* U.S. dollar on track for biggest monthly decline of 2009
* CRB commodity index set for biggest monthly rise since
1974
* Asia stocks rise, oil at six-month high
* Asia ex-Japan stocks set for 3rd double-digit monthly
gain
By Kevin Plumberg
HONG KONG, May 29 (Reuters) - The Australian dollar surged
to a eight-month high on Friday on the back of rising raw
material prices, while crude oil matched a six-month high above
$65, up some $4 this week on hopes that a global economic
recovery will spur energy demand.
Higher commodity prices this week, which have also been
propped up by the falling U.S. dollar, supported mining and
energy-related stocks in Asia, though investors were reluctant
to take big bets on increasingly expensive shares until more
evidence emerged of a sustained recovery.
Major European stock markets opened up as much as 1.2
percent, according to financial bookmakers, underpinned by
rising commodity prices. U.S. stock futures rose 0.1 percent
<SPc1>, pointing to a higher open.
Growing confidence that the global economy has seen the
worst of the financial crisis and that some struggling Asian
economies will return to growth in the second quarter have
supported equity markets since early March and pushed up raw
materials prices.
Copper traded on the London Metal Exchange <MCU3> was
headed for a fifth consecutive month of gains.
"We are getting some better numbers and the currency
markets are supporting metals prices," said Mark Pervan, ANZ
Bank's senior commodities analyst.
"We may now be looking at a W-shaped recovery. We are in
the first V, and another is to come though, I don't think it
will be as steep as the first."
The ICE Futures U.S. dollar index <.DXY>, a measure against
six other major currencies, fell 0.4 percent, within sight of a
five-month low plumbed a week ago.
The U.S. dollar was down 0.2 percent to 96.70 yen <JPY=>,
though was still up 1.9 percent in May, the biggest monthly
gain of the year, with Japanese investors finding value mostly
in foreign bond markets.
The yen got a boost after data showed Japanese industrial
production rose 5.2 percent in April on a monthly basis, the
largest monthly gain since 1953, and the government expected
continued gains through June. []
The Australian dollar bolted to a eight-month high at
US$0.7931. Higher commodity prices and evidence of an economic
strength in China have launched the Australian currency for the
last three months, making it a proxy for global growth
prospects.
COMMODITY BULLS ON PARADE
The Reuters-Jefferies CRB index <.CRB>, a global
commodities benchmark, was up 12.3 percent in May, on its way
to the biggest monthly gain since July 1974.
"Gains in commodities reflect continued recovery of demand
outlook from its collapse after Lehman's bankruptcy triggered
concerns of a depression," said Dariusz Kowalczyk, chief
investment strategist with SJS Markets in Hong Kong.
"Medium-term outlook remains positive for commodities and
other risky asset classes as we continue to expect that U.S.
GDP will start to expand in Q3 and several major Asian
economies already in Q2," he said in a note.
A 1.7 percent rise in Australia's benchmark S&P/ASX 200
equities index <> led modest gains across Asia's stock
markets.
Japan's Nikkei share average <> rose 0.75 percent to a
seven-month high, having punched above its 200-day moving
average earlier in the week.
Data showed Japan's industrial output jumped 5.2 percent in
April, much more than expected and the second straight month of
increases, as companies continue to restock after a heavy
run-down of inventories late last year. But output was still
less than two-thirds of a year earlier, and it is still not
clear if there has been a return to sustained consumer demand
necessary for a global economy recovery. []
Hong Kong's Hang Seng index rose 1 percent <> after
opening at an eight-month high, helped by a 4.2 percent gain in
shares of offshore oil firm CNOOC Ltd <0883.HK>.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 1.6 percent to its highest since Oct. 3,
on its way for a third consecutive month of double-digit
percentage gains.
Asia has continued to lead a global equity rally that began
on March 9. The MSCI index has surged 52 percent since March 9
while the all-country world index <.MIWD00000PUS> has climbed
34 percent.
U.S. oil for July delivery rose 0.55 percent to $65.44
<CLc1>, matching the highest levels since early November
reached on Thursday, after OPEC held production at current
levels.
Oil is set for the biggest monthly percentage increase in
May since March 1999.
The Organization of the Petroleum Exporting Countries kept
output targets unchanged on Thursday, as expected, betting on a
strengthening world economy and tentative signs of increased
demand to boost oil prices. []
(Additional reporting by Nick Trevethan in SINGAPORE)
(Editing by Kim Coghill)
