* Dollar struggles as Fed minutes point to easing
* Asia, Europe stocks edge up, techs firm
* Indian outsourcers boosted by client spending
* Japan comments on G20 forum underline currency tensions
* Gold strengthens on dollar weakness
By David Fox
SINGAPORE, Oct 13 (Reuters) - Asian and European shares
rose on Wednesday on increasing expectations that the U.S.
Federal Reserve will ease policy to support the economy and
following an upbeat fourth-quarter forecast from computer
chipmaker Intel.
The dollar remained broadly weak after details of the last
meeting of the U.S. Federal Reserve suggested the central bank
was closer to injecting fresh stimulus into the ailing economy.
[]
Comments by Japan on South Korea's leadership of the
forthcoming G20 forum underlined growing currency tensions
globally. Finance Minister Yoshihiko Noda questioned Seoul's
regular currency market interventions. []
Intel <INTC.O>, the world's largest chipmaker, raised
expectations for higher technology earnings in the fourth
quarter by forecasting stronger sales and margins for the
period.
The outlook was part of its third-quarter earnings reported
after Wall Street closed, and the stock climbed 1 percent in
after-hours trade. []
"It's not that Intel's results and outlook were great, but
they were modestly better than the market's already lowered
expectations," said Lee Min-hee, an analyst at Dongbu
Securities in Seoul, where the Korea Composite Stock Price
Index <> (KOSPI) ended up 0.43 percent.
"It is such relief that is lifting technology stocks. The
PC market has been showing signs of improvement since
September, and key memory chip prices are expected to stabilise
by the end of this year."
The pan-European FTSEurofirst 300 <> index of top
shares rose 0.3 percent. The STOXX Europe 600 Technology
<.SX8P> index gained 0.7 percent.
However, falls in the banking sector limited European
gains. Standard Chartered <STAN.L> slipped 4.4 percent after it
said it plans to raise 3.3 billion pounds ($5.3 billion)
through a rights offering to raise its capital adequacy ratio.
[]
In Asia, shares of Hynix Semiconductor <000660.KS>, the
world's No. 2 memory chipmaker, rose 3.54 percent. TSMC
<2330.TW>, the world's biggest contract chipmaker, rose 0.9
percent.
The tech optimism also surfaced in India with No. 2
outsourcers Infosys <INFY.BO> climbing 1.3 percent on
expectations of strong earnings results due Friday.
Tata Consultancy Services <TCS.BO> and Wipro <WIPR.BO>, the
No. 1 and No. 3 software services exporters, were up 1.9 and
1.3 percent respectively.
"IT spend at Indian techs top clients is on the rise even
as rising deal pipelines, acceleration in discretionary spend
and increasing deal sizes indicates greater confidence at
client end," brokerage CLSA said in a note this week.
"Infosys and TCS remain our preferred picks to play this
top-line upswing," it said.
FED AFFECT
Expectations that the U.S. Fed is poised to revive the
country's faltering recovery has spurred something of a
worldwide equity rally. The Fed next meets to review policy on
Nov 2-3.
U.S. stocks hit a five-month high on Tuesday. The S&P 500
index is up 11.3 percent since the start of September, and last
month's performance was one of the best for stocks in a decade.
MSCI's all-country world equity index <.MIWD00000PUS> has
posted a 12.1 percent gain since the beginning of September.
The index was up 0.5 percent.
MSCI's Asia ex-Japan index rose 0.9 percent
<.MIAPJ0000PUS>.
Hong Kong's Hang Seng index <> was up 0.31 percent
while Tokyo's Nikkei <> closed 0.2 percent higher.
Still, the Nikkei was capped by concerns over the yen's
strength. The dollar rose 0.1 percent to 81.87 yen <JPY=>, but
was not far away from a 15-year low of 81.37 struck on Monday.
[]
Record low interest rates and weak growth in wealthy
countries have pushed global investors into higher-yielding
emerging markets, driving up their currencies and asset
markets.
Several governments, nervous of the damage this could
bring, have intervened in markets or tried to contain capital
flows, giving rise to concerns that uncoordinated action could
stunt global economic recovery.
Japan intervened in the currency market last month for the
first time in more than six years to try to stem a rise in the
yen that threatens a fragile economic recovery.
"The market is watching for possible Japanese intervention.
But as long as the yen stays strong, the Nikkei will stay under
pressure," said Mitsushige Akino, chief fund manager at
Ichiyoshi Investment Management.
The euro <EUR=> pushed higher, spurred by Fed minutes of
its Sept. 21 meeting that showed central bankers thought the
economy might need further support.
The euro was changing hands at $1.3965 on Wednesday, up
from a low on Tuesday around $1.3771.
Gold strengthened on the back of the dollar's weakness and
is seen to be consolidating after a record-breaking rally took
it to an all-time high of $1,364.6 an ounce last week.
"The markets are buying on a dip, and pushing things
higher," said Mark Pervan, senior commodities analyst at ANZ.
"$1,400 is probably on the radar for the next two to three
months. No problem."
Spot gold <XAU=> rose 0.4 percent to $1,355.45 by 0615 GMT,
regaining ground lost in the previous session.
(Editing by Neil Fullick)
(david.fox@thomsonreuters.com; +65 6870 3815; Reuters
Messaging: albert.yoon.reuters.com@reuters.net))
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