* MSCI world stock index hits two-week highs
* Improved risk appetite weighs on yen
* Safe-haven government bonds fall, yields climb
By Ian Chua
LONDON, June 3 (Reuters) - Global stocks powered to a
two-week high on Thursday while the yen came under pressure
after recent upbeat U.S. data renewed appetite for riskier and
higher-yielding assets.
Wall Street looked set to benefit, with U.S. stock index
futures <DJc1><NDc1><SPc1> all in the black, pointing to an
extension of the previous day's gains.
Investors welcomed data on Wednesday that showed pending
home sales rose to a six-month high in April. Expectations are
high that numbers due on Friday will show the U.S. economy
generated more than 500,000 jobs last month. []
"Yesterday's news on U.S. pending home sales and auto sales
are signs confidence is improving in the economy," said David
Buik, partner at BGC Partners. "We are also expecting decent
U.S. non-farm payroll numbers tomorrow which is quite key."
Global stocks as measured by MSCI <.MIWD00000PUS> climbed
1.2 percent, having earlier reached highs last seen on May 19,
and emerging markets stocks <.MSCIEF> rallied 2 percent.
The FTSEurofirst 300 index <> of top European shares
put on 1.8 percent, with financial shares such as Banco
Santander <SAN.MC> and Barclays <BARC.L> among the bright spots.
Energy stocks ended a four-day losing run, with BP <BP.L>,
which had been battered by the Gulf of Mexico disaster, rising
3.3 percent.
Earlier, Tokyo's Nikkei share average <> rose over 3
percent, posting its biggest one-day rise in six months.
YEN PRESSURED
But the yen, already on a shaky footing with political
uncertainty in Japan weighing, fell across the board.
The dollar rose 0.6 percent versus the yen <JPY=> to 92.69
and the euro gained 0.5 percent to 113.46 <EURJPY=R>.
"Financial market conditions have stabilised in the near
term. There's renewed risk-taking and that leads to a weaker
yen," said Lee Hardman, currency analyst at BTM-UFJ.
Against a basket of major currencies, the dollar <.DXY> was
flat, having recovered from an earlier fall.
The New Zealand dollar <NZD=>, which hit a two-week high at
$0.69, was last at $0.6848.
Government bond yields rose as appetite for safe-haven
assets weakened. The 10-year German Bund yield <EU10YT=RR>
climbed 6 basis points to 2.719 percent, while the 10-year U.S.
yield <US10YT=RR> put on 3 bps to 3.380 percent.
Gold <XAU=> fell, but U.S. crude oil futures <CLc1> rose
$0.37 to $73.24 a barrel and copper <MCU3=LX> erased earlier
gains to be down 0.4 percent at $6,665.00 a tonne.
(Additional reporting by Joanne Frearson and Neal Armstrong;
editing by John Stonestreet)
