* Yen slips as money moves to higher yielding currencies
* 7-in-10 S&P 500 companies so far beat earnings estimates
* Oil stays above $63 though petrol stockpiles are key
* Rescue of U.S. lender CIT Group could buoy mood further
(Repeats to more subscribers)
By Kevin Plumberg
HONG KONG, July 20 (Reuters) - Shares in South Korea and
Australia rose on Monday while the yen fell, with increasing
hopes for strong company earnings encouraging a move into
riskier, higher-yielding assets.
A last-minute $3 billion rescue of CIT Group Inc <CIT.N> by
a group of bondholders that would help the financial firm avoid
bankruptcy was viewed as good for sentiment. CIT lends to
nearly one million small and mid-sized U.S. businesses.
[]
"The CIT news is positive...but we need to wait how the
financing plans unfold, and how investors in the United States
react to it," said Kim Seong-bong, a market analyst at Samsung
Securities in Seoul.
Japan's markets were shut for a public holiday, keeping
trading volumes relatively low.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> edged up 0.7 percent, on track for a fifth
consecutive session of gains.
South Korea's KOSPI <> rose 1.9 percent to a near
10-month high, while Australia's S&P/ASX 200 index <> was
up 0.8 percent.
Strong earnings and positive economic reports such as a
surprising rise in U.S. housing starts in June helped U.S.
stocks close out their best week in four months on Friday. []
Of the 11 percent of S&P 500 firms which have reported
quarterly results so far, 71 percent have beat analysts'
expectations, 20 percent were below estimates and 9 percent
were in line.
While this positive momentum has lifted equity markets,
large credit-related losses at Bank of America <BAC.N> and an
unexpected drop in revenue at General Electric Co <GE.N> were
stark reminders of corporate America's struggle.
The U.S. dollar and yen slid in choppy trade, as investors
leaned toward higher-yielding currencies.
The Australian dollar rose 0.4 percent to 75.99 yen
<AUDJPY=R>, though it has been darting around in 70 yen to 80
yen range for the last month.
The euro climbed 0.3 percent to 133.57 yen <EURJPY=R>,
while the dollar edged up on the yen at 94.35 yen <JPY=>, from
94.26 late Friday.
Crude oil was relatively steady above $63 a barrel, after
rising 2.5 percent on Friday on positive U.S. housing data that
revived hopes of a global economic recovery.
After failing twice in June to make much progress above $71
a barrel, the front-month contract fell a week ago to a
two-month low of $58.32.
(Additional reporting by Jungyoun Park in SEOUL)
