* Asian shares rebound from losses; HSBC, banks surge
* Rise seen temporary reprieve in otherwise weak market
* Nikkei weak, weighed down by drugs sector
* Dollar gives up gains, gold eases
* Oil prices steady above $47 a barrel on OPEC cut fears
By Rafael Nam
HONG KONG, March 10 (Reuters) - Asian shares rebounded on
Tuesday from a three-session losing streak, while the
safe-haven bid on the dollar retreated in moves seen as a
momentary reprieve from concerns about the weak outlook for the
global economy.
Asian share gains were led by banks, including heavyweight
HSBC <0005.HK>, which has taken a pounding on concerns about
capital raising and the dire state of the world's financial
system.
However, Japan's Nikkei average <> dipped lower to
trade close to a 26-year intraday low, led by worries about the
global competitiveness of the country's drugs sector following
a $41 billion merger in the United States.
Oil prices edged up above $47 a barrel on expectations for
more OPEC output cuts and geopolitical concerns after the
United States said five Chinese ships, including a naval
vessel, harassed a U.S. Navy ship in international waters.
[]
"It is hard to think that stocks will turn to an upward
trend given the credit situation. The dollar is likely to
retain its safe-haven status," said Kazuyuki Kato, treasury
department manager at Mizuho Trust and Banking Co in Japan.
"But since gains in the dollar have progressed to a
considerable degree, the currency will face its peak at some
level," he said.
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> advanced 1.2 percent after losing 1.7 percent
over the previous three sessions.
Those gains helped the dollar retreat against the euro and
other major currencies, after it rose last week to a three-year
high.
Confidence in policy makers' efforts to revive global
economic growth will be key to a sustained rebound in global
equities, with key indexes such as the U.S. the Dow Jones
industrial average <> trading at about 12-year lows.
U.S. Treasury Secretary Timothy Geithner said on Monday
that the United States has taken more action in recent weeks to
tackle its economic problems than other countries have done in
years, trying to reassure lawmakers U.S. recovery efforts are
on track. []
"We're doing more in weeks than other countries do in
years," Geithner told Reuters after briefing U.S. Democratic
lawmakers on the progress of the Obama administration's plans.
SOME LESS PESSIMISTIC
The rise in Asian shares was led by a 2.5 percent gain in
Hong Kong stocks <>. South Korea <>, Australia
<>, Taiwan <> and Singapore <> posted more modest
gains.
HSBC <HSBA.L> jumped 13.2 percent after news of its
upcoming rights issue had led shares in the lender to slump on
Monday to its lowest since 1995.
Banking shares elsewhere also advanced, with South Korea's
Woori Finance Holdings <053000.KS> up 6.2 percent.
Though Asia has been spared the sort of writedowns of bad
debt seen elsewhere, the global financial crisis is still
spreading to regional economies, sparking concerns as companies
cut borrowing and struggle to repay business loans.
Among Tuesday's decliners, the Nikkei <> slid 0.7
percent to 7,033.27, weighed down by drugmakers such as
Astellas Pharma <4503.T>. The average booked a 26-year closing
low on Monday of 7,086.03 and it is hovering just above a
26-year intraday low traded last October of 6,994.90.
Investors are worried the Japanese drugs sector will be
less competitive in the global market place after Merck <MRK.N>
of the United States proposed to take over Schering-Plough
<SGP.N> for $41 billion. []
The dollar gave up some recent gains. The euro advanced 0.2
percent to $1.2637 <EUR=> after touching a three-month low of
$1.2457 last week.
Sterling rose 0.3 percent to $1.3815 <GBP=D4> after falling
more than 2 percent to its lowest in more than a month on
Monday.
The head of the European Central Bank, Jean-Claude Trichet,
said on Monday the global economy was still slowing but that
there were signs a turning-point may be near. []
"We are identifying a number of elements in the global
economy ... that are expansionary," said Trichet, who also
chairs the Group of 10 central bankers.
"We have a number of elements that are suggesting that we
are approaching the moment where we would have a pickup."
The yen though continued to suffer on worries about the
world's second-largest economy, which data showed on Monday
posted its first current account deficit in January in 13
years.
Sterling gained 0.4 percent to 136.64 yen <GBPJPY=R>, and
the Australian dollar jumped 1 percent to 63.01 yen <AUDJPY=R>.
Japanese government bonds edged lower on supply concerns
after Japan's finance minister, Kaoru Yosano, said the
government would take whatever steps were needed to keep the
economy afloat.
June government bond futures <2JGBv1> fell 0.26 point. The
benchmark 10-year-yield rose 0.5 basis point to 1.300 percent
<JP10YT=RR>, hovering near a three-week high of 1.31 percent
reached last week.
In commodity markets, oil prices <CLc1> edged up 12 cents
to $47.19 a barrel. Crude was partly supported on expectations
that weekly U.S. inventory data due later in the day would show
another fall in crude stocks.
Gold <XAU=> dipped about $4 to $916.60 an ounce, retreating
further from an 11-month high above $1,000 marked on Feb. 11.
