* Stocks extend losses after US slide but off intra-day
lows
* Tokyo shares close at 4-wk low, Hong Kong down 1.1
percent
* S&P futures lend some support on Bernanke confirmation
hope
* Kiwi, Aussie dollars up as some appetite for risk
surfaces
By Raju Gopalakrishnan
SINGAPORE, Jan 25 (Reuters) - Asian stocks fell on Monday
after Wall Street's worst three-day slide in 10 months, but
moved off intra-day lows as a gain in U.S. futures signalled
New York markets could recover some of last week's losses.
European stocks <>, however, were seen likely to
extend last week's falls, hit by the White House's plan to curb
risk taking by financial institutions, weaker-than-expected
corporate earnings and fears that the global recovery may be
losing steam.
The U.S. dollar fell and high-yielding currencies edged up
on signals that Federal Reserve Chairman Ben Bernanke was
moving closer to being appointed for a second term, which
re-awakened some investor appetite for riskier assets.
The Nikkei <> ended down 0.74 percent at a four-week
closing low as a stronger yen weighed on shares of exporters
such as Toyota Motor Corp <7203.T>, but the index pared early
losses of up to 1.2 percent. []
The MSCI index for Asia ex-Japan shares <.MIAPJ0000PUS> was
down 0.8 percent but also off the day's lows.
"Gains in U.S. stock futures prompted investors to expect a
rebound on Wall Street after sharp falls, while buying on dips
appeared as the Nikkei has fallen below its 25-day moving
average," said Mitsushige Akino, chief fund manager at
Ichiyoshi Investment Management.
U.S. stock futures <SPc1> rose 0.5 percent, pointing to a
firmer open later in the day.
Wall Street stocks fell as much as 2.7 percent on Friday
on
worries over President Barack Obama's plan to curb banks and
after Google Inc <GOOG.O> posted strong revenue growth that
nevertheless disappointed some investors, hitting tech shares.
[]
With the sudden loss of leadership from the financial and
tech sectors, which have led a global rally in recent months,
analysts are unsure if equities will continue to sink. Some
investors fear the global economic recovery may be slowing,
which would further impede corporate profit growth, and a
number of technical indicators point to more market weakness.
But some key Asian stocks rebounded on perceptions they had
been oversold, including Hong Kong's Henderson Land <0012.HK>
and Korea's Samsung Electronics <005930.KS>. Henderson Land
rose 1.6 percent while Samsung Electronics added 2 percent.
INDONESIA UPBEAT
Other markets also showed signs that investor risk appetite
may be recovering after global markets recoiled last week on a
host of unsettling factors.
Fitch upgraded Indonesia's sovereign credit rating to one
notch below investment grade on Monday, giving a vote of
confidence to one of Asia's strongest economies that has become
a big favourite to investors across the world. []
The upgrade of Indonesia's long-term foreign and local
currency ratings tightened spreads on credit default swaps and
pulled the rupiah <IDR=> off intraday lows. Analysts said an
investment grade rating was likely in the next few years.
In foreign exchange markets, high-yielding currencies like
the Aussie <AUD=> and the kiwi <NZD=> rose, inching up to
$0.9060 and $0.7145 respectively, from $0.9003 and $0.7110 late
on Friday.
Investors were also spooked last week after several key
senators announced their opposition to Bernanke's
reappointment, but the top Senate Republican on Sunday
predicted confirmation, providing support to high-yielding
assets. []
The U.S. dollar edged up against the yen to 90.20 yen
<JPY=>, from 89.87 yen late on Friday in New York but fell
about 0.1 percent against a basket of six currencies <.DXY>.
The yen had struck a five-week high against the dollar and
a nine-month high on the euro on Friday as investors rushed
towards safe-haven assets.
Still, demand for riskier assets and higher-yielding
currencies is likely to remain subdued amid rising concerns
over Greece's fiscal problems; worries that China's efforts to
curb its surging economy may impair global growth and fears
that the populist turn at the White House might impact U.S.
bank earnings.
Traders are awaiting investors' response to Greece's
proposed issue of a 5-year benchmark bond issue later on Monday
as a test of investor appetite, analysts said. []
In other markets, crude oil <CLc1> steadied near its
four-week low of below $75 a barrel, while spot gold <XAU=>
trekked upward to $1,100.80 per ounce from the New York close
of $1,091.65 as the dollar edged down and investors bet that
the fall in bullion prices last week was overdone.
(Editing by Kim Coghill)
