* MSCI Asia Pacific ex Japan stocks index up for 6th day
* Data point to long, deep recession in Japan
* Indian stock market expected to open later on Friday
By Kevin Plumberg
HONG KONG, Nov 28 (Reuters) - Asian stocks edged up in
quiet trade on Friday, as investors sifted through the remains
of a record sixth consecutive month of falls for global equity
markets, hoping to find some bargains as 2008 winds down.
Regional shares tacked on a sixth day of gains, though
optimism was in short supply with deteriorating economic
prospects for China and Japan as well as simmering political
risks in India, where fighting raged on in Mumbai, and
Thailand, where the prime minister has declared a state of
emergency.
The yield on the benchmark 10-year U.S. Treasury note was
near its lowest in 50 years, below 3 percent, with bond dealers
anticipating a deep and lasting U.S. recession. The cost of
insurance against a U.S. government debt default, an
unthinkable event, shot to record highs on Thursday, as concern
grows about the scale of programs to prop up the financial
system.
Oil prices fell toward $53 a barrel, ahead of a meeting of
OPEC ministers in Cairo to discuss the possibility of more
supply cuts as global recession reduces energy demand.
"On a range of measures, there is undoubted value to be
found in many of the worlds equity markets," said Sarah Arkle,
chief investment officer with Threadneedle Asset Management.
"However, with economic and earnings expectations in a
state of flux, there are also significant risks and translating
valuation metrics into regional preferences is highly dependent
on earnings and dividend inputs," Arkle said in a note on the
outlook for 2009.
Japan's Nikkei share average <> rose 0.6 percent with
some stocks in the technology sector, such as Kyocera Corp
<6971.T>, pushing the index higher for a second day.
However, shares of Panasonic Corp <6752.T>, the world's
largest plasma TV maker, dove 11 percent after it slashed its
net profit forecast for the current business year by 90
percent.
The MSCI index of Asia Pacific stocks outside of Japan
<.MIAPJ0000PUS> climbed 1.3 percent, putting in on track for a
sixth day of gains. The index was still locked in a steep
downward trend that has knocked it down about 57 percent so far
this year.
Hong Kong's Hang Seng index <> rose 2 percent, led by
China Mobile <0941.HK>, whose recent gains and been lower than
the broader market.
POLITCAL RISK
In Mumbai, Indian commandos were in the middle of
confronting militants holding foreigners hostage, but the
country's market regulator had asked the stock exchanges to be
ready to start trading on Friday.
India's central bank said trading in forex, money and bond
markets would resume trading on Friday.
Militants resisted police forces in three pockets of the
financial capital, more than 24 hours after coordinated attacks
left at least 119 people dead and more than 300 wounded.
[]
Meanwhile, in Thailand, escalating tension with
anti-government protestors, who have besieged Bangkok's two
airports, and security forces may weigh on the stock market and
currency for a second day.
"The outcome will likely be that domestic confidence
remains subdued and, given the expected impact of the global
recession, the baht will likely weaken versus the U.S. dollar
in coming months," said Sebastien Barbe, senior economist at
Calyon in Hong Kong.
Investors are likely to keep an eye out for indications on
how what is traditionally the busiest U.S. shopping day of the
year pans out. Some retailers have already offered heavily
discounted prices to shoppers to lure them ahead of what is
expected to be a disastrous holiday sales season.
[]
U.S. light crude for January delivery <CLc1> fell to $53.61
barrel by 0315 GMT, having fallen by more than $1 earlier.
The yen rose against the U.S. dollar in thin trade as fears
of a long and deep global recession continued to highlight the
relative safety of the low-yielding Japanese currency.
Japanese industrial production slid more than expected in
October and manufacturers warned of record cuts ahead
[], lifting Japanese government bond prices
<2JGBv1>.
The dollar traded at 95.27 yen <JPY=>, down slightly from
late European trade on Thursday.
The euro edged down to around 122.80 yen <EURJPY=R> and was
nearly flat against the dollar at $1.2890 <EUR=>.
The benchmark 10-year U.S. Treasury yield <US10YT=RR> was
at 3 percent, having plummeted 85 basis points in the last two
weeks.
