* Asian stocks get fresh boost as global markets rally
* Surge in U.S. manufacturing, earnings boost sentiment
* Dollar slips to 3-mth low on recovering risk appetite
* Copper at record high, oil remains over $100/barrel
(adds Tokyo, Hong Kong close, new quotes)
By Ron Popeski
SINGAPORE, Feb 2 (Reuters) - Asian stocks jumped on
Wednesday and the dollar sank as a surge in U.S. manufacturing
and strong company earnings convinced investors to pile back
into riskier assets despite turmoil in Egypt.
Commodities prices remained firm, bolstering shares of
resources firms, on signs that the global economy is gathering
strength. Copper surged to record peaks near $10,000 a tonne,
while Brent crude remained above $101 a barrel -- its highest
since October 2008.
After a million people took to the streets in Egypt on
Tuesday, Egyptian President Hosni Mubarak said he would
surrender power in September, but that was not enough for many
protesters who demanded an immediate end to his 30-year rule.
Much now appears to depend on whether the army can ensure a
peaceful leadership transition.
"The easing of the crisis in Egypt helped investors to
concentrate on positive economic data from the U.S., boosting
their appetite for equities," said Hideyuki Ishiguro of Ikasan
Securities.
Japan's Nikkei index rose 1.8 percent -- its biggest
daily advance in around two months -- as the latest in a string
of bullish U.S. economic data pushed Wall Street to its highest
levels in 2-1/2 years.
The MSCI index of Asian shares outside of Japan
advanced 1 percent, though activity was thin
ahead of the long Lunar New Year holidays in much of Asia.
Hong Kong's Hang Seng Index climbed 1.8 percent in a
shortened session while Australia's main benchmark
gained 0.9 percent despite the approach of Cyclone Yasi, said by
forecasters to be the strongest ever to strike the country.
Global mining giants BHP Billiton and Rio Tinto
both rose more than 2 percent as metals prices
continued to rally.
The dollar was stuck near its lowest level in three months
against the euro as robust economic data eased concerns over
Egypt and coaxed investors out of safe-haven assets. The euro
rose to $1.3853 on trading platform EBS, a touch higher
than late U.S. levels.
"When investors' risk appetite grows, the dollar becomes a
funding currency," said Junya Tanase, a strategist at J.P.
Morgan Chase bank.
The U.S. manufacturing sector grew at its fastest pace in
nearly seven years, data showed on Tuesday, but factories' costs
are also rising and are being passed on to consumers, raising
fears of both a spike in inflation and a slowdown in sales as
buyers baulk at higher prices.
On Wall Street, investors capitalised on last week's
pullback, sending the Dow to close over the psychologically
important level of 12,000 for the first time since June 2008 and
the S&P 500 to close above 1,300 for the first time since August
2008.
Markets considered the crisis in Egypt contained for now,
with little risk of spreading elsewhere through the oil-rich
region after Mubarak said he would surrender power soon --
although opposition leaders dismissed his speech, protesters
stayed put and and U.S. President Barack Obama called for faster
change.
Commodity prices remained strong, with London copper futures
rallying to a record high of $9,980 -- bolstered by
positive manufacturing data from China and the United States and
speculative interest in physical commodities.
North Sea Brent crude oil futures eased 0.3 percent
to $101.44 as traders continued to watch if the unrest in Egypt
would curb its oil shipments, while U.S. crude futures
slipped closer to $90.
(Editing by Kim Coghill)
