* Yen, U.S. Treasuries rise as safety still sought
* Evidence of collapsed Asia exports keeps piling up
* Oil steadies after jumping above $44 overnight
By Kevin Plumberg
HONG KONG, Jan 22 (Reuters) - Asia stocks clung to small
gains on Thursday, with investors reassured after bank shares
fuelled a Wall Street rally, but with global economic gloom
still pervasive, safe-haven trades such as the yen and U.S.
Treasuries also rose.
Sterling gave up its gains after rising on speculation
policymakers may take more aggressive actions to support their
economy and perhaps the British currency as well.
Investors braced for Chinese gross domestic data due on
Thursday to see how badly a rapid global slowdown cut into
fourth quarter growth. Asia trade activity has collapsed in
recent months, with reports showing a record decline in
Japanese exports in December and South Korea's economy slowing
twice as quickly as forecast in the fourth quarter of 2008.
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> was up 0.7 percent though remained within
spitting distance of a one-month low touched earlier in the
session.
Japan's Nikkei average <> slipped 0.8 percent, weighed
by shares of large exporters such as Honda Motor Co <7267.T>
and Toyota Motor Corp <7203.T> as the yen rose.
Although risk taking among investors returned suddenly
overnight, knocking down a closely followed market volatility
index <.VIX> 18 percent, uncertainty about medium-term
corporate earnings, global consumer demand and the banking
industry kept the element of fear high.
The British pound resumed falls against the dollar towards
23-year lows, erasing gains made after a source told Reuters
that its slide will be discussed at the next meeting of the
Group of Seven industrialised countries. Sterling was down 0.8
percent to $1.3867, its lowest level since 1985.
"Sterling still looks far from hitting a bottom with
mounting expectations for further and bigger interest rate cuts
from the Bank of England to combat the quickly deteriorating
economy," said a senior trader at a Japanese trust bank.
The U.S. dollar fell 0.8 percent to 88.80 yen <JPY=>, after
rebounding from Wednesday's low of 87.10 yen, the lowest since
July 1995. The euro dropped 1 percent to 115.27 yen <EURJPY=R>,
falling towards a near 7-year low of 112.08 yen.
U.S. Treasuries, which have been in hot demand as the
credit crisis has kept investors in need of liquidity and
safety, rebounded after dropping overnight on worries about
upcoming debt supply to finance various U.S. rescue packages.
The yield on the benchmark 10-year note <US10YT=RR>, which
moves in the opposite direction of the price, slipped to 2.52
percent from 2.54 percent late in New York.
U.S. crude futures steadied on Thursday, after rallying
more than 6 percent the previous day, as traders weighed the
impact of recent OPEC supply cuts and a weaker dollar versus
the yen and euro.
Crude futures for March deliver <CLc1> -- which took over
as the main front month contract -- rose 23 cents to $43.78 a
barrel.
(Additional reporting by Satomi Noguchi in TOKYO; Editing by
Lincoln Feast)
