* Asian stocks, commodities steadier after Friday fall
* Investors hunting for bargains in riskier assets
* Weak euro zone members, sluggish economies still a
concern
* BHP kills Potash bid, revives buyback; shares rise
By Ian Chua
SYDNEY, Nov 15 (Reuters) - Investor demand for riskier
assets made a tentative comeback on Monday, with commodity
prices steadier and Asian stock markets scoring modest gains, a
session after their biggest one-day fall in over four months.
Commodity currencies such as the Australian dollar <AUD=D4>
clawed off the lows plumbed on Friday, when fears that
fast-growing China will have to lift interest rates to curb
inflation gripped markets.
But factors that unsettled investors on Friday persisted,
suggesting the small bounce in risk assets was more a result of
bargain hunting after the selloff, rather than a sustained
recovery in risk appetite.
There was little clarity on Ireland's funding problems
after the country did not rule out the possibility it may have
to turn to Europe for help in dealing with its debt crisis, but
said no application had been made for assistance yet.
[]
"Overall, sentiment remains fragile as European bond
concerns taken together with worries about monetary tightening
in China have resulted in risk appetite declining," said Mitul
Kotecha, head of global fx strategy at Credit Agricole in Hong
Kong.
Data showing Japan's economy grew more than expected in the
third quarter did little to cheer investors and many economists
expect the economy to slow, or even contract, in the fourth
quarter as consumption and exports lose momentum.
[]
Markets also drew no comfort from the G20 and APEC
meetings, which left leaders of the world's most powerful
economies little closer to agreeing how to prevent fresh
crises.
Many analysts said markets had been due for a pullback
regardless, as profit taking set in after a months'-long rally
and traders prepared to close their books heading into
year-end.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
More stories on APEC leaders' meeting: []
More on G20 issues:
[] PDF of G20 battle on imbalances:
http://r.reuters.com/jux34q
For a description of the EU safety net: []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 0.2 percent, having slid 1.9 percent on
Friday in its the biggest one-day percentage fall since late
June. For the week, the index dropped 3.4 percent.
Japan's Nikkei average <> climbed 0.7 percent and
South Korea's KOSPI <> edged up 0.5 percent. Australia's
S&P/ASX 200 index <> advanced 0.4 percent.
China's key stock index <> inched 0.1 percent higher,
after Friday's 5.2 percent tumble, while Hong Kong's Hang Seng
index <> edged up 0.3 percent.
BHP JUMPS AFTER TAKEOVER SCRAPPED
Among the gainers, BHP Billiton <BHP.AX> rose 0.4 percent,
after the top global miner scrapped its $39 billion bid for
Potash Corp <POT.TO> and said it would return $4.2 billion to
investors through a share buyback. []
With the selloff in risky assets appearing to pause, the
U.S. dollar softened, and the euro and commodity currencies
recovered some lost ground.
The euro <EUR=> popped above $1.3700, having traded as low
as $1.3571 -- a level not seen since late September.
The Australian dollar <AUD=D4> climbed towards $0.9900, off
the low of $0.9825 set on Friday, but it still remained some 3
percent below a 28-year high around $1.0182 set last week.
"Still, we don't want to sound too gloomy because we
aren't," said John Kyriakopoulos, fx strategist at National
Australia Bank, about the local currency.
He noted a recovery in China's manufacturing PMIs since
July pointed to a re-acceleration in industrial production
growth, which should be supportive of commodity prices.
In Europe, he expected the 750 billion euro stabilisation
fund would limit the fallout from Ireland, while the U.S.
Federal Reserve printing another $600 billion could put a high
floor under stock prices.
On the London Metal Exchange (LME), benchmark copper
<CMCU3> climbed 0.6 percent to $8665.00 a tonne, having fallen
almost 3 percent on Friday, while gold <XAU=> rose to $1,372.25
an ounce from a one-week low of $1,359.70 seen on Friday.
U.S. crude oil <CLc1> rose above $85 a barrel from one-week
lows of $84.52 plumbed on Friday, still not far off a 25-month
high of $88.63 hit last Thursday.
(Additional reporting by Wayne Cole in Sydney)
(Editing by Kim Coghill)
