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* Asian stocks buoyed by U.S. jobs data but gains modest
* Asian currencies kept in check as U.S. dollar fluctuates
* Oil regains ground after early losses
By Susan Fenton
HONG KONG, Aug 10 (Reuters) - Asian stocks made modest
gains on Monday after better-than-expected U.S. jobs data
raised hopes the United States can lead the world out of
recession, but Asian currencies were kept in check by a
fluctuating U.S. dollar.
The U.S. jobs report on Friday, which showed
fewer-than-feared job losses in July and a surprise dip in the
unemployment rate [], underpinned equities across
Asia.
Shares in Japan reached a 10-month closing high <> as
the U.S. jobs data encouraged investors, but Japanese
manufacturers forecast a sixth straight quarterly fall in
machinery orders in July-September, a leading indicator of
capital spending. That led some economists to suggest that the
Bank of Japan's view that the economy will improve later this
fiscal year was too rosy.
"If final demand continues to be very weak and if it is
difficult to see when companies will recover, then it will take
a long time for the BOJ to seek an exit strategy, including
normalising interest rates," said Junko Nishioka, chief Japan
economist at RBS Securities in Tokyo.
Major European stock futures <STXEc1> were down 0.4 percent
while U.S. equity futures <SPc1> were 0.07 percent lower.
The MSCI Index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> was up 0.5 percent but still off 11-month peaks
seen last week. The index has surged 78 percent since a rebound
in global equities began on March 9.
Shares of Japanese resin maker Mitsubishi Rayon <3404.t>
soared 19.8 percent on a report the company would be acquired
by Japan's largest chemical company Mitsubishi Chemical
Holdings <4188.T>, which jumped 4.7 percent [].
Japan's top tyre maker Bridgestone <5108.T> posted a
second-quarter operating loss but its shares surged 5.6 percent
as the company raised its full-year profit forecast
[].
In Australia, a rise in demand for home loans in June for a
ninth straight month reinforced the view that a strengthening
housing market is driving economic recovery. The benchmark
S&P/ASX 200 index <> was flat but coal shares rallied on a
likely takeover of Australian coal miner Felix Resources Ltd
<FLX.AX> by China's Yanzhou Coal <1171.HK> [].
Those shares were suspended.
Shares in global commodities miner Rio Tinto Ltd <RIO.AX>,
however, fell 3.3 percent after China stepped up its espionage
allegations against the company.
RATE SPECULATION
The U.S. dollar fluctuated after jumping more than 1 percent
on Friday on the jobs data. The dollar index <.DXY>, which
measures the U.S. currency against a basket of others, was 0.11
percent lower at 78.976.
While the jobs data has led to speculation U.S. interest
rates may rise as soon as later this year, analysts expect the
U.S. Federal Reserve to dampen talk of an early rate rise after
its two-day meeting ends on Wednesday. []
"If interest rates were to rise in this situation, that may
pour cold water on the recovery," said Hiroshi Maeba, deputy
managing director of forex trading at Nomura Securities in
Tokyo.
Those expectations put pressure on U.S. Treasuries while
Japanese government bonds were depressed by the rise in
Japanese stocks.
Oil prices meanwhile recovered from an early morning slide
to regain $71 <CLc1> but were subdued after OPEC President Jose
Botelho de Vasconcelos, signalled on Sunday that oil producers
were unlikely to cut output when they meet next month, saying
prices were not bad at current levels [].
Investors will be looking for more clues on the U.S.
economic outlook in a flood of reports this week including
chain store sales on Tuesday, U.S. trade data for June on
Wednesday and July retail sales on Thursday. July consumer
prices, industrial production and consumer sentiment for August
will all be released on Friday. <ECONUS>
Amid persistently weak consumer demand in major Western
markets, many export-reliant Asian economies have pinned their
hopes on a rapid recovery in China.
Chinese Premier Wen Jiabao said over the weekend that
fiscal and monetary stimulus would remain in place, amid some
concerns that asset bubbles may be forming as economic growth
snaps back. [].
Expectations that a barrage of economic data out of China
on Tuesday will affirm the world's third-biggest economy is on
a firm recovery path helped Hong Kong's Hang Seng Index <>,
which was up 2.1 percent. But investors in mainland China were
cautious and shares in Shanghai closed down 0.3 percent.
(Additional reporting by Kaori Kaneko and Tetsushi Kajimoto in
Tokyo; Editing by Tomasz Janowski)
