RPT-GLOBAL MARKETS-Asia stocks cling to gains, data spurs dollar

                                
 * Toyota earnings, outlook lifts stocks in Japan
                                
 * Dollar spurred by solid U.S. services sector data
                                
 * Caution prevails ahead of Friday's main U.S. jobs data
 (Repeats to more subscribers)
                                
 By Umesh Desai
                                
 HONG KONG, Aug 5 (Reuters) - Asian stocks rose on Thursday,
buoyed by solid earnings from major exporters such as Toyota
and chipmaker UMC, while upbeat U.S. economic data lifted the
beaten-down dollar and eased some concerns about its recovery.
                                
 European markets were also expected to rise following
stronger-than-expected growth in the U.S. services sector,
though traders were cautious ahead of U.S. non-farm payrolls
data on Friday. [ID:nN04224566]
                                
 Financial bookmakers expected Britain's FTSE 100 <.FTSE>,
Germany's DAX <.GDAXI> and France's CAC-40 <.FCHI> to open as
much as 0.4 percent higher, with investors also eyeing central
bank meetings later in the day.
                                
 Both the European Central Bank and the Bank of England are
expected to keep interest rates at record lows as they wait for
more evidence that their economic recoveries are taking hold.
[ID:nLDE6710R] [ID:nLDE6721BV]
                                
 In Japan, strong results from Toyota Motor Corp <7203.T>
pushed the Nikkei average <.N225> 1.7 percent higher, reversing
much of Wednesday's 2.1 percent drop when investors worried
that exports would suffer as the yen rallied towards 15-year
highs against the dollar.
                                
 Toyota climbed more than 3 percent before losing some steam
after reporting its biggest operating profit in two years and
lifting its forecasts. [ID:nTOE67203Q].
                                
 The MSCI index of Asia Pacific ex-Japan stocks
<.MIAPJ0000PUS> edged up 0.1 percent, on the heels of a 2.3
percent rise this week to a three-month high. Consumer staples
<.MIAPJCS00PUS> and resources <.MIAPJMT00PUS> outperformed.
                                
 "We had four weeks of fantastic markets, so some correction
is to be expected," said Khiem Do, head of the Asia multi-asset
group at Baring Asset Management, which oversees $50 billion.
                                
 "A few months ago, investors were drumming up fears of a
double dip recession but second quarter results were quite
good, so analyst are revising their numbers up again. A see-saw
pattern is developing and seen continuing over the next few
months."
                                
 In Taiwan, United Microelectronics Corp (UMC) <2303.TW>,
the world's second-biggest contract chipmaker, rose 0.7 percent
after it reported strong quarterly earnings and an increase in
its 2010 capital spending plans. [ID:nTOE67102N]
                                
 CURRENCIES, BONDS
                                
 The dollar index <.DXY> was steady against a basket of
other major currencies after a rare rally on Wednesday when the
U.S. services data sparked a bout of short-covering.
                                
 Against the yen, the dollar was down 0.1 percent on the day
at 86.19 yen <JPY=>, after rising to 86.29 from an eight-month
low of 85.32 yen hit on Wednesday.
                                
 The yen's pullback against the dollar and stronger Tokyo
stocks prompted traders to take profits on Japanese government
bonds after a rally that took the benchmark 10-year yield
<JP10YTN=RR> to a seven-year trough below 1 percent on
Wednesday. The yield climbed 1.5 basis points to 1.010 percent
on Thursday.
                                
 Optimism over the U.S. services data has offset to some
extent expectations the U.S. Federal Reserve might take further
steps into quantitative easing at its policy meeting next week,
undermining safe-haven U.S. Treasuries and JGBs.
                                
 "Not only is the services sector - the vast bulk of most
modern economies - expanding, it is doing so at a faster pace,"
said Adam Carr, a senior economist at broker ICAP, referring to
the U.S. data.
                                
 "Commodities are telling us that this global recovery has
reasonable momentum," he said, adding that iron ore prices had
risen around 20 percent in the past month, while copper was up
16 percent and wheat 40 percent.
                                
 Commodity-linked currencies such as the Australian and
Canadian dollars also remained strong.
                                
 The Aussie <AUD=> hovered around three-month highs against
the dollar. It was firm at $0.9158, off the day's high of
$0.9182. The dollar slipped to its lowest in six weeks against
the Canadian currency <CAD=D4>.
                                
 But another commodity-linked currency, the New Zealand
dollar, fell after local jobless data proved weaker than
expected, prompting markets to scale back expectations for more
interest rate rises this year. [ID:nSGE6720PV]
                                
 The currency, which normally tracks commodity trends, fell
0.7 percent to $0.7300 <NZD=D4>.
                                
 Aggressive bets are also coming off ahead of the U.S. jobs
data on Friday. The report is expected to show a drop of 65,000
in July as Census jobs dried up.
                                
 U.S. companies hired more workers in July than forecast,
payroll-processing company ADP said on Wednesday, but analysts
said the gains were too slow to reduce stubbornly high
unemployment or give a significant boost to the economy.
[ID:nN04224566].
                                
 Oil prices fell for a second straight day, moving towards
$82 a barrel, crimped by the dollar's strength and after U.S.
stocks of gasoline and distillate fuels, including diesel,
added to a string of gains.
 (Additional reporting by Wayne Cole in SYDNEY)
 (Editing by Kim Coghill)