* Asian shares rise, although rise in Tokyo mild
* Dollar falls as investors look to add some risk
* Oil extends gains above $70 a barrel
(Repeats to additional subscribers)
By Charlotte Cooper
TOKYO, June 26 (Reuters) - Asian share markets rose on
Friday, as higher oil and metals prices boosted resource
stocks, while the dollar fell as investors, growing slightly
more confident, gingerly shifted some funds back into riskier
assets.
U.S. crude oil futures pushed on above $70 a barrel on
renewed rebel attacks against oil facilities in Nigeria and
worries that a glitch at the largest U.S. oil refinery may
tighten gasoline stockpiles. []
The MSCI index of Asian stocks excluding Japan
<.MIAPJ0000PUS> climbed 1.5 percent to 322.92, although remains
below the eight-month highs seen at the start of June, while
Japan's Nikkei <> was up just 0.2 percent.
Australian shares <> jumped 1.4 percent, lifted by oil
producers after crude prices firmed, and by Qantas Airways Ltd
<QAN.AX> after it cut and deferred orders of Boeing Co <BA.N>
Dreamliner aircraft in a cost-saving move.
"The tone of the market is reasonable, people are prepared
to buy on the dips ... but it is also hard to see the market
roaring ahead," said David Spry, research manager at FW Holst
in Melbourne.
In Japan, Nippon Oil Corp <5001.T> jumped over 4 percent
after a newspaper reported that it and other Japanese companies
were in the final stage of talks with Iraq to win the
development contract for Iraq's huge Nassiriya oilfield.
[]
Suzuki Motor <7269.T> climbed 5.5 percent after a source
familiar with the matter said Volkswagen <VOWG.DE> was
exploring a potential cooperation deal with Suzuki as a way to
boost its expertise in the area of ultra-small cars.
[]
A climb on Wall Street supported Asian share markets.
U.S. stocks rose after encouraging news from retailer Bed
Bath & Beyond Inc <BBBY.O> and after Federal Reserve Chairman
Ben Bernanke withstood grilling in Congress on whether he had
coerced Chief Executive Kenneth Lewis of Bank of America to go
forward with plans to buy a flagging Merrill Lynch.
[]
The Dow Jones industrial average <> closed up 2.1
percent at 8,472.40, with similar gains on the Standard &
Poor's 500 Index <.SPX> and the Nasdaq Composite Index <>.
MIXED FEELINGS
Many share markets have been in retreat in the past two
weeks as investors paused to work out if a rally in place since
about March has run out of steam, as economies around the world
struggle. Data continues to show a mixed picture.
In Japan, consumer price data showed a record drop on the
year in May, with falling demand increasingly blamed as the
country's second bout of deflation in less than two years
deepens. [] []
And in New Zealand, the economy shrank for the fifth
quarter in a row in the three months ended March, marking its
longest contraction on record. []
But markets are more confident than they were a few months
ago and for shares, the U.S. Federal Reserve's statement on
Wednesday reinforced expectations that interest rates will
remain at a record low for a while.
In one measure of how investor sentiment has improved, the
CBOE Volatility Index <.VIX>, a favourite measure of investor
anxiety, on Thursday closed at its lowest level since just
before Lehman Brothers filed for bankruptcy protection last
September.
Investor confidence was also helped on Thursday by the Fed
and its counterparts around the world extending currency swap
lines until February 2010 so they have U.S. dollars to lend in
their markets. []
The dollar index <.DXY>, a gauge of its performance against
six other major currencies, fell 0.4 percent and the greenback
softened to 95.94 yen <JPY=>, while the euro rose 0.4 percent
to $1.4040 <EUR=>.
Gold prices rose, with spot gold above $941 per ounce
<XAU=> as firmer oil prices supported bullion's appeal as
potential hedge against oil-led inflation.
U.S. crude futures <CLc1> were trading at $70.57 a barrel,
after jumping 2.3 percent the previous session.
(Editing by Kazunori Takada)
