* Asia stocks up 1.1 pct, trade subdued before Fed/ECB
tender
* Dollar steady after slide, oil gives up gains
* JGB 10-yr yield hits 2-1/2-mth low
* Japan export data show global recovery a long one
(Repeats to additional subscribers)
By Eric Burroughs
HONG KONG, June 24 (Reuters) - Asian stocks inched up on
Wednesday from a one-month low hit the previous day while the
dollar drifted, with investors bracing for a Federal Reserve
decision and any signs the central bank is worried about the
jump in U.S. bond yields.
The Fed is widely expected to keep interest rates on hold
at a record low and keep its planned debt purchases unchanged,
so the focus is on whether the central bank tweaks its
statement to rein in a slide in U.S. Treasuries that threatens
the economy's budding recovery. []
Benchmark Treasury yields surged to an eight-month peak
above 4 percent earlier in the month, pushing up mortgage rates
and offsetting the Fed's efforts to help the economy by buying
hefty amounts of government and mortgage-related debt.
Investors have started to question how the Fed will step
back from its array of emergency programmes launched to stem
the financial crisis and whether its use of quantitative easing
will stoke inflation in the months ahead.
"The Fed will likely attempt to assure markets that it will
have a credible exit strategy when the time is right," said
analysts at Calyon in a note to clients.
The dollar found its footing after a sharp slide the
previous day, the latest volatile move across markets in the
waning days of the second quarter.
Government bonds also have recovered on building doubts
about the strength of any global economic recovery. Japan's
10-year government bond yield hit a 2-1/2-month low.
Market players are also keeping a close eye on the results
of a special one-year unlimited funding operation the European
Central Bank is offering to banks, looking for signs of
financial strain in the euro zone.
The MSCI index of Asia-Pacific shares outside Japan
<..MIAPJ0000PUS> climbed 1.1 percent, steadying after hitting a
one-month low the previous day.
Taiwan's TAIEX index <> was the best performer in
Asia, jumping 1.9 percent as technology shares led gains across
sectors.
On Tuesday, the U.S. S&P 500 <.SPX> edged up 0.2 percent
after having started the week with a 3 percent slide.
Japan's Nikkei average <> climbed 0.2 percent,
underpinned by a rise in energy shares such as Inpex <1605.T>
after a jump in oil prices the previous day.
The market shrugged off Japanese data showing exports
tumbled 40.9 percent in May from a year earlier, underscoring
that any recovery in global trade is going to be a long one.
[]
Crude oil surrendered some of the gains in Asia, slipping
78 cents a barrel to $68.46 <CLc1>.
Despite the slight gains in stocks, Japanese government
bonds extended their winning streak as domestic portfolio
managers have reinvested funds from $105 billion of maturing
bonds this month, analysts said.
A solid auction of two-year Treasuries on Tuesday also
helped boost JGBs.
The 10-year JGB yield <JP10YTN=JBTC> dropped 2 basis points
to 1.385 percent, a 2-1/2-month low.
In currencies, the dollar edged up 0.3 percent to 95.55 yen
<JPY=> and was little changed versus the euro at $1.4085
<EUR=>.
(Editing by Kazunori Takada)
