* Asian stocks hit fresh 17-mth high on rising risk
appetite
* Dollar steadies after Monday's fall
* Oil nears $82 a barrel as winter temperatures plunge
(Repeats to more subscribers)
By Susan Fenton
HONG KONG, Jan 5 (Reuters) - Growing confidence about the
global economy lifted Asian stocks to a fresh 17-month high on
Tuesday as investors continued to be drawn to riskier assets,
while the dollar stabilised after a weak start to the year.
The dollar <.DXY> steadied against a basket of major
currencies <.DXY> after Monday's slide as upbeat manufacturing
data from the United States, India and China bolstered optimism
about a global recovery and encouraged buying of
higher-yielding currencies, commodities and stocks.
"Investors are seeking more risks thanks to better economic
conditions," said Tsutomu Soma, senior manager of foreign
securities at Okasan Securities in Tokyo, but added that could
change if U.S. job data due on Friday disappoints.
"Investors feel they need to have the employment data to
confirm the U.S. economy is improving solidly," Soma said.
Japan's Nikkei share index <> briefly hit a 15-month
high, helped by resources-related shares after prices of copper
<MCU3>, palladium <XPD=> and platinum <XPT=> surged on Monday
to their highest levels since the summer of 2008.
By midday, the Nikkei was up about 1 percent.
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS>, which rallied about 68 percent last year, was
up 0.8 percent at levels last seen in July 2008.
The strength of commodity prices also lifted stocks in
resource-rich Australia, where mining stocks helped drive the
benchmark S&P/ASX 200 index <.AXJ0> up 1 percent.
The Thomson Reuters index of regional shares <.TRXFLDAXPU>
was 0.7 percent higher.
Asian equity investors were encouraged by gains on Wall
Street where the Dow Jones <> rallied 1.5 percent on the
first trading day of the year, reaching a 15-month closing high
after the Institute for Supply Management's manufacturing index
for December hit its highest level since April 2006.
However, David Spry, research manager at FW Holst in
Australia, said the economic recovery in the United States, as
well as in Europe, was still tepid and could limit the upside
in equities.
"I don't think we're going to get a strong, sustained
upswing until those economies start to contribute a bit more
down the track," Spry said.
KOREAN WON INTERVENTION
Investors continued to buy into the high-yielding
Australian dollar <AUD=>, which hit a three-week peak at
$0.9164 to the dollar.
In Korea, foreign exchange authorities were spotted
intervening to stem the won <KRW=> as it rallied to a 15-month
high at 1,146 to the dollar.
Expectations that the central bank could soon raise
interest rates are driving the currency following a string of
bullish data on Asia's fourth-largest economy over the past few
days.
Exceptionally cold weather in the United States and other
big consuming nations pushed oil prices <CLc1> up to near $82 a
barrel.
Gold <XAU=> was trading at $1,120.70 an ounce after hitting
$1,123.40 on Monday, its highest level since Dec. 17, as the
declining dollar triggered buying.
(Additional reporting by Sonali Paul in MELBOURNE and Rika
Otsuka in TOKYO; Editing by Kim Coghill)
(susan.fenton@thomsonreuters.com; +852 2843 6367; Reuters
Messaging: susan.fenton.thomsonreuters.com@reuters.net)
