* MSCI Asia (ex Japan stocks) snaps 6 weeks of gains
* Gold shoots over $910 on China stockpile build
* Yen strengthens with uncertainty rife on the global
economy
By Dan Burns
HONG KONG, April 24 (Reuters) - Earnings disappointments
drove Asian stocks lower on Friday, helping to snap the
region's longest streak of weekly gains in 18 months, while
gold shot to a three-week high above $910 an ounce after China
revealed it now has the world's fifth-largest stock pile.
The move away from equities helped Japan's yen, which
gained broadly, rising to a four-week high against the dollar.
Japan's Nikkei average <> fell 1.6 percent,
underperforming the broad regional downdraft, which saw the
MSCI index of Asia Pacific <.MIAPJ0000PUS> shares outside
Japan fall 0.4 percent on the day. Hong Kong's Hang Seng index
<> fell 0.6 percent.
The pan-Asian index slid 0.9 percent for the week, with
edginess about the financial sector ahead of earnings and the
U.S. government's bank stress tests helping fuel risk aversion.
The drop brought to an end its longest weekly winning
streak since an eight-week run that ended in October 2007. The
index had gained more than 30 percent in the latest six-week
run.
In Japan, mobile phone operator KDDI <9433.T> sank on
disappointing earnings, while steelmaker JFE Holdings <5411.T>
lost ground after not issuing an annual earnings forecast.
Auto makers were also on the defensive on news that U.S.
automaker Chrysler was readying a bankruptcy plan with one week
to go before its government-imposed deadline to forge a deal
with Italy's Fiat <FIA.MI>. []
"If Chrysler were to really go bankrupt, that would
increase fears about a GM bankruptcy," said Fumiyuki Nakanishi,
manager at SMBC Friend Securities. "The economic outlook in the
United States is also still poor, as can be seen with dismal
existing homes sales data."
European shares, however, looked set to buck the trend and
track overnight gains on Wall Street. Futures on major European
indexes suggested rises of nearly 1 percent when they open.
GOLD GLITTERS
Spot gold shot to as high as $911.80 an ounce after Xinhua
news agency quoted Hu Xiaolian, head of the State
Administration of Foreign Exchange (SAFE), as saying the
country's reserves had risen by 454 tonnes since 2003 and were
now the fifth biggest in the world. Only six countries holding
more than 1,000 tonnes.
"They are increasing their gold holdings because they are
worried about the dollar," Peter McGuire, managing director at
Commodity Warrants Australia, said. "I know if I held $2
trillion in U.S. treasuries I'd want to hedge it."
The dollar was weaker, particularly against the yen. The
dollar fell more than 1 percent against the Japanese currency,
last trading at 96.95, down from 98.05 late in New York. It was
the first since March 30 it has dropped below 97 after topping
the 101 level a little over two weeks ago.
"Among those negative factors, risk aversion is increasing
and the yen is the beneficiary," said Toru Umemoto, chief FX
strategist Japan at Barclays Capital.
Commodities such oil edged lower after reports overnight
reflected no change in deteriorating U.S. housing and labour
market conditions.
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.
U.S. crude prices <CLc1> slipped 0.9 percent, or 45 cents,
to $49.17 a barrel after a late rally on Wall Street overnight
led oil to close higher.
(Additional reporting by Kevin Plumberg in Hong Kong and
Elaine Lies in TOKYO)
