* Stocks advance on hopes stimulus plans will run longer
* US dollar still under pressure after G20, gold hits
record
* U.S. 30-year bond falls ahead of new supply
* Status quo in place: asset prices to head higher
(Repeats to more subscribers)
By Kevin Plumberg
HONG KONG, Nov 9 (Reuters) - Asian stocks and currencies
rose on Monday on bets a surge in the U.S. unemployment rate to
a 26-1/2-year high would force policymakers to keep many
stimulus measures in place until an economic recovery spread
further.
In bond markets, however, worries grew about how
governments would pay for all the stimulus. The benchmark
10-year Japanese government bond yield rose to a 4-1/2-month
high and the spread of the 10-year U.S. Treasury yield over the
2-year yield widened to the most since July 27.
Major European stocks were expected were expected to open
as much as 0.9 percent higher, following the gains in Asia,
financial bookmakers indicated.
The message of status quo was well reflected in markets
with U.S. job market contraction remaining near a trend rate
and G20 finance leaders ending a weekend meeting without any
concrete proposals to rebalance the global economy.
That meant the winner will be asset prices.
"On the one hand, as long as the recovery is not strong
enough, central banks will keep on supporting liquidity and
asset prices may benefit," said Sebastien Barbe, strategist
with Calyon in Hong Kong.
"On the other, central banks may begin to tighten monetary
conditions in coming quarters, but only when economic growth
has gained sufficient momentum and sustainability, and this
restored economic strength may also to some extent support
asset prices despite central bank tightening," Barbe said in a
note.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 1.4 percent, having risen about 5 percent
since hitting a one-month low a week ago.
The materials sector was the biggest outperformer followed
by financials. Telecommunications and utilities, traditional
defensive plays, were laggards.
A Thomson Reuters index of regional shares was also up 1.4
percent <.TRXFLDAXPU>.
Japan's Nikkei share average <> finished 0.2 percent
higher.
The Australian benchmark S&P/ASX 200 index <> rose 1.8
percent and led the region.
Shares of AXA Asia Pacific Holdings <AXA.AX> shot up 32
percent after the insurer rejected a $10.3 billion break-up
plan that would have left its assets split between its parent
and a rival.
DOLLAR KEEPS GETTING SMACKED
In addition to equities, dealers went straight for Asian
currencies as the U.S. dollar remained under pressure.
G20 finance officials failed to talk more specifically
about the dollar's recent decline at their weekend meeting
[].
Also hurting the dollar was a statement by the
International Monetary Fund which said while the U.S. dollar
has depreciated in the recent months, it still remained on the
"strong" side, sparking another bout of selling in Asia.
"Now that a series of major economic events is over, relief
has prevailed among investors that it's OK to sell the dollar,"
a currency trader with a Japanese bank said.
The dollar was down 0.6 percent against the South Korean
won <KRW=> and 1 percent against weaker the Phillipine peso
<PHP=>.
The euro rose 0.3 percent to $1.4930 <EUR=>, creeping back
up towards a 14-month high above $1.50 and recouping losses
made after weak U.S. jobs data lifted safe haven demand for the
dollar and the yen.
The Labor Department reported on Friday that U.S. employers
cut a larger-than-expected 190,000 jobs in October and the
unemployment rate rose to 10.2 percent lifted prices of most
U.S. government securities.
The sliding dollar pushed up gold prices to record highs.
In the spot market, gold climbed to a high of $1,104.80 an
ounce <XAU=>, up 26 percent on the year. That return exceeds
the gain on the S&P 500 <.SPX>, which is up 18 percent so far
this year.
Long-dated U.S. Treasuries slid in the cash market, pushing
up the 30-year yield to 4.42 percent <US30YT=RR>.
The U.S. government will auction $81 billion in debt this
week, including $16 billion in 30-year bonds.
Oil prices rose 1.2 percent to $78.35 a barrel, recouping
some of the previous session's near 3 percent loss, on concerns
that a powerful hurricane would cut U.S. oil and gas supplies.
[]
(Additional reporting by Kaori Kaneko in TOKYO; Editing by
Kazunori Takada)
