* Asian shares up as China tightening impact worries fade
* Australian jobs data supports rate hike view, Aussie up
By Charlotte Cooper
TOKYO, Jan 14 (Reuters) - Share markets in Asia rebounded
on Thursday as worries that China's policy tightening would
slow its demand receded, while strong Australian jobs data
raised the chances of a February interest rate hike and boosted
the Aussie dollar.
Helped by an upbeat day on Wall Street, Asia stocks
recouped 1 percent, having tumbled on Wednesday after Beijing's
surprise increase of bank reserve requirements -- China's
strongest step yet to rein in asset inflation. []
In Australia, shares <> rose nearly 1 percent as
miners gained, while jobs data for December beat forecasts and
the market priced in a 75 percent chance of a rate rise at the
next policy meeting, sending the Aussie dollar <AUD=D4> up and
the low-yielding yen <JPY=> down.
Shanghai's key stock index <>, which fell 3.1 percent
on the monetary tightening, struggled to hold gains but Tokyo's
Nikkei index <> neared a 15-month high and the MSCI index
of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> rose 1
percent, heading back towards a recent 17-month high.
Tech and materials stocks led the rebound, gaining ground
after being hit a day earlier by concern that China's purchases
of imports could suffer if policy tightening cooled its rapid
economic growth.
"The market is recovering as investors are relieved to see
U.S. shares recover fairly quickly after news of China's
monetary tightening moves," said Lee Kyoung-su, a market
analyst at Taurus Investment & Securities.
"Technology issues in particular are going strong amid
strengthening earnings expectations. Positive hopes are brewing
ahead of key U.S. technology company earnings, including Intel
<INTC.O> and IBM <IBM.N>," Lee said.
A rebound had already begun in some markets by late
Wednesday as investors took the view that China's step
confirmed a broad economic recovery and threatened neither
growth nor corporate profits.
The Dow Jones industrial average <> ended up 0.50
percent while the Standard & Poor's 500 Index <.SPX> climbed
0.83 percent and the Nasdaq Composite Index <> 1.12
percent.
Seoul shares <> rose 0.9 percent, helped by rebound in
shipbuilders and technology issues including LG Display
<034220.KS> and Hyundai Heavy Industries <009540.KS>, while
POSCO <005490.KS> edged up before its quarterly results.
In China, banks and property stocks initially gained but
top lender Industrial and Commercial Bank of China <601398.SS>
later fell 0.8 percent and the main index <> was flat.
In Japan, Mizuho Financial Group <8411.T>, the country's
second-largest bank by assets, is considering a rights offering
as a way to boost its capital, Bloomberg reported.
The bank shed more than a third of its market value in 2009
on concerns it would need a massive capital raising to meet
stricter global rules. But its shares rose 5.1 percent on
Thursday, with analysts saying a rights issue eased worries
about share dilution.
The Australian dollar advanced 0.6 percent to $0.9295, with
traders looking for a move beyond its 2009 peak of $0.9407. It
climbed 0.9 percent to 85.16 yen <AUDJPY=R>.
A net 35,200 new jobs were created in Australia in December
and the jobless rate dropped to 5.5 percent, the lowest since
April. []
The Australian dollar gained last year as the market
anticipated the central bank would lead other developed nations
in tightening policy. It has already lifted its key cash rate
by 75 basis points to 3.75 percent in contrast to the likes of
the United States and Japan where rates are close to zero.
"The positive news from Australia has cheered investors,
prompting them to seek more risks," said Hideki Amikura, deputy
general manager at Nomura Trust and Banking in Tokyo.
The yen also lost ground against the dollar, euro and New
Zealand dollar. The dollar index <.DXY> <=USD>, a measure of
its performance against six other major currencies, eased 0.1
percent.
The euro rose 0.2 percent to $1.4540 <EUR=> as market
players waited for a European Central Bank meeting at which it
is expected to flag that it will keep rates at a record low of
1.0 percent for some time.
U.S. crude futures were steady after falling for three days
in a row on builds in U.S. inventories despite colder weather.
NYMEX crude for February delivery <CLc1> stood at $79.86 a
barrel aftera settling at $79.65 on Wednesday. []
Spot gold <XAU=> edged up to $1,141.90 per ounce, compared
with New York's notional close of $1,137.60.
(Additional reporting by Jungyoun Park in Seoul, Rika Otsuka
in Tokyo)
(Editing by Kim Coghill)
