* Asia stocks rise after U.S. equities hit 13-month high
* Asian central banks intervene to rein in currencies
* Japanese govt bonds rise as Fujii expresses debt concern
By Susan Fenton
HONG KONG, Nov 10 (Reuters) - Asian stocks rose on Tuesday
after U.S. equities hit a 13-month high, while central banks
intervened to curb Asian currencies as funds flowed into
riskier assets on expectations economic stimulus measures will
continue.
Markets were buoyed by a 2 percent jump in the Dow Jones
<> on Monday. Analysts said investors were encouraged by
G20 finance ministers' pledge at the weekend to keep emergency
measures in place until a recovery was assured, raising
expectations for prolonged low interest rates.
"Investors had been worried about talk of early exit
strategies. The concern has been removed, although
uncertainties linger over the still slow economic recovery and
fourth-quarter corporate earnings," said Chung Myoung-ji, an
analyst at Samsung Securities in South Korea, where shares were
up 1 percent.
Japan's Nikkei index <> was 1.6 percent higher.
Japanese government bond futures meanwhile rose after
Finance Minister Hirohisa Fujii said he was worried about the
rise in long-term rates and that it was important not to lose
trust in the bond market. []
The yield curve for government bonds has steepened over the
past month on renewed concerns about possible increases in debt
issuance later this fiscal year and worries about the size of
JGB issuance in fiscal 2010/2011, which starts next April.
[]
TECH SHARES BOOSTED
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> was 0.7 percent higher while the Thomson
Reuters index of regional shares <.TRXFLDAXPU> was flat.
Tech shares got a boost after Wells Fargo raised its 2010
growth projection for chipmakers and the PHLX semiconductor
index <.SOXX> surged 3 percent. South Korea's Samsung
Electronics <005930.KS>, the world's largest memory chip maker,
rose 1 percent.
Shares of Japan's Toshiba Corp <6502.T> were up 2 percent in
Tokyo after the company made a solo bid for French nuclear
reactor builder Areva's <CEPFi.PA> transmission and
distribution business. []
The dollar <.DXY> was flat against a basket of major
currencies, after hitting a 15-month low overnight, but lost
ground early on to Asian currencies on rising risk appetite.
Central banks, including in South Korea, the Philippines
and Thailand were spotted stepping in to rein in currency
appreciation, traders said. []
OIL PULLS BACK
President Barack Obama, in an interview with Reuters, said
he plans to raise the issue of China's yuan currency <CNY=CFXS>
during a trip to China next week. []
"Currency, along with a host of other issues, will come up,
and I'm confident that both the United States and China can
arrive at a broad set of policies that encourages trade that
benefits both countries, that allows ongoing economic growth,"
Obama said.
The yuan has consistently been a focus in U.S.-China trade
disputes, with U.S. critics saying China keeps its currency
undervalued to gain an advantage. China says its stable
exchange rates helps its exporters and promotes global economic
stability.
Overnight gains in metal and oil prices pushed up mining
shares in Australia, where the benchmark share index <>
was up 1 percent. Mining giants BHP Billiton Ltd <BHP.AX> and
Rio Tinto Ltd <RIO.AX> rose around 2 percent.
The oil price <CLc1> retreated 0.4 percent to $79.08 a
barrel after rallying $2 in overnight trade after a tropical
storm shut 30 percent of U.S. offshore production and more than
a quarter of its natural gas output. []
Gold <XAU=> held above $1,100 an ounce, pausing after
hitting a record $1,110.85 on Monday.
(Additional reporting by Rhee So-eui in SEOUL; Editing by Alex
Richardson)
(susan.fenton@thomsonreuters.com; +852 2843 6367; Reuters
Messaging: susan.fenton.thomsonreuters.com@reuters.net)
