GLOBAL MARKETS-Asian stocks rise as Egypt worries fade

                                
 * Risk appetite revived as geopolitical tensions ease
                                
 * Oil holds near 10-week lows
                                
 * Euro seen capped by renewed euro zone debt worries

                                
 SYDNEY, Feb 14 (Reuters) - Asian stocks rose on Monday as
investors greeted news of Egyptian President Hosni Mubarak's
resignation with relief, while U.S. crude steadied near $85.50
after falling to 10-week lows as geopolitical tensions eased for
now.	
                                
 Mubarak handed power over to the army, bowing to escalating
pressure from the military and protesters demanding he goes. His
departure was seen partially reviving investors' appetite for
risk. 	
                                
 The euro edged up against the dollar but was seen capped by
renewed worries about the euro zone debt crisis. Spain and Italy
will return to the bond market this week to raise funds.	
                                
 The Nikkei climbed 0.7 percent after data showed
Japan's economy shrank slightly in the final quarter of last
year but beat forecasts for a bigger contraction.	
                                
 "What with good corporate earnings, the resignation of
Mubarak and other helpful factors, the investment environment is
good," said Yoshihiro Ito, chief strategist at Okasan Online
Securities. 	
                                
 Stocks elsewhere in Asia gained 0.8 percent
with Australia's S&P/ASX 200 index up 0.9 percent and
South Korea's KOSPI 1.0 percent higher.	
                                
 Last week, the MSCI Asia Pacific equity index, excluding
Japan, fell 2.65 percent, suffering its biggest weekly drop
since Aug. 2010.	
                                
 Questions over whether officials in emerging economies will
succeed in tackling inflation have prompted investors to pull
out some $3 billion from Emerging Markets Equity Funds tracked
by EPFR Global in the week ended Feb. 9. 	
                                
 This marked a third straight week of outflows and was the
worst three-week run in three years, the fund tracker said.	
                                
 But Japanese equities, which lagged the region last year,
saw some of the best inflows.	
                                
 "Investors are seeing value in Japanese exporters geared to
fast growing regional emerging markets where the yen's value
versus the dollar is not an issue. Inflation is also not an
issue for the world's third largest economy," the fund tracker
said. 	
                                
 U.S. crude oil was little changed at $85.51, hovering
just above a 10-week low of $85.10 set last Friday. Copper edged
up 0.4 percent to $9,997.75.	
	
 (Reporting by Ian Chua; Additional reporting by Taiga Uranaka
in Tokyo; Editing by Daniel Magnowski)