* Asia stocks up 2 pct, tech shares lead
* Japan's stimulus spending boosts Nikkei, hurts JGBs
* Aussie swap rates edge up despite dour jobs data
By Eric Burroughs
HONG KONG, April 9 (Reuters) - Asian stocks pushed back
towards a six-month high on Thursday as technology shares
resumed their rally, while Japan's surprisingly big stimulus
spending and signs of stabilising economic activity drove up
government bond yields.
Shares in tech-heavy Taiwan -- one of the best performing
stock markets in the world this year -- led the rise in Asia as
companies such as contract chip maker UMC <2303.T> <UMC.N>
jumped on signs of improving demand.
Japan's Nikkei share average <> gained more than 2
percent after the government announced a bigger-than-expected
stimulus package of $154 billion, or about 3 percent of GDP.
The news hurt Japanese government bonds on worries about big
supply to pay for the spending. []
The Japanese spending package will target eco-friendly
electronics, giving a boost to shares of companies such as Sony
Corp <6758.T> and Panasonic Corp <6752.T>.
But the rally in shares, worries about bond supply and
signs some central banks may have finished cutting interest
rates kept pushing up bond yields and swap rates across the
region -- complicating the efforts of central banks to keep
credit cheap.
The Bank of Korea kept rates on hold at 2 percent, a record
low, and said there was still room to cut rates, even while
saying the economy was levelling off after its rapid decline.
[]
Some economic data around the region also provided hope for
a recovery. Japanese core machinery orders posted a surprising
increase of 1.4 percent in February from the previous month,
while business surveys in China suggested the economy is
steadying.
China remains the economic engine helping offset the
collapse in exports across Asia thanks to its nearly $600
billion stimulus spending, which has spurred orders for
technology goods across Asia.
"Recent data from China has been positive relative to
expectations," said Patrick Bennett, Asia FX and rates
strategist at Societe Generale in Hong Kong.
"The positive surprises in recent Australian, Korean,
Taiwanese and Brazilian trade data have been underpinned by
improving shipments to China."
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 2 percent, snapping a two-day fall and
holding near a six-month peak of 270.08 struck at the start of
the week. On Wednesday the U.S. S&P 500 <.SPX> gained 0.7
percent.
Trading activity was limited as many investors prepare to
take time off for Easter holidays around the world. Markets in
Australia, Hong Kong and Singapore are closed on Friday.
RISING RATES
Australian swap rates were little changed despite data
showing joblessness jumped in March by the most since the 1991
recession, putting more pressure on the Reserve Bank of
Australia to cut rates further after a quarter-point trim to 3
percent earlier this week. []
"This is a very weak report and strengthens the case for
more rate cuts," said Brian Redican, senior economist at
Macquarie in Sydney.
Three-year Australian swap rates <AUDIRS> edged up slightly
to 4.013 percent, keeping the swap curve between one- and
three-year rates near its steepest levels in a decade as
investors still doubt how much more the RBA will cut rates.
The rise in interest rates helped limit the fall in the
Australian dollar, which was little changed at $0.7090 <AUD=D4>
and recovered from an initial fall to $0.7051 on the data.
Most analysts said the RBA was likely to cut rates more
deeply to limit the jump in unemployment.
Bond markets around the world have suffered from the
massive supply looming ahead, even as central banks such as the
Federal Reserve have taken the extraordinary step of buying
government bonds outright to keep long-term yields low.
Japanese government bonds were spooked as the government
said it would issue 10-11 trillion yen to pay for the stimulus
spending was about twice what analysts had expected.
The 10-year JGB yield <JP10YTN=JBTC> edged up 1.5 basis
points to 1.470 percent and hit a five-month high of 1.480
percent, extending a rise despite the Bank of Japan having
increased its monthly purchases of debt.
Elsewhere, the U.S. dollar was little changed at 99.85 yen
<JPY=> and $1.3260 to the euro <EUR=>. Crude oil prices rose 79
cents a barrel to $50.17 <CLc1> after a large draw in U.S.
energy inventories.
