GLOBAL MARKETS-Asian stocks surge as economy blues fade

                                
  (Updates prices, details)
                                
 By Rafael Nam
                                
 HONG KONG, Feb 14 (Reuters) - Asian stocks rose on
Thursday, and Tokyo's Nikkei scored its best daily gain in six
years after a surprise increase in U.S. retail sales and strong
growth in Japan's economy eased fears about a sharp global
slowdown.
                                
 Japan's benchmark Nikkei <.N225> surged 4.3 percent -- its
biggest daily percentage surge since 2002, while stocks in
South Korea <.KS11> and Taiwan <.TWII> also rose more than 4
percent.
                                
 Asian bonds slid as investors shunned safe-haven
investments, while the dollar held around a one-month high
against the yen.
                                
 Platinum broke above the $2,000 level to hit a record as
power supply problems afflict major producer South Africa, but
oil prices edged higher, extending the gains a day earlier on
the intensifying legal row between Venezuela and Exxon Mobil
<XOM.N>.
                                
 European shares were also seen higher, though not to the
extent of Asian markets. Britain's FTSE 100 <.FTSE> was
expected to open up 28 to 34 points and France's CAC <.FCHI> up
26 to 34 points, poised for gains of 0.6-0.8 percent, according
to financial bookmakers in London.
                                
 "Buoyant U.S. economic data combined with a perception that
(stock) markets have seen lows are prompting buying interest,"
said Hwang Geum-dan, an analyst at Samsung Securities in Seoul.
                                
 MSCI's measure of Asian stocks outside Japan
<.MIAPJ0000PUS> rose 3.6 percent by 0622 GMT, its biggest gain
since a 5.1 percent surge in Jan. 25.
                                
 The index had dropped more than 13 percent this year as of
Wednesday as fears of a U.S. recession and the global credit
crisis soured the outlook for Asian stocks.
                                
 Data showing a gain in U.S. retail sales last month lifted
hopes that Asia's top export market might yet skirt recession,
buoying shares such as LG Electronics <066570.KS> that depend
on U.S. consumers to drive profits. [ID:nN13334844]
                                
 Shares in Hong Kong <.HSI>, India <.BSESN> and Singapore
<.FTSTI> were up more than 3 percent each, while Shanghai
<.SSEC> added 1 percent.
                                
 Indonesian stocks <.JKSE> rose 2.1 percent after Fitch
Ratings raised the country's foreign and domestic currency debt
to BB from BB-minus, citing aggressive structural reforms.
[ID:nHKG96856]
                                
 TOO MUCH PESSIMISM?
                                
 Confidence that overseas shipments from the region will
hold up were further bolstered after Japan said its economy
grew 0.9 percent in the last quarter of the year, double the
expected rate, powered by exports and capital expenditure.
[ID:nT303662]
                                
 "The GDP data showed Japan's economy was doing better than
people thought, suggesting there had been too much pessimism
over the growth outlook," said Koji Ochiai, a senior market
analyst at Mizuho Securities.
                                
 But some economists still warned of a likely slowdown this
year in the world's second-biggest economy, with the Bank of
Japan starting on Thursday a two-day policy meeting that is
expected to lead to no changes to interest rates.
                                
 "The figures were strong but it is unlikely the Bank of
Japan will change the direction of its policy decisions," said
Yasuhiro Onakado, chief economist at Daiwa SB Investments.
                                
 The rally seen in in Nikkei benchmark stock average <.N225>
was powered by exporters such as Canon Inc <7751.T> and Honda
Motor Co Ltd <7267.T>, which also benefited from a weaker yen.
                                
 Japanese government bond futures dropped more than half a
point on the back the GDP data, with March 10-year JGB futures
<2JGBv1> down 0.49 point at 137.45.
                                
 The yen <JPY=> held steady against the dollar around 108.19
yen after the U.S. currency jumped on Wednesday.
                                
 Other economies are grappling with slower growth outlook,
with Singapore saying its economy shrank more than expected as
weak manufacturing dragged on growth. [ID:nSP166603]
                                
 However, pockets of strong internal growth and rising
inflationary pressures are putting some of the central banks in
the region in a bind at a time of slowing global demand.
                                
 Australia's jobless rate surprised by falling to a 33-year
low in January, adding to concerns the drum-tight labour market
was stoking inflation and cementing the case for an urgent rise
in interest rates. [ID:nSYD220639]
                                
 The Australian dollar <AUD=> jumped across the board on the
data, while stocks <.AXJO> rose 2.6 percent lifted by top
miners BHP Billiton Ltd <BHP.AX> and recently beaten-down
banks.
                                
 PLATINUM HITS HIGH
                                
 Certain commodity prices extended their recent climb, with
spot platinum <XPT=> rising to an all-time high of $2,002 an
ounce.
                                
 U.S. crude oil futures <CLc1> rose 16 cents to $93.43 a
barrel. Venezuela and Exxon Mobil have been mired in a legal
dispute over the South American country's takeover of a
multibillion-dollar oil project.