* MSCI Asia Pacific stock index hits fresh 2-1/2 year highs
* Nikkei pressured as firmer yen weighs on exporters
* Copper holds near record high, oil stays above $91
* Australian dollar at fresh 28-year highs
By Ian Chua
SYDNEY, Dec 30 (Reuters) - Asia Pacific stocks rose to
fresh 2-1/2 year highs on Thursday thanks to growing optimism
for global growth, but a firmer yen weighed on Japanese
exporters, driving the Nikkei lower in the last trading day of
the year for many Asian centres.
Copper held close to a record high of $9,447 a
tonne, and U.S. crude oil <CLc1> was within easy reach of a
2-year high near $92 a barrel, all of which helped the
Australian dollar scale a fresh 28-year peak just shy of $1.02
.
Underpinning this upbeat view is a recent string of U.S.
data, which suggested the world's biggest economy was entering
the new year with a relatively decent amount of momentum.
Coupled with strong Asian growth led by China, many
analysts believe 2011 will be another positive year for global
equities, particularly given the still favourable liquidity
backdrop, fuelled by ultra-low interest rates in major
economies, and quantitative easing and tax cuts in the United
States.
"While GFC (global financial crisis) aftershocks will
continue to cause volatility and shares are becoming
vulnerable to a short term correction in January after several
months of very strong gains, shares are likely to put in good
gains through 2011 as a whole," said Shane Oliver, head of
investment strategist at AMP Capital Markets.
MSCI's All Country Asia Pacific stock index
rose 0.2 percent, having earlier touched highs
last seen in mid-2008 and taking gains so far this year to 14
percent.
This compared with a rise of 10 percent for the MSCI World
stock index , 13.5 percent for the MSCI America
index and a paltry 1.3 percent for European
stocks .
Investors favoured some of the major miners on Thursday,
driving BHP Billiton up 0.6 percent. This in turn
helped push Australia's S&P/ASX 200 index up 0.3
percent.
South Korea's KOSPI was flat, but on track to end
the year some 22 percent higher, among the best in Asia.
Japan's Nikkei bucked the firmer trend, shedding 1.2 percent
as major exporters fell victim to a firmer yen.
"The recent advance of the yen has been a bit unexpected
and
clearly having a negative psychological impact on share
prices,"
said Takashi Ohba, a senior strategist at Okasan Securities.
Market participants, however, think Japanese stocks
are still undervalued compared with those in other
developed markets. The Nikkei is down about 3 percent for the
year and is among the worst performing equity index in Asia.
Thursday is the last trading day many Asian markets
including Japan, South Korea, Thailand, Indonesia and the
Philippines.
The yen rose to highs not seen since Nov. 9 as the dollar
fell across the board, pressured by a decline in U.S. Treasury
yields.
The greenback slid to a seven-week low around 81.30 yen
, while the euro climbed to $1.3259 , extending
Wednesday's rebound from a low around $1.3081.
However, traders warned thin year-end conditions made for
exaggerated moves.
The U.S. 10-year Treasury bond yield was last
at 3.349 percent, well off a high around 3.5 percent set
earlier in the week, after an auction of seven-year notes drew
decent demand.
(Additional reporting by Chikafumi Hodo in Tokyo)
