* Focus on Intel's outlook for business spending
* U.S. dollar stabilises near lows, oil stays above $73
* Also due this week: Fed minutes, Goldman and GE earnings
(Repeats to more subscribers)
By Kevin Plumberg
HONG KONG, Oct 13 (Reuters) - Asian stocks rose to a
14-month high and the U.S. dollar steadied on Tuesday, with
some investors taking bets that third-quarter U.S. corporate
earnings, expected to shrink for the ninth quarter, will be
good enough to keep a rally going.
Major European stock markets <> were little changed
in early trade ahead of company results this week from such
bellwethers as Intel <INTC.O>, Goldman Sachs <GS.N> and General
Electric <GE.N>.
Investors are looking for stronger revenues to both confirm
a global economic recovery and justify higher share price
valuations after a seven-month-long equity rally. Profits last
quarter were largely underpinned by cost cutting, not a rebound
in consumer or business demand.
Oil prices rose for a fourth day after settling at a
seven-week high on Monday. A steady 11 percent decline in the
U.S. dollar against a basket of currencies since March has
supported commodity prices.
Wall Street finished higher on Monday, but late session
profit-taking made some investors unsure how to play results
from Intel, the world's biggest chip maker, which is due to
report after New York market close on Tuesday. []
The focus will be on the outlook for business spending
given Intel's global reach.
"When Intel reports earnings, its outlook will likely be
particularly in focus. If chipmakers were to say they expect
demand to increase, that would mean the economy is on the
mend," said Mitsuo Shimizu, deputy general manager at Cosmo
Securities in Tokyo.
ASIAN ENERGY, FINANCIAL STOCKS GAIN
After a long holiday weekend, Japan's Nikkei share average
<> rose 0.6 percent, with electronics and car maker stocks
among the main supports to the index.
The MSCI index of Asia Pacific shares outside Japan
<.MIAPJ0000PUS> rose 0.7 percent in choppy trading to the
highest since Aug 12. The energy, financial and
telecommunications sectors outperformed, while industrials, IT
and consumer discretionary underperformed.
The all-country world equities index hit a 1-year high on
Monday and looked set to test that high on Tuesday.
South Korea's benchmark KOSPI <> fell 0.7 percent, the
worst performing major market in the region, on fears earnings
may peak in the third quarter. []
A report that Norea Korea was preparing to fire more
short-range missiles a day after it launched five off its east
coast had a limited impact on financial markets.
This week 29 companies in the S&P 500 will post results.
The entire S&P 500 is expected to show earnings shrank 25
percent in the third quarter compared with a year ago, though
financials will reflect the highest growth rate of any
industry, at 58 percent, Thomson Reuters research showed.
In currency markets, the U.S. dollar had a respite. The
euro was largely unchanged at $1.4780 <EUR=> and the dollar was
trading up 0.3 percent to 90.07 yen <JPY=>.
The ICE Futures U.S. dollar index <.DXY>, which gauges its
value against a basket of six other major currencies, was up
0.1 percent but still close to a 14-month low hit last
Thursday.
After a drubbing last week, U.S. Treasuries rose, with the
benchmark 10-year yield slipping to 3.35 percent from 3.38
percent <US10YT=RR> late on Friday in New York.
Minutes of the last Federal Reserve policy meeting due on
Wednesday will be of particular interest given recent comments
from Fed Chairman Ben Bernanke that were interpreted by dealers
as being hawkish on interest rates.
U.S. crude for November delivery rose 11 cents to $73.38 a
barrel <CLc1>, after rising for three straight sessions to
settle at a seven-week high the previous day. Brent was at
$71.56 <LCOc1>.
A monthly report by producer group OPEC, due later in the
day, as well as the direction of equity markets, could also
offer clues on the outlook for global oil demand.
"Sentiment is moderately positive, and while fundamentals
do not necessarily justify higher prices, the trend of a weaker
dollar has been a big boost," said Sumisho Sano, General
Manager of Research at SCM Securities in Tokyo.
(Additional reporting by Aiko Hayashi in TOKYO and Jennifer
Tan in SINGAPORE)
(Editing by Kim Coghill)
