were leading major indexes in Japan
and South Korea higher, after semiconductor chipmakers last
week gave positive news about demand, helping Wall Street
recover early losses on Friday.
The fundamental picture has not changed much, with many
economists still expecting the U.S. economy to grow around 3
percent this year and next, even after May U.S. retail sales
unexpectedly fell for the first time in eight months.
"We're seeing pretty active short-covering on a sense that
recent risk avoidance moves were exaggerated, leaving markets
oversold," said Takashi Ushio, head of the investment strategy
division at Marusan Securities in Tokyo.
Japan's Nikkei share average rose 1.7 percent, with tech
names TDK <6762.T>, NTT Data <9613.T> and Kyocera Corp <6971.T>
all among the biggest boosts to the index. NTT Data gained 2.7
percent.
The market for semiconductors will likely grow 6 to 7
percent for the next five years, helped by strong demand in
China, Morris Chang, Taiwan Semiconductor Manufacturing Co's
<2330.TW> chief executive and chairman, told the Financial
Times. []
The MSCI index of Asia Pacific shares outside Japan
<.MIAPJ0000PUS> climbed 1.1 percent to the highest since May
19.
The index is trading at 11.5 times its earnings expected 12
months forward, a bit higher than at the beginning of June but
still cheaper than the 5-year average of 13.2 times, Thomson
Reuters I/B/E/S data showed.
With bets against the euro near record highs and bets on
the Australian dollar slashed last week, dealers were prone to
taking advantage of the relative quiet and trimming their
positions.
The euro was up 0.4 percent to $1.2172, having earlier
triggered small stop-loss orders all the way up to around
$1.2207 <EUR=>.
This week the focus for the euro will be a meeting of
European Union leaders on Thursday to convince sceptical
investors they can tighten budgets to contain a sovereign debt
crisis and boost growth at the same time. []
The Australian dollar was up 0.5 percent to US$0.8560,
having strengthened by nearly 4 cents in the last week.
Short-term investors in the International Monetary Market
cut their bets on the Australian dollar in half in the week to
June 8, suggesting that positioning will not be an obstacle to
further strength in the currency. []
The Korean won leapt around 1.5 percent <KRW=>, a relief
rally after Seoul announced foreign exchange regulations over
the weekend that were largely in line with expectations.
[]
The weaker dollar was one of the factors pushing up oil
prices. U.S. crude for July delivery rose 1.1 percent to $74.56
a barrel <CLc1>.
Since crude traded at a 10-month low on May 20, it has
drifted higher and gained $10.
