* Asia stocks edge higher on risk appetite
* Dollar hovers near 15-mth low
* Japanese govt bonds rise as Fujii expresses debt concern
* European shares set to open slightly higher
By Susan Fenton
HONG KONG, Nov 10 (Reuters) - Asian stocks nudged higher on
Tuesday on hopes continued stimulus will support economic
recovery, while the dollar hovered near a 15-month low on
expectations U.S. rates will remain near zero.
European equity futures <.STXEc1> were up 0.3 percent while
U.S. equity futures were down 0.3 percent.
Profit-taking weighed on the euro <EUR=> after it gained
more than 1 percent on Monday while the dollar <.DXY> steadied
against a basket of major currencies after hitting its lowest
level since August last year on Monday.
Asian share markets were buoyed by a 2 percent jump in the
Dow Jones <> on Monday to a 13-month high and continued to
ride on expectations for a prolonged period of low interest
rates after G20 finance ministers pledged at the weekend to
keep emergency measures in place until a recovery was assured.
"While dollar bulls are licking their wounds, equity and
'everything risky' investors are having a field day," said
Matthew Strauss, a senior currency strategist at RBC Capital in
Tokyo.
Japan's Nikkei index <> gained 0.6 percent, after
giving up some early gains as a late rise in the yen <JPY=>
trimmed advances in exporters.
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.
High-yield currencies such as the Australian <AUD=> and New
Zealand dollars <NZD> gained against the dollar on carry trade
demand as U.S. rates are expected to stay close to zero for
some time, traders said.
Rising risk appetite also favoured Asian currencies,
forcing central banks across the region to intervene to curb
currency appreciation as funds flowed into riskier assets.
They included the South Korean won <KRW=>, which neared a
13-month high at 1,155.2 to the dollar.
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 has steepened over the past month on
renewed concerns about possible increases in debt issuance
later this fiscal year and the size of JGB issuance in fiscal
2010/2011, which starts next April. [] Fitch on Tuesday
said that could trigger a ratings review on JGBs. []
CHINA CARMAKERS SURGE
Tech shares got an early boost after Wells Fargo raised its
2010 growth projection for chipmakers and the PHLX
semiconductor index <.SOXX> surged 3 percent, but gave up some
gains by late afternoon.
Hong Kong's stockmarket hit a two-week high by lunchtime
and Chinese automakers got a lift from surging car sales in
China [], sending Qingling Motors' <1122.HK>
shares soaring nearly 12 percent and Brilliance China <1114.HK>
shares up 8 percent.
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 <>
advanced 1.3 percent. Mining giants BHP Billiton Ltd <BHP.AX>
and Rio Tinto Ltd <RIO.AX> rose more than 2 percent.
The oil price <CLc1> retreated 0.3 percent to $79.2 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 Kaori Kaneko in TOKYO; Editing by
Kazunori Takada)
(susan.fenton@thomsonreuters.com; +852 2843 6367; Reuters
Messaging: susan.fenton.thomsonreuters.com@reuters.net)
