* Asian stocks up 0.8 pct, near 22-month highs
* Copper, oil also gain on global growth expectations
* Euro struggles near 11-mth lows on fresh Greece worries
Reporting by Koh Gui Qing
SYDNEY, April 7 (Reuters) - Asian stocks neared 22-month
highs on Wednesday as regional investors largely shrugged off
festering worries about fiscal problems in Europe and focused
on a recovery in the world economy.
The upbeat mood about global growth was also reflected in
commodity markets, with copper prices hovering near 20-month
highs and oil prices near 18-month peaks.
While worries about Greece's ability to cut its mountain of
debt continued to weigh on the euro <EUR=>, those concerns
scarcely caused a ripple in Asian markets, with some investors
citing profit-taking as the biggest near-term threat to the
regional rally in stocks, bonds and currencies.
"Both domestic and U.S. economic fundamentals have been
showing signs of improvement, and sentiment is solid," said Kim
Yong-kyun, a market analyst at Daishin Securities in Seoul.
"Appetite to redeem funds is ripe at the index's current
level. But after a brief redemption spree the market will be
ready for a further gradual upward run," Kim said.
The S&P <.SPX> and the Nasdaq <> saw modest gains
overnight, while the Dow <> slipped 0.3 percent but
continued to eye the psychologically important 11,000-point
level. []
The MSCI's broad measure of shares in the Asia-Pacific
outside Japan <.MIAPJ0000PUS> rose 0.8 percent on Wednesday,
nearing levels last seen in June 2008.
It has gained nearly 5 percent so far this year and an
impressive 73 percent since the end of 2008, more than double
the 30 percent jump in the U.S. S&P 500 <.SPX> over the same
period as Asia rebounds from the global crisis far faster than
major Western economies.
But the Asia ex-Japan index looks increasingly ripe for a
pullback, with the 14-day relative strength index reading 83,
well above the 70 mark which points to a market being
overbought.
Hong Kong shares were the strongest risers, with the Hang
Seng Index <> up 1.3 percent as traders returned from a
five-day holiday weekend and caught up to gains elsewhere in
the world that have been fueled by upbeat U.S. economic data.
Japan's Nikkei <> was up 0.4 percent as the Bank of
Japan concluded its policy meeting by keeping interest rates
steady at 0.1 percent, as expected.
Copper <CMCU3> was strong under $8,000 a tonne after
touching a 20-month high of $8,010 the previous day.
If copper is indeed a barometer of industrial activity, as
many analysts believe given its wide usage in construction and
telecommunications, its surge since the global credit crisis
suggests the world economy is healing well.
Copper prices have bolted over 2.5 times since December
2008 and now stand just 10 percent under a record peak hit in
July 2008.
Even after the impressive surge, global miner Rio Tinto
<RIO.L> <RIO.AX> believes the rally has wings due to a
shortfall in supply. http://link.reuters.com/puw66j
EURO SAGS AGAIN
The struggling euro <EUR=> took another knock from worries
around Greece's fiscal problems. The common currency was soft
at $1.3388, within sight of an 11-month trough of $1.3265 hit
late in March.
Hourly charts show if the euro breaches $1.3342, which
marks the 76.4 percent retracement level of its ascent from
$1.3265 to $1.3591, it may force it to retest levels around
$1.3260.
The latest wave of selling, which traders said was led by
macro hedge funds, was set off by reports that Greece wants to
amend an EU-IMF safety net deal set up late last month to help
pay for its debts in an emergency.
Although Greece denied the reports, the market paid no heed
and continued to bet on Athens having troubles cutting its debt
burden, even as its borrowing costs mount.
Investors demanded a yield of close to 7.5 percent for
buying 10-year Greek bonds <0#GRBMK=TWEB>. That is nearly 100
basis points above levels seen last week, and over 400 basis
points above German Bunds <0#DEBMK=TWEB>, the biggest premium
since Greece joined the euro in 2001.
(Additional reporting by Jungyoun Park in SEOUL)
(Editing by Kim Coghill)
