* 96 pct of U.S. Gulf of Mexico oil production closed
* Worries about slower global tech spending hurts stocks
* Fund outflows total $7.6 bln last week - EPFR Global
By Kevin Plumberg
HONG KONG, Sept 1 (Reuters) - Oil rose above $116 a barrel
on Monday, as a quarter of U.S. crude production was shuttered
because of Hurricane Gustav, while Asian stocks were stung by
the technology sector, which anticipated slower global demand.
Gustav was expected to strike land west of New Orleans, on
the Louisiana coast, only days after the sombre anniversary of
Hurricane Katrina's devastation in 2005, though the storm was
not expected to strengthen significantly once it made landfall.
[]
The U.S. dollar rose against major currencies, extending
last month's biggest rally in more than a decade, on the view
the U.S. economy is likely to recover quicker than other major
economies that are probably still shrinking. The dollar's rally
was striking since it took place with oil prices also rising,
which showed the crude market's singular focus on Gustav.
"This is definitely a dangerous storm but I think most of
the market is in a wait-and-see mode," said Gerard Burg, a
commodities analyst at National Bank of Australia in Melbourne.
"Investors are a lot more cautious now given the general
bearish sentiments in the market."
The October U.S. light crude contract climbed 83 cents in
early Asian trade to $116.29 a barrel, though was only $5 from
an August low. U.S. markets are closed on Monday for a holiday.
Japan's Nikkei stock index <> fell 1.2 percent,
weighed by shares of tech companies like TDK Corp <6762.T> and
electronics parts maker Kyocera Corp <6971.T>.
Stark comments about slowing global demand for technology
from the world's second-largest computer maker Dell Inc
<DELL.O>, which knocked U.S. stocks lower on Friday, dealt a
blow to a sector whose valuations have been among the hardest
hit by the bear market.
Outside of Japan, Asia-Pacific stocks <.MIAPJ0000PUS> were
down 2 percent, eyeing August's lows.
South Korea's KOSPI <> fell almost 3 percent to the
lowest since March 2007, led by shares of Samsung Electronics
Co Ltd <005930.KS> and LG Corp <003550.KS>.
Investors pulled money out of funds across the board last
week, though financial sector funds attracted new money,
according to EPFR Global, a Boston-based firm that tracks $10
trillion in assets.
Fund outflows from 17 of the 24 equity, sector and fixed
income groups watched by EPFR totaled $7.6 billion.
All emerging market fund groups recorded outflows last
week, with emerging market equity funds posting outflows for
the 11th time in the last 12 weeks.
"Appetite for exposure to emerging markets has been eroded
by a sharp correction in commodity prices during the third
quarter of 2008, a string of downward revisions to economic
growth forecasts and painfully high inflation rates in several
key markets including Russia, India, South Africa and
Argentina," the firm said in a research note released over the
weekend.
The dollar strengthened against both major and emerging
market currencies, ahead of a busy week of central bank
meetings, including the European Central Bank, the Bank of
England and the Reserve Bank of Australia.
The euro was down 0.4 percent at about $1.4637 <EUR=>, on
its way to testing a six-month low around $1.4570 hit last
week.
The dollar was largely unchanged against the yen, at 108.42
yen <JPY=>.
Sterling fell 0.4 percent to $1.8050 <GBP=> after Britain's
finance minister told a newspaper the country's economic
downturn might turn out to be the worst in 60 years.
[]
Last month, the U.S. dollar index <.DXY> on the ICE
Futures Exchange rose 5.4 percent, the largest monthly rise
since January 1997.
Japanese government bond prices fell ahead of a 10-year
benchmark auction on Tuesday. September futures tumbled 0.68
point to 137.69 <2JGBv1> after falling as low as 137.51.
Some overseas investors were also booking profits after a
sharp JGB rally last month, traders said. The benchmark 10-year
yield, which moves in the opposite direction of the price,
jumped 7 basis points to 1.475 percent <JP10YTN=JBTC>, up from
a 4-month low of 1.400 percent hit on Friday.
(Additional reporting by Fayen Wong in PERTH, editing by Dhara
Ranasinghe)
