* Asian stocks gain for 2nd day on econ hopes, tech rally
* Oil continues rise above $41 barrel on production cut
hopes
* Regional bonds fall as risk aversion reduced
* Major currencies in tight ranges ahead of BOE, ECB
meetings
By Rafael Nam
HONG KONG, Feb 4 (Reuters) - Asian shares rose for a second
consecutive session on Wednesday on tentative signs of an
improving outlook for the battered global economy, while oil
gained ground in anticipation of more production cuts.
Regional government bonds, including Japanese debt,
retreated amid the revival in risk-taking, while major
currencies remained in tight ranges.
The mood was spurred by data showing activity in China's
manufacturing sector may be bottoming out and a surprise rise
in U.S. pending home sales, providing hope for two economies
critical to a recovery in Asia's exports.
Investors also welcomed the U.S. Federal Reserve's
extension of its programme to extend dollars to markets
worldwide, and signs the U.S. Senate is moving forward on a
package intended to revive growth in the world's largest
economy.
"There's some hopes that the United States will reach
agreement on a package, but the benefits of this are limited
right now since a lot remains unclear," said Noritsugu
Hirakawa, a strategist at Okasan Securities.
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> advanced 1.3 percent as of 0315 GMT, led higher
for a second day in a row by technology shares such as South
Korea's Samsung Electronics <005930.KS> and Japan's TDK Corp
<6762.T>.
Asian shares are still down nearly 8 percent for the year
after a tough January, though the MSCI index remains about 18
percent above five-year lows hit in November.
Investors got a much needed boost from data on Wednesday
showing China's official purchasing managers' index rose, even
though it remained below a reading of 50 that divides expansion
from contraction. []
Optimism the U.S. housing market -- at the centre of the
worst financial crisis since the Great Depression -- may be
close to reaching a bottom also helped after data showed a
surge in pending sales of previously owned U.S. homes in
December. []
Data in Australia meanwhile showed retail sales surged in
December as government hand-outs, lower borrowing costs and
falling petrol prices boosted consumer spending [].
Japan's Nikkei average <> rose 2.2 percent, while
markets in South Korea <>, Hong Kong <> and Shanghai
<> advanced 1-2 percent each.
Indexes in Taiwan <> and Singapore <.FTSTI> posted
more modest gains, while Australian shares <> were dragged
down 1 percent by a slump in shopping mall owner Westfield
Group <WDC.AX>, which is in the midst of raising capital.
FED PROVIDES DOLLARS
Policy makers worldwide are reaching for measures to revive
their economies, including slashing interest rates, boosting
spending and cutting taxes.
Among the most closely watched is the passage of a U.S.
stimulus and tax cut package. U.S. Senate Republicans on
Tuesday offered their own, cheaper version than the one for
more than $800 billion sought by U.S. Democrats.
[]
News that the U.S. Federal Reserve will extend currency
swap lines with 13 central banks worldwide by six months
[] also lifted sentiment in Asian markets.
U.S. crude futures <CLc1> advanced 27 cents to $41.05 a
barrel, after oil-producing cartel OPEC said it may deepen
record oil supply cuts in an attempt to boost prices. Oil has
dropped sharply since hitting a record near $150 a barrel last
year. []
The U.S. dollar edged up against a basket of currencies,
recovered some losses made the previous session when the
pending homes sales figures and stimulus plans eased risk
aversion.
Analysts expect tight ranges among the world's major
currencies ahead of rate decisions by the Bank of England and
the European Central Bank on Thursday and the first monthly
U.S. employment report of the year due out on Friday.
The British central bank is expected to cut rates again
Thursday, but the ECB is seen keeping rates on hold until
March.
The dollar inched up 0.1 percent to 89.50 yen <JPY=> from
late U.S. trading on Tuesday, while the euro slipped 0.4
percent to $1.2983 <EUR=> and dipped 0.3 percent to 116.17 yen
<EURJPY=R>.
The South Korean won <KRW=> strengthened to 1,377.5/8.1 per
dollar, compared with Tuesday's domestic close <KRW=KFTC> of
1,389.5, helped by the Fed's decision to extend its programme
to make dollars available to the country's central bank.
Safe-haven assets such as regional bonds fell as investors
shifted towards riskier equities.
Japanese government bond March futures fell 0.28 point to
138.47 <2JGBv1>, almost matching a 2-1/2-month low of 138.46
hit on Tuesday, when the Bank of Japan unveiled its plan to buy
up to 1 trillion yen ($11.2 billion) worth of shares until
April 2010.
The benchmark 10-year yield hit a 1-
