* Strong China data spurs risk-taking, Asia stocks up 1.8
pct
* Banks gain, Basel III gives them more time to raise
capital
* Basel deal "removes uncertainty" from the
market--analysts
* Euro surges over 1 pct, low-yielding yen retreats
* Oil jumps on China growth, U.S. pipeline closure
By Nick Macfie
SINGAPORE, Sept 13 (Reuters) - Shares in Asia and Europe
rose on Monday and the euro surged on buoyant Chinese factory
data and as a deal on global bank rules gave lenders some
respite before having to raise hundreds of billions of dollars
in fresh capital.
Japan's benchmark Nikkei average <> closed 0.9 percent
higher, while the MSCI index of Asian shares outside Japan
<.MIAPJ0000PUS> jumped 1.8 percent as encouraging Chinese and
U.S. data encouraged investors to return to riskier assets.
An index of leading European shares <> rose 0.7
percent, while U.S. S&P 500 futures <SPc2> advanced nearly 1
percent, pointing to a stronger opening on Wall Street later in
the day.
"We are seeing quite decent data, especially from China,
and the U.S. data also helped," said Lorraine Tan, director of
Asia equity research at S&P in Singapore.
"We do think markets are bottoming out... Unless there is a
major shock, markets will trend upwards."
Chinese factories increased production in August and money
growth easily topped analysts' expectations, according to data
on Saturday, showing that the economy remained buoyant despite
government efforts to clamp down on bank lending and property
speculation.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The yen: Eye on intervention : http://r.reuters.com/mam52p
For a Basel III reforms, click []
China CPI PPI http://link.reuters.com/duk92p
China lending http://link.reuters.com/fuk92p
China factory output, PMI http://link.reuters.com/gaw58n
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Data on Friday showed U.S. wholesale inventories surged the
most in two years in July, adding to signs that economic growth
in the third quarter of the year may prove a bit stronger than
many forecasters had expected. The U.S. trade gap also narrowed
sharply in July. []
The reports pushed up major U.S. stock indexes by as much
as 0.5 percent. []
While the U.S. economy still seems mired in a slow-growth
path, recent data have helped dispel some fears that it might
be sliding back into recession.
BASEL BUOYS BANK STOCKS
Big banks were among the day's leaders in Asia after global
bank regulators agreed in Basel, Switzerland, on Sunday to
force banks to more than triple the amount of top-quality
capital they must hold in reserve to prevent any repeat of the
international credit crisis. []
But to ease the burden, regulators gave the banks
transition periods to comply. These periods, extending in some
cases to January 2019 or later, are longer than many analysts
had expected.
Top European lender HSBC <0005.HK><HSBA.L> rose more than 2
percent at one point in Hong Kong, with some of Japan's leading
banks also seeing strong gains.
"It's a mixed blessing for the banks, but I'm sure
investors will be happy to get some clarity and allow the
market to move on," said Robbert Van Batenburg, head of equity
research at Louis Capital Markets in New York, said of the new
rules, known as Basel III.
"... The best thing is it removes the uncertainty that was
hanging over the market... The markets should take this
favourably."
The U.S. Federal Reserve System's Board of Governors said
the decision should help minimise future financial meltdowns.
"The agreement represents a significant step forward in
reducing the incidence and severity of future financial crises,
providing for a more stable banking system that is less prone
to excessive risk-taking, and better able to absorb losses
while continuing to perform its essential function of providing
credit to creditworthy households and businesses."
EURO CLIMBS
The euro <EUR=> surged following the Basel agreement and
the upbeat Chinese data, which also propelled the Australian
dollar <AUD=> to its highest in four months against the dollar.
The euro rose more than 1 percent against the dollar to
$1.2819, topping its 55-day moving average for the first time
in a week.
The low-yielding yen faltered as investors moved into
riskier assets offering the prospect of stronger returns.
The dollar traded at 84.07 yen <JPY=>, after hitting a
15-year low of 83.34 yen last week.
Gold, a traditional safe haven amid bad economic news, was
slightly higher. Spot gold <XAU=> was hovering around $1,247 an
ounce.
Oil rose to a one-month high, buoyed by strong Chinese
industrial output and an extended shutdown of the biggest crude
oil pipeline supplying Canadian oil to U.S. refineries in the
Midwest.
U.S. crude futures for October <CLc1> climbed 1.3 percent
to $77.44 a barrel.
(Additional reporting by Charlotte Cooper; Editing by Kim
Coghill)
