GLOBAL MARKETS-Stocks firm despite weak economic data

                                
 By Tom Miles
                                
 HONG KONG, Feb 18 (Reuters) - Asian investors shrugged off
a rash of weak economic indicators on Monday to pick up stocks
that looked like weathering a downturn, while oil and metals
kept close to record prices as supply concerns continued to
bite.
                                
 Investors, glued to screens for signs of a U.S. recession
that could infect the global economy, saw more evidence that
growth in the world's largest economy was slipping.
                                
 The Dow Jones industrial average <.DJI> dipped 0.2 percent
on Friday on concerns about consumer spending after an index of
consumer sentiment fell to a 16-year low and retailer Best Buy
<BBY.N> warned that shopper traffic dropped off after the
holidays. [ID:nN15565559]
                                
 "Despite the weak data, Wall Street eked out only a small
decline on Friday," said Kim Young-gak, an analyst at Hyundai
Securities.
                                
 "Whereas investors are still bracing for more potential
negatives and additional market falls, they seem to be betting
that the scope of any losses would not be as deep as the one
seen in January."
                                
 MSCI's measure of Asia Pacific stocks excluding Japan
<.MIAPJ0000PUS> was up 0.6 percent by 0200 GMT but is still
down nearly 10 percent so far this year.
                                
 Japan's Nikkei average <.225> was up 1.3 percent, with
Toshiba Corp <6502.T> and Sony Corp <6758.T> both rising after
a Toshiba source said it was conceding defeat in the
high-definition DVD format war.
                                
 TANKAN WEAK
                                
 The latest economic data from Japan was also weak but last
week's better-than-expected gross domestic product figure
continued to have a hold over markets.
                                
 "The market mood has improved following GDP and U.S. retail
data last week," said Noritsugu Hirakawa, strategist at Okasan
Securities.
                                
 Sentiment among Japanese manufacturers worsened to a
three-year low in February, hurt by rising raw material costs
and lacklustre personal consumption, the Reuters Tankan survey
of business confidence showed on Monday. [ID:nTKF002991]
                                
 It matched a low marked in February 2005, when Japan's
economic growth was at a standstill, reinforcing views that the
Bank of Japan will keep rates on hold at 0.5 percent or even
cut them this year on worries over the outlook.
                                
 Other data showed softness in manufacturing in New York
state and worries about the stability of bond insurers. U.S.
markets will be closed on Monday for the Presidents Day
holiday.
                                
 European Central Bank (ECB) Governing Council member
Christian Noyer said in an interview released on Sunday that
euro zone growth might be weaker than hoped as a result of
market turmoil but he saw no "big setback". [ID:nL17477884]
                                
 The dollar held steady against the yen <JPY=> as many
investors stayed on the sidelines ahead of more data this week.
                                
 "Friday's stock fall in the U.S. was relatively shallow
despite weak U.S. economic reports and that could mean
sentiment for the dollar is improving for now," said Hiroshi
Yoshida, a trader at Shinkin Central Bank.
                                
 ONLY A SMALL DECLINE
                                
 Seoul stocks <.KS11> rose 0.7 percent as shipbuilders such
as Hyundai Heavy Industries Co <009540.KS> extended gains amid
a growing perception that worries over slowing orders growth
have been priced in, while recently beaten-down lenders
advanced.
                                
 Australian shares dropped, lead by banking stocks after
Australia and New Zealand Banking Group <ANZ.AX> flagged a $200
million provision for exposure to a U.S. insurer, while Hong
Kong's Hang Seng <.HSI> dipped 0.1 percent. Shanghai <.SSEC>
stocks added 1.3 percent to trim some of 2008's hefty losses.
                                
 While stocks have been in the doldrums this year,
commodities and oil have struck new record highs, with supply
problems and buoyant Asian demand keeping prices high.
                                
 Palladium <XPD=> hit a 6 year high of $450 an ounce on
Monday, tracking sister metal platinum <XPT=>, which rallied to
a record high for the 13th successive day on acute power
problems in South Africa.
                                
 Oil <CLc1> hovered above $95 a barrel as investors weighed
the effects of a slowing U.S. economy against an escalating row
between OPEC member Venezuela and oil major Exxon Mobil
<XOM.N>.
                                
 "Oil prices are remaining at firm levels, buttressed by
perceived supply side risks," David Moore, a resource analyst
at the Commonwealth Bank of Australia, said in a research note.
                                
 Venezuelan President Hugo Chavez said on Sunday the state
could sue U.S. oil major Exxon Mobil for unpaid oil taxes, and
repeated threats to cut oil sales to the United States if
Washington attacked the South American country.
[ID:nN17645152]
 (Additional reporting by Kim Soyoung in SEOUL; Taiga Uranaka
and Satomi Noguchi in TOKYO; Fayen Wong in SYDNEY; Lewa
Pardomuan in SINGAPORE; Editing by Lincoln Feast)