* Series of U.S. earnings misses, warnings damage sentiment
* Forex market remains sceptical about financial sector
* Healthcare industry scores with investors globally
(Updates prices, adds European outlook)
By Kevin Plumberg
HONG KONG, July 22 (Reuters) - Most Asian stocks traded
flat on Tuesday as investors awaited more U.S. corporate
results after a landslide of disappointing earnings spread
uncertainty about consumer demand, though Japanese shares
surged on hopes for U.S. banks.
European shares are expected to open down as much as 0.9
percent, according to financial bookmakers, after
lower-than-expected earnings from American Express <AXP.N> and
Apple <AAPL.O>.
The U.S. dollar was steady after falling overnight as
dealers shrugged off higher-than-expected results from the top
two banks Citigroup Inc <C.N> and Bank of America Corp <BAC.N>
and remained sceptical about the stability of the financial
sector.
"What really matters is that we're in a bear market and
there is no reason to believe that that's going to change in
the near future," said Adnan Kucukalic, equity strategist at
Credit Suisse First Boston.
"Banks are cheap and that's a very good thing but there is
no reason for you to get into them in a hurry."
In Japan, a focus on some U.S. bank results that beat
forecasts and hopes for industrial companies handed shares the
biggest daily gain since May 29 and shed a rare glimmer of
light in Asia equity markets. Asian stocks are entrenched in a
bear market, falling more than 20 percent from a November
all-time high.
The Nikkei share average <> jumped 3 percent as trade
resumed after a public holiday on Monday. Shares of Honda Motor
Co <7267.T> rose 5.3 percent and were one of the biggest boosts
to the index ahead of the company's results due on Friday.
Outside of Japan, shares in the Asia-Pacific region were
largely unchanged, fighting back from early losses, according
to an MSCI index <.MIAPJ0000PUS>.
Hong Kong's Hang Seng <> was steady while South Korea's
KOSPI <> slipped 0.1 percent, led by the country's
export-dependent technology sector on unease over sharply
slowing demand in the West.
Samsung Electronics stock <005930.KS> fell 1.5 percent and
LG Electronics <066570.KS> was down 3.1 percent after earnings
from Texas Instruments Inc <TXN.N> and SanDisk Corp <SNDK.O>
that fell short of analysts' estimates.
American Express Co <AXP.N>, iPod and computer maker Apple
Inc <AAPL.O> and cruise ship operator Royal Caribbean Cruises
Ltd <RCL.N> all warned about their results on Monday,
suggesting climbing food and energy prices and sluggish
economic growth have indiscriminately hit consumers of all
income levels. []
HEALTHCARE, REAL ESTATE SECTORS BENEFIT
Investors have been taking money out of stocks closely tied
to discretionary consumer spending and sending it to beaten
down sectors and to the healthcare sector.
Last week funds focused on the consumer goods sector had
the highest outflow of equity capital in eight months, while
healthcare and biotechnology funds had the best week in more
than 18 months, according to EPFR Global, a Boston-based
research firm that tracks $10 trillion in assets.
Financial sector and real estate sector funds, two areas
that have been battered by the year-old global credit crisis,
saw fresh money.
"U.S. officials have made it very clear they will do all
they can to keep the transmission lines open between the
financial sector and home-buyers, reinforcing the belief among
a significant number of investors that these sectors --
financials and real estate -- have been oversold," Cameron
Brandt, EPFR Global senior analyst, said in a note.
Investors around the world have been gradually shifting
their focus to growth prospects from inflation pressures, now
that the downturn in global equities which started in November
has lopped off $10.3 trillion in total market capitalisation,
according to Morgan Stanley.
One of the most important factors in the outlook for the
global economy is the price of oil, having risen 73 percent in
the last 12 months.
Oil pared some of the previous session's gains as Tropical
Storm Dolly looked likely to miss major U.S. oil and gas
production facilities, easing fears of supply disruptions from
the first big storm threat of 2008.
U.S. light crude <CLc1> fell 53 cents to $130.54 a barrel
after gaining more than $3 a barrel on concerns over Dolly in
the previous session.
The euro traded around $1.5917 <EUR=>, about a cent below
an all-time high touched last week. Against the yen, the dollar
inched up 0.1 percent at 106.56 yen <JPY=>.
(Additional reporting by Geraldine Chua in Sydney; Editing by
Anshuman Daga)
