* Fed stance keeps risk appetite intact
* Dollar hits fresh three-year lows vs basket of currencies
* U.S. crude rises to 2-1/2 year peaks, gold at all-time
highs
* MSCI gauge of Asian stocks excluding Japan reaches 3-yr
peak
By Ian Chua
SYDNEY, April 28 (Reuters) - The dollar skidded to
three-year lows on Thursday, pushing U.S. crude oil to a 2-1/2
year high, while Asian stocks rose as investors bet that the
easy U.S. monetary policy will continue to drive money to
riskier assets.
The Bank of Japan (BOJ) also maintained its ultra-loose
monetary policy, in moves that are likely to see investors
continue using both the dollar and yen as funding currencies to
buy higher-yielding assets, commodities and equities.
"With the prospect of ultra easy monetary policy continuing
for the foreseeable future in the world's largest economy,
traders are feeling more confident about holding the bullish
view and risk appetite is expected to be high," said Jonathan
Sudaria, a night dealer at Capital Spreads in London.
Japan's Nikkei average rose 1.6 percent, while
stocks elsewhere in Asia gained 0.6 percent,
having earlier added more than 1 percent to reach a three-year
peak.
Japanese markets will be shut on Friday and will reopen on
Monday, ahead of more holidays next week.
Earnings from the likes of Honda Motor were due
after the market close.
"If earnings continue to impress the market, the Nikkei may
rise further," said Makoto Kikuchi, chief executive officer at
Myojo Asset Management.
Another indication of the hefty demand for higher-yielding
assets and exposure to fast-growing Asian markets was the
response to Indonesia's $2.5 billion medium-term note offering
this week, which was nearly 3 times oversubscribed, with half
the issue snapped up by U.S. investors.
European stock index futures rose in early trade, pointing
to a higher open, while gains in U.S. stock index futures <SPc1>
indicated the rally on Wall Street may not be over yet.
Deutsche Bank <DBKGn.DE> will be in focus after the German
bank posted an 18 percent rise in quarterly net profit.
[]
DOLLAR HAMMERED
The dollar index , which tracks its performance
against a basket of major currencies, fell to as low as 72.871
-- a level not seen since July 2008. It last stood at 72.993.
Dealers said several central banks in Asia were spotted
buying the greenback to check sharp gains in their currencies.
The euro rose to a 16-month high of $1.4881 , further
spurred by stop-loss buying after a breach of option barriers
around $1.4800, while the Australian dollar touched a post-float
high of $1.0948 .
In the commodities market, U.S. crude <CLc1> scaled a 2-1/2
year peak of $113.70 a barrel, and gold futures <GCcv1> raced to
a record high at $1,534 an ounce. Copper gained more
than 1 percent to around $9,440 a tonne.
U.S. Treasury yields were a touch lower, having risen on
Wednesday as the market made room for an upcoming seven-year
supply. The two-year yield slipped 1.2 basis points
to 0.6368 percent.
(Additional reporting by Masayuki Kitano in Singapore and Ayai
Tomisawa in Tokyo; Editing by Ramya Venugopal)
