* Yen strengthens with uncertainty rife on the global
economy
* MSCI Asia (ex Japan stocks) flat after 6 weeks of gains
* Gold stays above $900; industrial metals sold
By Kevin Plumberg
HONG KONG, April 24 (Reuters) - Asian stocks edged up on
Friday, as financials gained on hopes that credit fears have
eased, although the yen drifted higher with investors cautious
until more details emerge on the U.S. Treasury's bank stress
tests.
The MSCI index of Asia Pacific shares outside Japan was
nearly unchanged this week after six consecutive weeks of
gains, with sentiment on the financial sector fluctuating as
first quarter bank results rolled in.
Gold prices held their ground above $900 and commodities
such as copper and oil edged lower after reports overnight
reflected no change in deteriorating U.S. housing and labour
market conditions.
Japan's Nikkei share average <> was down 0.1 percent
in choppy trade, with pressure on stocks associated with the
domestic economy winning out over demand for industrials and
technology shares.
Though their own profit outlooks looked grim, Japanese bank
and brokerage stocks got a boost after several smaller U.S.
banks posted better-than-expected quarterly results. Nomura
Holdings <8604.T> was up 3.2 percent after local media said it
would slash jobs to cut costs.
"We're in the kind of environment now where everyone is
looking to take profits, though the market's also unlikely to
fall all that much either," said Katsuhiko Kodama, senior
strategist at Toyo Securities.
The MSCI Asia Pacific ex-Japan index <.MIAPJ0000PUS> was up
0.8 percent on the day.
Hong Kong's Hang Seng index <> edged up 0.4 percent .
STRESSED OUT
Near-term the key event for many investors is the public
release on May 4 of a series of tests designed to see how 19
U.S. banks, including Bank of America, Citigroup and JPMorgan,
would fare under more adverse economic conditions.
U.S. officials were expected on Friday to release the
methodologies used in the tests.
The situation is precarious since results that are too
positive would increase scepticism among investors, while
really negative results could renew indiscriminate selling of
financials and exacerbate market volatility.
The yen drifted higher ahead of a long holiday weekend in
Japan, while emerging Asian currencies strengthened against the
U.S. dollar on hopes that deceleration in the global economy
has slowed and China is providing a stabilising force.
"Within Asia, we cannot escape the conclusion that
economies with leverage to China will outperform those with
greater leverage to developed economies...," said Patrick
Bennett, Asia foreign exchange and rates strategist with
Societe Generale in Hong Kong in a note.
The Australian dollar was down 0.9 percent to 69.35 yen
<AUDJPY=R>, though it was still up some 7 yen since February.
The British pound fell 1.1 percent to 142.68 yen
<GBPJPY=R>.
Spot gold <XAU=> rose 0.3 percent to $904.65 an ounce, but
still appeared to be in a slow decline after rising just above
$1,000 in February.
U.S. crude prices <CLc1> slipped 0.7 percent, or 36 cents,
to $49.26 a barrel after a late rally on Wall Street overnight
led oil to close higher.
(Additional reporting by Elaine Lies in TOKYO)
