* Technology stocks get boost from Intel earnings, outlook
* Tepid US retail sales and job data weighs on broader
market
* Dollar and yen reverse early losses as risky positions
cut
By Umesh Desai
HONG KONG, Jan 15 (Reuters) - Technology shares jumped in
Asia on Friday after better-than-expected earnings from sector
bellwether Intel, but stocks elsewhere in the region were
largely subdued amid fresh doubts about the strength of the
U.S. economic recovery.
Tepid U.S. retail sales data and a rise in jobless claims
lifted Treasuries and provided a lead for government bonds in
Japan and South Korea as investors bet U.S. interest rates will
be kept very low for a prolonged period to give the economy
time to get on more solid footing.
European shares were seen inching higher as Intel's results
fuelled hopes for a strong earnings season. Financial
spreadbetters expected Britain's FTSE 100 <> to open 13 to
15 points higher, Germany's DAX <> to open 6 to 14 points
higher, and France's CAC-40 <> to open 2 to 9 points
higher.
But U.S. stock futures <SPc1> slipped 0.2 percent on
investor worries about the durability of America's recovery as
the boost from government stimulus measures fades.
In Japan, the Nikkei average <> flirted with negative
territory for much of the session before closing up 0.7 percent
at a 15-month high, buoyed by tech shares such Tokyo Electron
<8035.T>, a top supplier of memory chip-making equipment.
But analysts said profit taking was weighing on the index
as it drew near 11,000 points, with investors wary after seven
straight weeks of gains. []
Tech-heavy markets like Taiwan <> and South Korea
<> were the big gainers after Intel's <INTC.O> earnings
pointed to firm demand for PCs and other gadgets using memory
chips, even if U.S. consumers unexpectedly curbed their overall
Christmas spending in December. []
Taiwan <> ended up 0.8 percent at a 19-month closing
high while South Korean shares <> closed nearly 1 percent
higher as tech heavyweight Samsung Electronics <005930.KS> hit
a fresh record high.
Geoff Lewis, head of investment services at JP Morgan Asset
Mangement, said although corporate earnings had improved, they
still needed to be bolstered by good economic data for markets
to move higher.
"You still have to see continued good news on the economic
front to validate improvements in corporate earnings
forecasts."
Intel's 28 percent increase in fourth-quarter revenue plus
a financial forecast well ahead of Wall Street's expectations
came on a day when U.S. retail sales and weekly jobless claims
data disappointed and ultimately proved a drag on Wall Street,
with major indexes ending the day only marginally higher. []
The Commerce Department said retail sales fell 0.3 percent
last month, the first decline since September, as consumers
spent less during the holiday shopping month. []
A separate report from the Labor Department showed initial
claims for state unemployment benefits rose 11,000 to 444,000
last week, higher than the 437,000 claims analysts surveyed by
Reuters had forecast.
Mark Konyn, who oversees about $11 billion as Asia-Pacific
chief executive of RCM, a unit of Allianz Global Investors,
said improved earnings being seen in the tech sector were a
result of corporate demand carried over from past years.
"What we are seeing in technology is continued momentum
partly as a result of deferred capex spending over the last
almost two years now slowly coming through and that will
probably continue for a bit longer now," he said.
DOLLAR, YEN RECOUP LOSS AS RISKY BETS ARE REDUCED
Currencies seen as more leveraged to global growth, like
the Australian <AUD=D4> and Canadian dollars <CAD=>, rose
initially on Intel-fuelled demand but the U.S. dollar <.DXY>
and yen <JPY=> later reversed their losses as investors pared
risk amid the uncertain economic outlook.
Overnight, the Australian dollar briefly rose to $0.9331,
its highest since mid-November.
Japanese government bonds also rose after the U.S. economic
data boosted U.S. Treasuries, but gains were capped as the
firmness in Tokyo shares made investors hesitant.
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> was flat after rising as much as 0.25 percent.
It has risen 2.5 percent in the year so far. The index of
technology shares was up 1.03 percent.
The Thomson Reuters index of regional shares <.TRXFLDAXPU>
was down 0.37 percent.
The Nikkei average rose to its highest since October 2008
with data showing flows into Japan equity funds hit a near
3-year high. The MSCI Japan index <.MIJP00000PJP> has risen 6.7
percent so far in the new year.
"It would not be surprising when there will be brief
periods when Japan will outperform, it has done so badly in the
past. It is difficult to become enthiusiastic over that
market," said Lewis, whose fund is neutral on Japan.
Oil <CLc1> weakened and was set for its first weekly drop
in more than a month, as the disappointing economic data added
to expectations for reduced heating demand in the United
States.
(Editing by Kim Coghill)
