By Rafael Nam
HONG KONG, April 1 (Reuters) - Asian stocks edged higher on
Tuesday as better-than-expected data, including for South
Korean exports, offered some respite to markets that have been
hit this year by fears of a serious global economic slowdown.
But uncertainty about the extent of writedowns required in
the financial sector remained in place, preventing stronger
gains, with analysts predicting a recovery in global stocks is
unlikely unless confidence improves on that front.
Commodities such as oil steadied after plunging on Monday,
while the U.S. dollar was largely unchanged against major
currencies such as the euro.
"People are waiting for the smoke to settle after the bombs
landed, and nobody's in the mood to do much," said Hans Kunnen,
had of investment markets research at Colonial First State.
The MSCI's measure of Asian stocks outside Japan
<.MIAPJ0000PUS> rose 0.7 percent by 0200 GMT.
The gains comes a day after the index posted a 14.2 percent
loss in the first quarter -- its biggest in over five years --
as fears about the global economy and a credit crunch have
soured the confidence of investors.
But for now, investors appeared comforted after Wall Street
rose on Monday on stronger-than-expected Midwestern business
activity in the United States and after a plan for regulatory
overhaul raised hopes for calmer financial markets.
[] and []
Closer to home, South Korea said exports in March rose by a
higher-than-expected 19.1 percent from a year earlier, soothing
concern that a slowdown in the global economy was hitting
demand for the country's goods. []
"It appears exports to the United States are not weakening
as sharply as expected. Demand from emerging markets remains
solid and the IT industry is holding up," said Goh You-sun, an
economist at Daewoo Securities in Seoul.
Shares in South Korea <> rose 0.5 percent.
Japan's Nikkei average <> rose 1.4 percent even after
the Tankan survey showed weakening Japanese business sentiment
as investors saw the uncertainty about the economy as
sufficiently priced in an index that dropped 18.2 percent over
the previous quarter. []
Elsewhere, Singapore's <.FTSTI> and Hong Kong's <>
stocks rose nearly 1 percent each, while Taiwan's <> and
Australia's main indexes <> were little changed.
Shanghai's main index <> fell 1.3 percent, continuing
a slide that has seen it lose 34 percent in the previous
quarter alone.
Still, concerns over the financial sector remain. After the
New York close, Lehman Brothers <LEH.N>, a U.S. investment bank
beset by rumours of not having enough funding, said on Monday
it plans to raise $3 billion of capital to quash questions
about its stability. Lehman shares traded down 2.2 percent
after hours. []
COMMODITIES STEADY
Oil prices remained steady after easing supply worries sent
prices down more than $4 on Monday following a projected
recovery in Iraq's exports after heavy fighting in the oil port
city of Basra ended.
U.S. crude for May delivery <CLc1> fell 23 cents to $101.35
a barrel on the Globex electronic trading platform.
Gold <XAU=> gained slightly to $918.90/$919.70 an ounce
from $916.20/917.00 late in U.S. trade on Monday.
The dollar also steadied, trading little changed against
the euro a day after posting its biggest quarterly loss in four
years, with the yen slipping only slightly after the Bank of
Japan's quarterly tankan survey.
The dollar was at 99.80 yen <JPY=>, while the euro eased
slightly to $1.5770 <EUR=> from around $1.5790.
But Japanese government bond futures fell sharply on
Tuesday at the start of the country's new financial year as
investors took profits on a rally in the past few months.
June 10-year futures fell 0.45 point to 140.07 <2JGBv1>
after sliding as low as 139.83.
(Editing by Lincoln Feast)
