* Bank shares climb, focus on U.S. accounting rule change
* Market sees silver lining in U.S. data, hopes for best
* Euro up slightly, awaiting ECB views on quantitative
easing
* Markets waiting for news from meeting of G20 leaders
By Kevin Plumberg
HONG KONG, April 2 (Reuters) - Asian stocks shot to a
three-month high on Thursday, building a three-day rally on
hopes the U.S. economy has bottomed, while the euro was firm
before a European Central Bank meeting at which rates may be
cut for the last time in a while.
European stock markets were expected to open as much as 2.9
percent higher, according to financial bookrunners, with
investors looking for action from G20 leaders who are meeting
in London.
The financial and materials sectors were the biggest boosts
to Asian stocks outside Japan. While in Japan, Honda Motor Co
<7267.T> shares surged 11 percent and Toyota Motor Corp
<7203.T> rose 5.5 percent as investors bet General Motors
<GM.N> could avoid a messy failure.
That combined with a pickup in new orders according to a
U.S. survey of manufacturing activity and the highest volume of
home loan applications since mid January supported a view that
the worst for the global economy may have passed.
However, reports showing the world's biggest economy
continued to bleed jobs heavily in the last few months tempered
optimism about when consumer demand for Asia's exports would
recover, containing gains in commodities.
Furthermore, leaders at a G20 summit were divided on the
need for more stimulus to support efforts underway already.
"U.S. data continues to come in better than anticipated. On
the other hand, uncertainty continues over the fate of U.S.
automakers, and signs of discord between G20 leaders are
deepening," Dariusz Kowalczyk, chief investment strategist with
SJS Markets in Hong Kong, said in a note.
Japan's Nikkei share average <> rose 4.4 percent.
Honda shares rose to their highest level in over five months
and Toyota stock hit a four-month peak.
Reflecting a bullish tone in financial stocks, Mitsubishi
UFJ Financial Group <8306.T>, Japan's top bank, jumped 6.7
percent to provide one of the strongest supports to the Nikkei.
Bank stocks were underpinned ahead of expected approval
later on Thursday of a relaxation in some U.S. accounting
standards, which could lead to a bump in banks' bottom lines.
[]
HSBC stock <0005.HK> climbed nearly 9.5 percent to lead
Hong Kong's Hang Seng index <> up 5.3 percent.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> firmed by 4.4 percent, gaining for a third day
and up near the highest level since early January. The biggest
boosts for the index were financials and materials stocks.
The Nikkei has been an outperformer. A 15 percent gain in
the Nikkei since March has outpaced the 11 percent rise in the
MSCI all-country world index <.MIWD00000PUS>..
WAITING FOR THE ECB
The euro inched up in quiet trade with dealers waiting for
the outcome of a European Central Bank meeting. The central
bank is widely expected to cut its policy rate to a record low
of 1 percent from 1.5 percent.
Investors are also looking for hints that show to what
extent ECB policymakers are willing to dive into quantitative
easing -- vast expansion of a central bank's balance sheet to
support growth. Both the Bank of England and the Federal
Reserve are already well down that road.
"The markets are pretty much in limbo ahead of the G20 and
the ECB. So I wouldn't expect much in the way of volatile moves
ahead of them," said Sue Trinh, senior currency strategist at
RBC Capital Markets in Sydney.
The euro was at $1.3276 <EUR=>, up around 0.2 percent from
late New York, though near Monday's two-week low of $1.3113.
The euro was up 0.4 percent at 131.11 yen, but sellers have
prevented it from advancing above 132 yen for the last few
days.
The Australian dollar <AUD=> continued to draw support from
rallying global equity markets and hopes demand for raw
materials will slowly return. The currency was up 0.6 percent
at $0.7035, closing in on last week's two-month high above
$0.7090.
U.S. crude futures <CLc1> rose 1.2 percent to near $49 a
barrel as further supply cuts by OPEC in March offset U.S. data
showing a higher-than-expected rise in crude stocks.
Government bond markets continued to be ruled by supply
concerns. The yield on the 10-year Japanese government bond
<JP10YTN=JBTC> briefly touched a 3-1/2-month high after the
Ministry of Finance disappointed some investors by setting a
lower-than-anticipated coupon for an upcoming auction.
U.S. Treasuries were under modest pressure as stock markets
climbed, after longer-maturity bonds rose overnight on the
Fed's bond buyback schedule.
The 10-year yield <US10YT=RR> edged up to 2.68 percent from
2.65 percent on Wednesday.
