* Stocks rise on first trading day of the year
* Japan Airlines stock jumps 34 pct on report of credit
boost
* Emerging Asian currencies rise on growth optimism
* Oil heads to $80 despite U.S. dollar strength
(Repeats to more subscribers)
By Kevin Plumberg
HONG KONG, Jan 4 (Reuters) - Japanese stocks led Asian
equities higher on Monday and the U.S. dollar climbed against
major currencies on optimism that U.S. employment figures later
in the week will reflect a sustained economic recovery.
Emerging Asian currencies strengthened and regional stocks
outside Japan edged up to a five-month high as the first
trading day of 2010 began on an upbeat note.
Investors focused on bullish indicators, such as figures on
Monday showing manufacturing employment in South Korea at the
highest since January 2008, and ignored the few bearish ones,
like a much larger-than-expected fourth-quarter contraction of
Singapore's economy. [][]
The main event of the week will be the U.S. payrolls
numbers on Friday. The median expectation is for a decline of
20,000 jobs in December, though some dealers appeared to be
placing bets that they would see the first jobs growth in two
years.
"By the end of the week we see gains in risky assets -
equities, commodities, corporate credit and emerging assets,"
said Dariusz Kowalczyk, chief investment strategist with SJS
Markets in Hong Kong, in a note.
* Tokyo's Nikkei share average rose 1.4 percent <>,
led by companies in the technology sector.
Shares of Japan Airlines Corp <9205.T> soared 34 percent
and were the top gainer in the Nikkei after local media
reported a state-owned bank would double its credit line to the
struggling airline. []
* The MSCI index of Asia Pacific stocks outside Japan is up
0.1 percent <.MIAPJ0000PUS> after earlier hitting the highest
since July 31. Technology stocks were outperforming while
financials underperformed.
The index gained nearly 70 percent in 2009, its best
performance since 1993. Analysts see more gains this year but
at a much slower and possibly more volatile pace as interest
rate hikes loom in many countries.
* The Thomson Reuters regional equity index was up 0.3
percent <.TRXFLDAXPU>.
* Euro drops 0.4 percent to $1.4266, with dealers
continuing to slash bets on the common currency, even after it
fell 4.6 percent in December.
* Higher U.S. Treasury yields continue to be supportive of
the dollar against developed currencies.
* In early trading, 10-year U.S. Treasury futures were down
0.1 percent <TYc1>. In December, the contract had its biggest
monthly decline since July 2003.
* Emerging Asian currencies shoot higher on positive growth
prospects, following last week's December manufacturing data
out of China and South Korea. Dollar falls 0.7 percent against
Korean won to 1,115 won <KRW=>.
* U.S. crude for February delivery rose 0.6 percent to
$79.86 a barrel <CLc1>, supported by news Russia has halted oil
supplies to Belarussian refineries after failing to agree on
terms for 2010. []
(Editing by Kim Coghill)
