* Markets rebound, helped by U.S. pending home sales data
* Yen slides as Japan's PM resigns; successor in focus
* Bond prices dip as equity rally curbs safe-haven bid
* Oil rises above $73 a barrel
(Updates with close of European markets)
By Herbert Lash
NEW YORK, June 2 (Reuters) - Global stocks rebounded on
Wednesday on favorable April U.S. home sales data, while the
yen fell after Japanese Prime Minister Yukio Hatoyama resigned,
because his likely successor has previously said he wanted a
weaker yen.
Oil prices rose above $73 a barrel as the rally in U.S.
stocks eased concerns that Europe's sovereign debt crisis could
restrain a fragile economic recovery, including fuel demand.
For details see: []
U.S. government debt prices dipped as rising stocks offered
a semblance of stability for jittery investors and curbed the
appetite for safe-haven bonds. []
Wall Street rallied more than 1 percent, boosted by a
survey that showed pending sales of previously owned U.S. homes
topped expectations in April to hit a six-month high, and as
investors snapped up shares that tumbled during Tuesday's
sell-off.
The National Association of Realtors said its Pending Home
Sales Index, based on sales contracts signed in April,
increased 6.0 percent, to 110.9, as prospective home owners
took advantage of a popular home buyer tax credit. Eligible
homeowners were required to sign sales contracts by April 30,
and must close on the sales by June 30, to qualify for the
federal tax credits. []
Analysts polled by Reuters had forecast pending home sales
would rise 5.0 percent.
"This report is a confirmation that there's housing demand
out there and confirmation of an improving labor market," said
Phil Orlando, chief equity market strategist at Federated
Investors in New York. "All of this suggests that things are
improving."
European shares also eked out gains in a choppy session on
the upbeat U.S. housing data, and defensive drugmakers gained.
[]
The pan-European FTSEurofirst 300 <> index closed up
0.1 percent at 1,003.58 points.
MSCI's all-country world equity index <.MIWD00000PUS> pared
losses to rise almost 0.4 percent.
But persistent fears that the euro zone's debt crisis could
jeopardize the region's recovery weighed on banking shares,
pushing down Barclays <BARC.L> 2.2 percent and Banco Santander
<SAN.MC> 1.85 percent.
"Investors are still concerned that the euro zone debt
problem is not over, and it will keep hanging over the equity
market until the market gets to a more reasonable valuation,"
said Koen de Leus, economist at KBC Securities.
At 12:35 p.m., the Dow Jones industrial average <> was
up 111.25 points, or 1.11 percent, at 10,135.27. The Standard &
Poor's 500 Index <.SPX> was up 14.39 points, or 1.34 percent,
at 1,085.10. The Nasdaq Composite Index <> was up 31.22
points, or 1.40 percent, at 2,253.55.
The Dow Jones U.S. Home Construction index <.DJUSHB> rose
1.3 percent.
Energy shares were among the best-performing stocks,
recovering after the latest failed attempt by BP Plc <BP.N> to
halt the oil spill in the Gulf of Mexico and the news that the
U.S. government had launched a criminal probe into the
disaster. [].
U.S.-listed shares of BP still managed to climb, rising 2.5
percent to $37.44 as it worked on a new plan to halt the spill.
The PHLX Oil Service Sector index climbed 3.7 percent as
Halliburton Co <HAL.N> jumped 9.8 percent to $23.21 and
Schlumberger Ltd <SLB.N> advanced 7.6 percent to $55.71.
[]
YEN FALLS ON PM DEPARTURE
The U.S. dollar was up 1.2 percent at 92.10 against the yen
<JPY=> after Hatoyama stepped aside as prime minister, making
room for his expected replacement, Finance Minister Naoto Kan.
[]
"Kan is a noted dove who has been an aggressive proponent
of a lower yen in order to help stimulate Japanese exports,"
said Boris Schlossberg, a director of currency research at GFT,
in New York.
"With Japanese political situation in state of flux, the
dollar may be the only safe-haven instrument left in the
currency market for the time being," he added.
Schlossberg also cited Japan's political turmoil, saying
that it "has damaged some of the yen's safe harbor reputation
as Hatoyama became the fourth Japanese prime minister in four
years to leave the office."
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.11 percent at 86.74.
The euro <EUR=> was up 0.15 percent at $1.2243, paring
earlier losses.
European Central Bank board member Christian Noyer was
cited as saying the single currency's exchange rate against the
greenback was around a 10-year average and "by no means an
unusually low level." []
U.S. crude prices for July <CLc1> rebounded to rise 93
cents to $73.51 a barrel after the pending home sales data.
ICE Brent <LCOc1> rose $1.60 to $74.31 a barrel.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 14/32 in price to yield at 3.31 percent.
Spot gold prices <XAU=> fell $1.75 to $1,222.50 an ounce.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> fell 0.6 percent. Japan's Nikkei stock average
<> fell nearly 1 percent, surrendering some early gains.
Across Europe, Britain's FTSE 100 <> shed 0.2 percent,
Germany's DAX <> was flat and France's CAC 40 <>
fell 0.1 percent.
(Reporting by Ryan Vlastelica, Vivianne Rodrigues, Richard
Leong in London; Harpreet Bhal, Emma Farge and Brian Gorman in
London; Writing by Herbert Lash; Editing by Leslie Adler)
