* Hyundai, Honda help auto makers, Apple boosts tech
* Yen and bond rallies fade with Credit Suisse results
* IMF sees deepest global recession since World War Two
By Dan Burns
HONG KONG, April 23 (Reuters) - Stocks staged a comeback
across most of Asia on Thursday as a larger-than-expected
profit from Korea's Hyundai fed optimism that the auto sector
could be nearing a turnaround and tech shares found strength on
the back of buoyant earnings from Apple <AAPL.O>.
European shares were more subdued in early trading with
major indexes slightly lower.
The turnaround in Asian equities took the wind out of an
earlier rally in government bonds, gold and Japan's yen that
was fuelled by a weakening outlook for the global economy.
A surprisingly large profit from Credit Suisse eased some
of the concern over credit losses at global banks that had
flared again following a big loss from Morgan Stanley and a
report that top Japanese broker Nomura had also fallen deeply
into the red.
Credit Suisse's <CSGN.VX> first-quarter profit was about
twice what was expected, and it said it remained optimistic
about its prospects. [].
Japan's Nikkei <> added nearly 1.4 percent, while MSCI
index of Asia Pacific shares excluding Japan gained 1.3
percent. South Korea's Kospi <> rose 0.9 percent, led by a
3 percent rise in Hyundai Motor <005380.KS>.
While Hyundai's profit fell, it managed to gain global
market share and analysts said efforts by global governments to
stimulate growth would give the sector a lift later this year.
[]
Car makers are suffering their worst-ever downturn and
investors are edgy about the future of General Motors <GM.N>
and Chrysler, which are being kept afloat by U.S. government
loans. Chrysler has until the end of this month to arrange a
turnaronud, while GM has until June 1.
"Today's gains are all about results ... we have had quite
solid set of earnings reports lately and tomorrow Samsung Elec
is said to be set to post quite a strong operating profit,"
said Y.S.Rhoo, a market analyst at Hyundai Securities in Korea.
Samsung <005930.KS> gained nearly 3 percent in step with
the tech sector following Apple's earnings, which were lifted
by strong sales of iPods and iPhones.
Futures on the Nasdaq 100 <NDc1> were up more than 1
percent, pointing to more gains in the group when the U.S.
session gets underway.
In Japan, Pioneer <6773.T> jumped more than 23 percent
after a company source said Honda Motor Co <7267.T> was
finalising plans for a big investment in the electronics maker.
Honda rose 1.7 percent.
Asia's equity gains came against the headwinds of the
latest grim report on the global economy from the International
Monetary Fund.
The IMF slashed its forecasts for every major country and
predicted worldwide gross domestic product would contract by
1.3 percent this year, marking the deepest post-World War Two
recession by far.
Still, Asia's rally was not matched in Europe, where early
action had most major indexes down about half a percent. The
pan-European FTSEurofirst 300 was off by 0.4 percent.
Credit Suisse shares were a bright spot, gaining 6.5
percent.
Japan's Nomura Holdings also rallied back from a 4 percent
drop to finish unchanged. It had been dragged lower after the
Nikkei business daily reported the broker may post a loss of
more than $7 billion for the year ended in March.
The country's second-largest bank, Mizuho Financial Group
<8411.T>, estimated after the close that it would report a loss
of about $6 billion for 2008/09. []
Investors remain sceptical toward the financial sector
ahead of the release of U.S. bank stress tests on May 4. The
tests were designed to see how the country's largest banks
would fare if the U.S. recession proved unexpectedly severe.
On Wednesday, a larger-than-expected quarterly loss from
Morgan Stanley helped drag the U.S. benchmark Standard & Poor's
500 lower.
S&P 500 futures were up 0.8 percent, indicating a firmer
open for Wall Street.
YEN AND BOND RALLIES PETER OUT
The return of appetite for equities dented an earlier rally
in the yen, and the Japanese currency edged lower against the
dollar and euro.
The dollar last traded at 98.06 yen <JPY=>, up from 97.97
the day before and the euro ticked up to 127.65 yen <EURJPY=>
from 127.37 as banking sector fears eased.
Uncertainty about the European Central Bank's next monetary
policy move has kept selling pressure on the euro this month.
U.S. Treasuries were down modestly with stock futures
gaining. []
The yield on benchmark 10-year Treasury notes rose to 2.95
percent from 2.94 percent late in New York. The U.S. yield
curve continued its steepening trend with the spread between
10-year notes and 2-year notes climbing above 198 basis points,
the widest gap in 10 days.
Japanese bond futures gained but ended off their session
high. The 10-year contract expiring in June rose to 137.26.
Earlier it had hit its highest since April 3.
Spot gold <XAU=> was up less than 1 percent at $891.75 an
ounce from $889.15 late in New York.
U.S. crude prices <CLc1> fell 0.6 percent, or 21 cents, to
$48.57 a barrel on worries that the weak global economy will
continue to undermine energy demand.
(Editing by Neil Fullick)
