* Asia shares hit 14-mth high after strong U.S. retail
sales
* Rising risk appetite sends U.S. dollar to 14-month low
* Oil rises to one-year high near $76
* Aussie, NZ currencies jump as rate rise speculation grows
* Korea, Taiwan, Philippines step in to curb currencies
By Susan Fenton
HONG KONG, Oct 15 (Reuters) - Asian shares rose to 14-month
highs on Thursday after upbeat U.S. retail sales and earnings
reports prompted a shift to riskier assets, pushing the U.S.
dollar to a 14-month low and prompting Asian governments to
step in to curb currency strength.
European stocks <> were up 0.4 percent shortly after
opening, while the euro <EUR=> earlier hit an 14-month high of
$1.4961, as the U.S. dollar slid to fresh 14-month lows against
a basket of currencies <.DXY> amid rising risk appetite.
U.S. equity futures <SPc1> were flat.
Shares in Japan jumped nearly 2 percent, helped by gains in
tech shares and other exporters who might benefit from rising
U.S. demand.
Stocks in the rest of Asia firmed to their highest levels
since last August.
Positive retail sales and earnings data from the United
States -- including from Intel Corp <INTC.O> and JP Morgan
Chase & Co <JPM.N> -- which had pushed the Dow Jones <.DJIA>
above 10,000 points on Wednesday for the first time in a year
-- set the scene for the Asian rally.
Growing confidence that the United States can fuel a global
economic recovery encouraged investors to buy higher-yielding
currencies, including the Australian and New Zealand dollars,
which were additionally boosted by rising expectations for
interest rate hikes.
Authorities in Taiwan, Korea and the Philippines were
spotted buying U.S. dollars to curb strength in their
currencies. Several Asia countries have intervened in recent
weeks to cap their currencies and keep them competitive in
export markets.
The Aussie dollar <AUD=> hit a 14-month high at $0.9224 to
the U.S. dollar after the Reserve Bank of Australia pointed to
more rate rises. Last week, it became the first central bank in
the Group of 20 to tighten policy as the global financial
crisis eases. []
"We have said that, over time, interest rates will need to
be adjusted towards a more normal setting as the economy
recovers," RBA Governor Glenn Stevens said in a speech.
In New Zealand, data showing stronger-than-expected
inflation raised the likelihood of a rise in interest rates in
coming months and sent the Kiwi <NZD=> to a 15-month high of
$0.7489.
The flow of cash into riskier assets has knocked the U.S.
dollar, a trend that pushed the currency to a 14-month low of
75.237 against a basket of currencies <.DXY>.
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> rose 1 percent to 413.34, its highest level
since August last year. The Thomson Reuters index of regional
shares <.TRXFLDAXPU> was up 0.3 percent.
SONY SURGES
Thailand missed out on the Asian share rally as its
benchmark index <> skidded more than 5 percent in a second
day of heavy foreign selling on concern over the king of
Thailand's health, despite official comments that he was
improving. [].
Still, Thai stocks have rallied more than 50 percent this
year.
ING Group, which has US$500 billion in assets under
management globally, said it was overweight Thailand,
Singapore, India and Indonesia in Asia.
In a survey by ING Investment Management, released on
Thursday, 83 percent of Asian investors said they expected the
region's stock markets to stay at current levels or rise in the
fourth quarter.
"Looking at PE, valuations in Asia are now a bit higher
than their five-year average," said Nicholas Toovey, regional
head of equity at ING Investment Management. "But in this part
of the economic recovery, when we expect higher than usual
earnings (growth), we'd recommend either holding or buying
stocks at these levels."
Expectations of healthy global growth prodded NYMEX crude
futures <CLc1> to a one-year high near $76 a barrel after U.S.
industry data showed a surprise drop in inventories.
Gold <XAU=> held above $1,060 an ounce, just below
Wednesday's record high above $1,070.
Tokyo's Nikkei average <> rose 1.8 percent to
10,238.65 helped by auto maker Honda Motor Co <7267.T>, which
gained 1.8 percent and Sony Corp <6758.T>, which leapt 3.6
percent.
Shares in Hong Kong <> were up 0.9 percent and those in
Shanghai <> increased 0.5 percent.
China doused speculation that the country's accelerating
economic rebound would revive strong upward pressure on the
yuan <CNY=CFXS>, saying one-way bets on China's currency were
diminishing. [].
(Additional reporting by Anirban Nag in SYDNEY; Editing by
David Fox)
