* Asian shares up for second day after upbeat Intel outlook
* Yen soft as commodity-related currencies gain ground
* Bonds hit by profit-taking after month of gains
By Wayne Cole
SYDNEY, July 15 (Reuters) - Asian share markets gained for
a second session on Wednesday as blockbuster results from tech
bellweather Intel Corp <INTC.O> seemed to augur well for the
U.S. earnings season and for consumer demand globally.
Intel shares were up over 7 percent in after-hours trading,
helping lift Nasdaq futures <NDc1> 2 percent and S&P 500
futures <SPc1> 0.9 percent. []
The news stimulated appetite for risk, including leveraged
trades in commodity-linked currencies like the Canadian and
Australian dollars, while dimming the attraction of lower
yielding safe havens like the yen and government bonds.
Base metals prices also gained, though crude oil was stuck
around $60 dollar a barrel for a fith straight session.
Japan's Nikkei <> edged up 0.4 percent, while shares
elsewhere across the region rose 1.1 percent <.MIAPJ0000PUS>.
Notably, South Korea's Kospi <> rose 2.2 percent
helped by gains for chip makers Samsung Electronics <005930.KS>
and Hynix <000660.KS>. The firms' shares rose 4.6 percent and
2.4 percent, respectively.
Australia's S&P ASX 200 share index <> climbed 1.0
percent, having risen 3.5 percent on Tuesday in its biggest
daily advance so far this year.
The Australian dollar likewise benefited from a return to
risk, rising to a one-week high at $0.7950 <AUD=> and leaving
behind Monday's $0.7700 low.
The yen was the major loser as a safe-haven, with the dollar
reaching 93.50 yen <JPY=> from a 91.72 trough early in the
week, while the euro firmed to 130.80 yen <EURJPY=>.
Banking major Goldman Sachs <GS.N> had got the ball rolling
by reporting a 33 percent jump in quarterly earnings thanks to
stellar trading profits, though its shares barely budged,
having run-up ahead of the results. []
But it was Intel's results after the bell that really got
investors excited as the chip maker's earnings of 18 cents a
share far surpassed forecasts of 8 cents. Its outlook also blew
past forecasts, potentially signally stronger consumer demand
for personal computers.
Investors and policymakers have been anxiously looking for
signs of a pick up in U.S. demand, which is key to a solid
global recovery.
ASIAN REBOUND
Intel reported especially strong demand in Asia, bolstering
hopes the region would recover even as most Western economies
struggled.
Upbeat economic figures from Singapore and Australia had
drawn attention on Tuesday, while a business survey from Canada
also showed a marked improvement [].
Retail sales figures from the United States were less
encouraging, showing a 0.2 percent drop in June once volatile
autos and higher petrol prices were stripped out.
Yet many analysts are sounding more optimistic on the
global outlook thanks chiefly to growth in the developing
world.
"We are revising growth forecasts up virtually across the
globe," wrote Michael Hartnett, Merrill Lynch's chief global
equity strategist, in a note to clients.
The U.S. investment banks now sees world growth of 3.7
percent in 2010, with emerging markets up 5.5 percent and the
developed world growing 2.2 percent.
"The global recovery is likely to be slow and require
sustained policy help," said Hartnett. "But an inflection point
in the global economy should encourage investors to rebalance
their portfolios to reduce cash, and look for opportunities to
increase equity exposure."
The improved mood curbed demand for safe-haven sovereign
debt, prompting profit-taking on a month of gains. Yields on
U.S. 10-year Treasury notes <US10YT=RR> stood at 3.47 percent,
up from a two-month low of 3.26 percent touched on Monday.
Japanese government bond futures <2JGBv1> fared somewhat
better as investors bet the Bank of Japan would extend measures
to support corporate finance at the end of its two-day policy
meeting later on Wednesday.
News that Moody's had downgraded California, and its $72
billion of debt, seemed to have been well anticipated and had
little immediate impact. []
(Editing by Kim Coghill)
