* Asian shares gain, but rally loses steam before U.S. jobs
* U.S. bank test bolsters sentiment, U.S. stock futures
gain
* Dollar dips, euro range-bound day after ECB
* Weak auction for U.S. Treasury 30-year weighs
By Rafael Nam
HONG KONG, May 8 (Reuters) - A recent surge in Asian shares
lost steam ahead of U.S. monthly jobs data later on Friday that
may signal whether the global economy has indeed hit bottom,
after stress tests on U.S. banks offered no real surprises.
A further dose of confidence on the economy will be key in
extending the rally in global stocks, analysts said, especially
as investors' worries about the world financial system recede.
Asian shares, for example, are up about 9 percent this
week, bringing gains since their 2009 low in early March to
around 51 percent.
Results from U.S. bank stress tests released after the
close of Wall Street on Thursday showed smaller capital needs
that once feared. These concerns had already been tampered down
recently after reassurances from U.S. regulators.
[]
If anything, the report -- which show U.S. banks need to
raise a combined $74.6 billion -- helped remove a key
uncertainty that had dogged global markets earlier this year,
bolstering U.S. stock futures and likely push European shares
higher at open.
But the dollar lost some ground after earlier broad gains.
"There's now a sense that the market is already starting to
search for new trading factors, basically looking to macro
indicators for confirmation that the global economy is truly on
a rising trend," said Masayoshi Okamoto, head of dealing at
Jujiya Securities in Japan.
There are a number of signs that the global economy may
have already seen the worst of times, with a drop in new U.S.
jobless claims and better German manufacturing data on Thursday
adding to that optimism. []
The European Central Bank also joined other policy makers
in cutting interest rates on Thursday, an action that had been
widely expected, while adding it will buy up bonds for the
first time, albeit in more limited fashion than other central
banks. []
There are, however, reasons for pause. A weak auction of
30-year U.S. Treasury bonds on Thursday raised worries about
how much the world's top economy will have to pay to attract
investors such as China to finance its big stimulus plans.
Some voices are also warning against too much optimism.
China's vice premier Wang Qishan said the global financial
crisis is spreading and the economy will get worse before it
gets better, in a written article in the Financial Times on
Friday. []
The U.S. April employment data due out at 1230 GMT could be
key in helping set a near-term course for global markets, with
economists forecasting the pace of lay-offs has eased.
Economists polled by Reuters forecast 590,000 U.S. jobs
were lost, which would be down from March, but they also expect
the unemployment rate to have gained to 8.9 percent from 8.5
percent in the previous month. []
"Given the huge amount of cash standing on the sidelines, a
positive surprise on the job report could extend the rally,"
Calyon said in a report referring to stock markets.
FINGERS CROSSED
The MSCI index of Asian stocks outside Japan
<.MIAPJ0000PUS> rose 0.4 percent as of 0620 GMT, rebounding
from losses in the morning session.
Fund flows into Asia have seen an upswing, helping the MSCI
index strike its highest level since early October on Thursday.
The EPFR Global-tracked Asia ex-Japan Equity Funds posted
the biggest inflows among the four major emerging markets
equity fund groups for the second week running, taking in $1.62
billion.
Equity funds geared to China, Taiwan and Greater China
accounted for two thirds of this week's flows into Asia
ex-Japan Equity Funds.
Japan's Nikkei average <> rose 0.5 percent to notch a
new six-month close. Elsewhere, among the stronger gainers,
shares in Singapore <.FTSTI> rose more than 1 percent, though
other indexes such as in Hong Kong <> and South KOrea
<> gained more moderately.
Some of the optimism about stocks were marred after shares
of China Zhongwang <1333.HK>, Asia's largest maker of aluminium
extrusion products, fell nearly 5 percent in their Hong Kong
trading debut after the company raised $1.3 billion in the
world's biggest IPO since August. []
Corporate earnings reports were also a focus for investors.
Shares in Toyota Motor <7203.T> fell 1.5 percent after the
Nikkei business daily reported the world's biggest auto maker
was likely to post hefty losses. []
After the market's close, Toyota said had lost $6.9 billion
the final quarter and forecast increasing losses this financial
year. []
Investors have favoured riskier assets amidst the upswing
in stock markets worldwide. U.S. crude futures <CLc1> rose 78
cents to $57.49 a barrel, heading for weekly gains of more than
7 percent, on the same hopes that the global economy may have
reached bottom that are bolstering equities.
But another potential source of worry could come should
doubts creep up about the ability of governments to finance the
trillions being spent in spending plans or alternative measures
such as buying corporate or government debt, as shown by the
U.S. 30-year bond auction on Thursday.
The 30-year bond <US30YT=RR> remained under pressure during
Asia trading, with yields rising to 4.30 percent, up 1 basis
point from late U.S. trading. On the other hand, the benchmark
10-year note <US10YT=RR> gained ground, with yields down about
2 basis points to 3.32 percent.
The dollar index, a gauge for the greenback's performance
against six major currencies, fell 0.2 percent to 83.739
<.DXY>, down after earlier posting modest gains.
The euro was unchanged from late U.S. trade at $1.3394
<EUR=>, after dipping earlier when traders sold euros bought
the previous day after the European Central Bank said it would
buy about 60 billion euros ($79.6 billion) worth of covered
bank bonds was seen as underwhelming in light of much bigger
similar moves taken in other countries.
