By Tomasz Janowski
SINGAPORE, April 16 (Reuters) - Asian stocks scored solid
gains on Wednesday, with high-tech exporters buoyed by a
reassuring outlook from industry leader Intel Corp <INTC.O> and
energy shares underpinned by record high oil prices.
Financial stocks also climbed after several U.S. regional
banks' quarterly results beat forecasts, suggesting it was not
all doom and gloom in a sector roiled by the U.S. mortgage
market meltdown and the global credit crunch.
The battered U.S. dollar gained some ground after
surprisingly strong U.S. inflation and manufacturing data
suggested the Federal Reserve may be less aggressive in cutting
interest rates than earlier thought. []
"There is more confidence in the market and people are
perceiving that there is a little more value," said Robert
Hook, portfolio manager at Australian firm SG Hiscock & Co.
U.S. banks, including U.S. Bancorp <USB.N> and Regions
Financial Corp <RF.N>, reported first-quarter profits that beat
forecasts and expressed confidence they could withstand rising
credit losses [].
Investor sentiment was also lifted after Intel, the world's
largest maker of semiconductors, affirmed its 2008 profit
margin target, reassuring investors concerned about the impact
of a weak U.S. economy [].
Japan's Nikkei average <> jumped 1.4 percent, led by
high-tech exporters such as Sony Corp <6758.T>, with financial
stocks, including sector leader Mitsubishi UFJ Financial Group
<8306.T>, also powering ahead.
The MSCI's measure of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 1 percent by 0224 GMT, building on
Tuesday's modest 0.5 percent gain, though the index is still
down almost 11 percent so far this year.
Asia's energy and resource stocks, such as Australia's
Woodside Petroleum Ltd <WPL.AX>, were among the top gainers,
benefiting from high oil prices.
Markets in Seoul <>, Singapore <.FTSTI>, Sydney
<> and Hong Kong <> all posted gains of around 1
percent.
However, with big Wall Street names such as JPMorgan Chase
<JPM.N>, Merrill Lynch <MER.N> and Citigroup <C.N> yet to
report results this week, investors remain wary of more nasty
surprises, such as an unexpected loss reported earlier this
week by U.S. fourth-largest bank Wachovia <WB.N>.
"I expect gains to be limited as the market awaits a series
of earnings overnight," said Kazuhiro Takahashi, general
manager of the equity marketing department at Daiwa Securities
SMBC.
The dollar edged up 0.1 percent against the euro, which
traded at $1.5782 <EUR=> and dipped by the same margin against
the yen, still near Tuesday's high of around 101.85 yen.
The U.S. currency won a rare reprieve after a gauge of New
York manufacturing activity rose in April and U.S. producer
prices jumped 1.1 percent in March, more than expected.
Worries that the world's biggest economy may have already
stumbled into recession have kept the U.S. currency under
pressure for months contributing to a global rally in
commodities, most of which are priced in U.S. dollars.
The weak dollar and supply worries pushed oil prices to a
record high above $114 a barrel on Tuesday.
U.S. crude futures <CLc1> edged down in Asian trade after
the dollar's uptick, but still held firm above $113.
"Whenever you get any kind of good economic news out of the
(United States) at the moment, the dollar will rise and oil
falls, and the other way round, you get a new oil record," said
Gerard Rigby, an analyst at Sydney-based Fuel First Consulting.
Rising stocks reduced the safe-haven appeal of government
bonds, and Japanese government bond futures dipped 0.1 point by
0145 GMT <2JGBv1> though the losses were limited given market
caution ahead of a slew of U.S. earnings reports.
Gold <XAU=>, in high demand both as an inflation hedge at
the time of soaring commodity prices and an attractive
investment alternative during financial market turbulence,
eased as the dollar edged up and oil paused its record-breaking
streak.
