* Asian shares firm for second day on upbeat Intel outlook
* Yen slips as commodity-related currencies gain ground
* Bonds steadier, JGBs aided as BOJ extends credit support
(Repeats to more subscribers)
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.
European bourses were set to follow with Euro Stoxx futures
<STXEc1> up 1.3 percent in early trade.
Intel shares were indicated up over 7 percent in
after-hours trade, helping lift Nasdaq futures <NDc1> 1.7
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.
Base metals prices also gained, while crude oil futures
<CLc1> jumped above $60 dollar a barrel on stronger equity
markets and data showing U.S. oil stockpiles fell last week.
Japan's Nikkei <> only eked out a 0.1 percent gain,
but shares elsewhere across the region rose 2 percent
<.MIAPJ0000PUS>.
South Korea's Kospi <> stood out with a 2.6 percent
increase, helped by gains of 5 percent for chip makers Samsung
Electronics <005930.KS> and Hynix <000660.KS>.
Australia's S&P ASX 200 share index <> chimed in with
a 1 percent gain, 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 $0.7955 <AUD=> and leaving
behind Monday's $0.7700 low.
The yen was the major loser as a safe-haven, with the dollar
reaching 93.60 yen <JPY=> from a 91.72 trough early in the
week, while the euro firmed to 131.07 yen <EURJPY=>.
Banking major Goldman Sachs <GS.N> got the ball rolling
overnight 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. []
Australian investment bank Macquarie <MQG.AX> benefited by
association, with its shares up almost 3 percent on the day,
though financials elsewhere in the region were mixed.
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 signaling 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, indicating
consumers were still wary of stepping up spending.
[]
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 bank 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. Yields on U.S. 10-year Treasury notes <US10YT=RR> stood
at 3.46 percent, up from a two-month low of 3.26 percent hit
Monday.
Japanese government bond futures <2JGBv1> fared better,
helped by a decision by the Bank of Japan to extend its support
for corporate finance until December. []
Ironically, such support tends to find its way into
government debt since banks are so reluctant to lend to
customers they end up putting the excess cash into JGBs.
(Editing by Kim Coghill)
