GLOBAL MARKETS-Asian stocks up on US data, euro near 2-mth peak

                                
 * Stocks rise after housing data, FedEx earnings upgrade
                                
 * Euro at 2-month highs, eyeing resistances on charts
                                
 * Regional corporate earnings awaited, outlook is key
                                
 By Umesh Desai
                                
 HONG KONG, July 27 (Reuters) - Asian stocks rose to their
highest in two and a half months on Tuesday, boosted by solid
U.S. housing data, while the euro inched up towards two-month
peaks on relief over stress tests on European banks.
                                
 High-yielding currencies like the Australian and New
Zealand dollars held near recent highs and the dollar
stabilised after retreating against the yen on Monday.
                                
 "The environment is gradually improving, after U.S. new
home sales data and European banks' stress tests, but investors
are still not entirely convinced that the recovery is solid,"
said Soichiro Monji, chief strategist at Daiwa SB Investments.
                                
 "The yen has yet to weaken properly either."
                                
 The dollar was trading just below 87 yen <JPY=> after
falling 0.7 percent in the previous session.
                                
 The euro crawled up above key resistance of 1.30 <EUR=>
with sentiment buoyed after the stress tests. Analysts are now
eyeing a 2-month high of $1.3029 hit last week as the next
test.
                                
 The MSCI index of Asia Pacific ex-Japan stocks
<.MIAPJ0000PUS> was up 0.4 percent, led by gains in the
technology <.MIAPJIT00PUS> and consumer durables
<.MIAPJCD00PUS> sectors.
                                
 The index is down just 2 percent in the year to date, and
could return to the black this week, although earnings from
Asian corporate heavyweights hold the key to further gains.
                                
 Japan's benchmark Nikkei <.N225> edged up above 9,520, a
key technical resistance, but slipped back amid worries about a
firm yen hitting exporters..
                                
 Overnight, Wall Street finished higher after new home sales
in June logged a surprising jump and package delivery and
business services company FedEx Corp's <FDX.N>, an economic
bellwether, upgraded its quarterly and full-year earnings
forecasts.
                                
 Asian corporate reporting season enters its busy phase this
week amid expectations of robust results for the April-June
reporting period, though the picture in the months ahead looks
murkier. [ID:nSGE66J00X]
                                
 Among those reporting during the day are Indian energy
major Reliance Industries <RELI.BO> and Japan's Canon Inc
<7751.T> and Daiwa Securities <8601.T>.
                                
 Bucking the trend, Shanghai's composite <.SSEC>, already
the worst performer in Asia this year, fell 0.4 percent after a
report the city's banks are facing rising default risks on
loans to real estate developers. [ID:nTOE66Q003]
                                
 The mood was already jittery after a report the previous
day that almost a quarter of China's local government debt is
at risk of defaulting [ID:nTOE66P032].
                                
 Shanghai's index is down more than 21 percent in the year
to date despite a six-session rising streak which has taken it
to month highs.
                                
 The Aussie <AUD=> was trading at $0.9020 close to an
11-week peak and the kiwi <NZD=> hovered at $0.7344, not far
from a six-month high.
 (Editing by Kazunori Takada)