RPT-GLOBAL MARKETS-Asia stocks, dollar firm on credit hopes

                                
 (Repeats to wider audience, with no changes to text)
 (Updates with latest prices, European shares outlook)
                                
 By Rafael Nam
                                
 HONG KONG, April 21 (Reuters) - Asian shares rose to their
highest in more than seven weeks on Monday as financial firms
gained on hopes the global credit crisis may have reached a
turning point, which also boosted the dollar but sank
safe-haven assets such as bonds.
                                
 The U.S. currency was near its highest level to the yen
since early March, providing relief for Asian exporters, with
the sector further comforted by stronger-than-expected
quarterly results from U.S. firms such as Caterpillar <CAT.N>.
                                
 European shares were set to open broadly unchanged.
                                
 Swiss drugmaker Novartis AG <NOVN.VX> posted
better-than-expected quarterly profits, while Nestle <NESN.VX>
said its sales grew slightly more than forecast.
[ID:nL18873215] and [ID:nZAT007651]
                                
 But oil prices hovered near a record $117 a barrel hit on
Friday amid concerns of supply disruptions in Nigeria and
comments by OPEC that it saw no need to increase production.
Gold rebounded after the previous session's sell-off.
                                
 "The market is clearly trying to say that the worst of all
these subprime and credit issues are now out, so we can move
on," said Greg Goodsell, equity strategist at ABN AMRO.
                                
 "But it remains to be seen whether that is really the case.
It's hard to be conclusive that there aren't further write-offs
out there in the financial sector."
                                
 The MSCI measure of Asian stocks excluding Japan
<.MIAPJ0000PUS> rose 2.6 percent by 0600 GMT, earlier hitting
its highest level since Feb. 29.
                                
 The index has now risen around 16 percent since March 18,
when it hit its lowest since August 2007, when credit concerns
first began surfacing. But the index is still down more than 8
percent so far this year.
                                
 The turnaround has come as forecast-beating earnings from
Merrill Lynch <MER.N> and JPMorgan Chase <JPM.N> last week
sparked hope the worst of the credit crisis may soon be over.
                                
 Citigroup Inc <C.N> on Friday posted a $5.1 billion
quarterly loss and said it will cut another 9,000 jobs, but its
shares still gained amid expectations that the top U.S. lender
was taking steps to move past its credit problems.
[ID:nN18298428]
                                
 Also on Friday, results from diversified U.S. manufacturer
Honeywell International Inc <HON.N> and construction and mining
equipment maker Caterpillar beat expectations. [ID:nN18303789]
and [ID:nN18313372]
                                
 BANKS' HOUSECLEANING
                                
 Tokyo's Nikkei average <.N225> rose 1.6 percent, led by
financials such as Mitsubishi UFJ Financial Group <8306.T>.
Exporters, which stand to benefit from a weaker yen, surged,
with Honda Motor Co Ltd <7267.T> up 8.8 percent.
                                
 Australia's main index <.AXJO> rose 3 percent, while Hong
Kong <.HSI> gained 2.5 percent, and markets in South Korea
<.KS11>, Singapore <.FTSTI> and India <.BSESN> were all up 1-2
percent.
                                
 Improving confidence in the financial sector also lifted
the dollar by 0.2 percent to 103.93 <JPY=>, near a seven-week
high of 104.66 hit on electronic trade platform EBS on Friday.
                                
 The euro <EUR=> was steady at $1.5815 <EUR=>, off a record
high of $1.5985 hit last week.
                                
 The euro zone currency has jumped more than 8 percent
against the dollar this year as investors have been attracted
by its yield appeal on expectations European interest rates
will stay put, while the Federal Reserve is seen cutting U.S.
rates.
                                
 Oil prices steadied at $116.71 a barrel, near the prior
session's record $117, after a Nigerian rebel group said on
Friday it sabotaged a major oil pipeline operated by Royal
Dutch Shell <RDSa.L>. [ID:nL18893095]
                                
 Crude was also supported after the president of the
Organisation of Petroleum Exporting Countries (OPEC) told
reporters the group saw no need to raise oil production.
[ID:nL20704420]
                                
 Spot gold <XAU=> rebounded to around $917 an ounce, after
falling on Friday to as low as $904.35 when investors dumped
safe-haven assets to add riskier assets such as stocks.
                                
 Investors also avoided lower-yielding Asian bonds.
                                
 Japanese June 10-year futures <2JGBv1> dropped 0.55 point
to 138.05, falling at one point below the 138-level for the
first time since late-February.