* Asian stocks rebound after Dubai statement
* Yen falls and euro rises as Dubai news boosts risk
appetite
* Emerging Asian currencies rise vs dollar
By Kevin Yao
SINGAPORE, Dec 14 (Reuters) - Asian stocks rebounded on
Monday after Dubai said it had received $10 billion from Abu
Dhabi to repay debt, which pushed down the yen and boosted the
euro and emerging Asian currencies as risk appetite improved.
European shares were expected to open up as much as 0.8
percent, financial spreadbetters said, while the S&P futures
<SPc1> gained 0.5 percent, reversing early losses and pushing
Treasury futures <TYv1> to session lows.
The dollar shot up to 88.90 yen <JPY=> after the statement
from around 88.50 yen. The euro also jumped to 130.43 yen
<EURJPY=> from around 129.40 yen. For a graphic see
http://graphics.thomsonreuters.com/gfx/CM_20091412143032.jpg
"It's all about risk appetite," said Sean Callow, currency
strategist at Westpac Banking Corporation.
"If Dubai doesn't default and thus there is no ripple
through markets to its creditors as was feared in late
November, then riskier assets and currencies can perform better
and safe havens such as yen, dollar and CHF will be sold in
knee jerk fashion."
Dubai said it had received $10 billion from Abu Dhabi to
help it repay $4.1 billion in an Islamic bond maturing on
Monday, easing fears of a potential debt default that had
rattled global markets. []
Emerging Asian currencies, such as the South Korean won
<KRW=> and Indian rupee <INR=IN>, firmed against the dollar,
taking their cue from the firmer euro. For a graphic
http://graphics.thomsonreuters.com/gfx/CM_20091412140055.jpg
After losing almost 1 percent in early trade, the MSCI
index of Asia Pacific stocks outside Japan <.MIAPJ0000PUS>
reversed course following the Dubai announcement to gain half a
percent by 0637 GMT. For a graphic see
http://graphics.thomsonreuters.com/gfx/CM_20091412141312.jpg
The Thomson Reuters index of Asia ex-Japan equities
<.TRXFLDAXPU> also gained amost 0.4 percent.
Shanghia stocks <> jumped 1.6 percent while Hong Kong
shares <> gained 1 percent.
In Tokyo, Nikkei average <> erased earlier losses to
end flat.
"The market welcomed the news about the rescue of Dubai for
now, keeping the Nikkei above 10,000," said Hiroaki Kuramochi,
chief equity marketing officer at Tokai Tokyo Securities.
"But what's more critical for the market going forward will
still be currency moves and the government's economic steps."
CDS TIGHTEN, GOLD RISES
Asian credit default swaps tightened after the Dubai news.
Asia ex-Japan iTraxx investment-grade index <0#ITAIGMPBMK=>
tightened 2-3 basis points to 98/100 bps, with South Korea CDS
narrowing slightly to 88 bps and the Philippines by 2 bps to
165/175 bps.
As the dollar fell, gold <.XAU=> gained steam and rose 1
percent to 1,125 per ounce, moving away from four-week lows hit
on Friday.
Wall Street stocks mostly rose after U.S. retail sales
posted the largest advance since August last month, while
consumer sentiment improved sharply in December.
Most analysts expect the dollar's weakness to continue
because the Fed is expected to keep interest rates near longer
than other major central banks, suggesting the dollar will
remain a funding currency for carry trades.
The dollar index <.DXY> shed a third of a percent to 76.31,
pulling away from a six-week high on hit Friday on views the
Federal Reserve might raise rates sooner than expected.
U.S. crude futures fell as much as $1 to below $69 a
barrel, extending declines into a ninth session, hurt by
worries over high oil inventories and a stronger dollar.
NYMEX crude for January delivery <CLc1> was down 53 cents
at $69.34 barrel by 0520 GMT.. On Friday, it settled down 67
cents, marking an eighth straight session of losses.
(Additional reporting by Umesh Desai in HONG KONG; Editing by
Kazunori Takada)
