* Nikkei edges up from 16-mth lows, helped by
short-covering
* Yen stays below 15-yr high vs dlr, Japan action in focus
* U.S. economy worry keeps markets in check; gold near
highs
(Repeats to more subscribers)
By Aiko Hayashi
TOKYO, Aug 26 (Reuters) - Asian stocks rose on Thursday as
investors hunted for bargains among recently beaten-down
shares, while the yen pulled further away from 15-year highs as
investors wondered whether Japanese officials would take fresh
steps to curb the currency's strength and spur economic growth.
But concern about exposure to riskier assets continued to
weigh on markets after U.S. data on Wednesday heightened fears
that the world's biggest economy may be at risk of sliding back
into recession.
U.S. new home sales slumped to the slowest pace on record
in July and durable goods orders were weaker than expected,
suggesting growth could slow sharply without more government or
central bank support. []
The latest in a growing string of weak data initially
pushed major U.S. stock indexes lower, but they bounced back
later in the session, indicating investors may see further dips
as a buying opportunity and lending support to Asian markets.
[]
"There are increasing signs of a slowing global economy,
and on top of that you have Japan's situation where it really
isn't providing policy to deal with its economic issues," said
Kenichi Hirano, operating officer at Tachibana Securities.
"Otherwise, why is the Nikkei performing so poorly? As
corporate earnings showed, the economy itself is not doing
badly enough to warrant the current weakness in shares, but the
lack of clarity on the yen's strength is not good."
The Nikkei <> rose 0.3 percent, lifted by what market
players said was short-covering and buying of futures by
long-term domestic investors, after hitting a 16-month closing
low on Wednesday.
But gains were capped by doubts about how much policymakers
could really do to turn the ailing economy around, as well as
fears of longer-term policy inaction prompted by a murky
political outlook. []
Japan's government will urge the Bank of Japan to ease
monetary policy further as part of a package of steps to stem
the yen's rise and support the economy, the Asahi newspaper
said, ratcheting up pressure on the central bank to take action
before a policy meeting next month.
Japan has also not ruled out market intervention to weaken
the yen, though markets largely doubt such a move or further
symbolic BOJ policy easing would have much effect.
The benchmark Nikkei broke below 9,000 this week for the
first time since May 2009. The 9,000 to 9,100 area had been
strong support since last year, and market players say there
will be few technical targets to break the benchmark's further
falls.
The MSCI index of Asia-Pacific stocks outside Japan rose
0.4 percent <.MIAPJ0000PUS>, led by sectors including consumer
staples and healthcare, while those most sensitive to business
cycles such as technology eked out smaller gains.
The index hit a 1-month low in the previous session and is
down about 4 percent on the year, but has held up better than
the all-country world index, which has fallen 7.2 percent
<.MIWD00000PUS>.
Asia's strong economic growth apart from Japan has been a
buffer against recent global shocks, with emerging markets
continuing to attract foreign investors despite a broader
aversion to riskier assets for much of the year.
YEN FOR ACTION?
News that Bank of Japan Governor Masaaki Shirakawa will
attend the Kansas City Federal Reserve conference in Jackson
Hole, Wyoming, this week was making some players hesitant to
push the yen higher, analysts said. []
The dollar rose 0.2 percent from late U.S. trade to 84.77
yen <JPY=>, having risen from a 15-year trough of 83.58 yen
struck on trading platform EBS on Tuesday.
"Investors are cautiously watching if Japanese authorities
will do something," said Hideki Amikura, deputy general manager
of the forex section at Nomura Trust and Banking.
"Shirakawa is likely to speak to (Federal Reserve Chairman
Ben) Bernanke and other central bankers in Jackson Hole, and
that is prompting market players to speculate about possible
Japanese action."
But even if Japan's government acted alone to try to halt
yen strength, dealers have been sceptical it could reverse the
growing unwillingness among investors to take risks that has
been behind the yen's 10 percent rise against the dollar so far
this year. []
The euro further recovered from a nine-year trough against
the yen after data on Wednesday showed that business morale in
Germany improved to its highest in more than three years in
August, offsetting concerns about fiscally weak euro zone
countries. []
The euro climbed 0.5 percent on the day to 107.57 yen
<EURJPY=R> and inched up 0.3 percent against the dollar to
$1.2700 <EUR=>.
Despite the day's gains in Asian stock markets, however, a
clear falling trend in government bond yields around the world
reflects deep unease that the chances of another recession are
growing.
The benchmark 10-year Japanese government bond yield
<JP10YTN=JBTC> rose 2.5 basis points to 0.925 percent on falls
in U.S. Treasury prices and profit-taking, but analysts said
they expect yields to remain on a downtrend on lingering easing
hopes.
U.S. crude oil <CLc1> rose for a second day, nearing $73 a
barrel, as bargain-hunting and short-covering in equities
spread to the oil market.
Gold <XAU=> edged up to $1,239.30 an ounce, hovering near
its strongest level in eight weeks hit the previous day on
persistent worries the U.S. recovery was stalling.
(Additional reporting by Elaine Lies and Rika Otsuka in
Tokyo)
(Editing by Kim Coghill)
