* Asian stocks gain; Shanghai jumps 2.6 pct
* Nikkei at three-month closing high
* Dollar off highs vs euro, yen following weak U.S. data
* Gold and oil extend gains as dollar retreats
(Repeats to more subscribers)
By Kevin Yao
SINGAPORE, Dec 24 (Reuters) - Asian stocks gained on
Thursday, with Tokyo shares hitting their highest in three
months, while the dollar edged away from recent peaks on weak
U.S. housing data.
European equities are also expected to open higher with
Britain's FTSE 100 <> seen as much as 0.4 percent higher,
according to financial bookmakers, following upbeat earnings
from U.S. tech firms. Futures for France's CAC <FCEc1> were up
0.3 percent.
Gold prices <XAU=> advanced 1.6 percent to $1,104, adding
to the previous day's 1 percent gain spurred by the dollar's
retreat and after sliding to a seven-week low on Tuesday. Oil
also extended Wednesday's strong rally, rising 1 percent.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose just over 1 percent, led by Chinese
shares, but trading was thinned ahead of the Christmas and New
Year holidays.
The Thomson Reuters index of Asia ex-Japan equities was up
0.8 percent <.TRXFLDAXPU>.
Shanghai stocks <> jumped 2.6 percent, led by China
State Construction Engineering Corp <601668.SS> on news of
share-buying by its parent, as prospects for China's economic
recovery offset the negative impact of heavy new share
supplies.
"Despite the market's recent fall, the fundamentals
including China's steadily improving economy and prospects for
corporate earnings do not justify lingering weakness," said
Chen Jiuhong, strategist at Haitong Securities in Shanghai.
"We are quite optimistic over the market's trend in the
first quarter of next year," he said.
The Xinhua news agency on Thursday quoted Commerce Minister
Chen Deming as saying China's retail sales will grow more than
15 percent in 2009, latest sign that the economy is on a brisk
recovery path.
Japan's Nikkei <> jumped 1.5 percent to its highest in
three months, lifted by high-tech exporters such as Advantest
<6857.T> after better-than-expected earnings from U.S. peers.
"Investors are welcoming gains in U.S. stocks and
stabilising currency moves. The solid performance of U.S.
technology stocks is particularly positive for the tech-heavy
Nikkei average," said Yutaka Miura, a senior technical analyst
at Mizuho Securities.
U.S. technology shares rose on Wednesday after solid
earnings from Micron Technology Inc <MU.N> and Red Hat Inc
<RHT.N>, but the broader market's gains were capped by the home
sales data.
DOLLAR OFF HIGHS
The U.S. currency hovered below a three-month peak against
the euro <EUR=> and two-month high on the yen <JPY=> hit
earlier this week. The dollar index <.DXY>, a gauge of its
performance against six other major currencies, was also
sitting below this week's three-month high.
The euro is on course for its biggest monthly fall against
the dollar since January and was holding just above its weakest
levels since early September after dipping near $1.42 this
week. Sales of newly built U.S. single-family homes
unexpectedly dropped 11.3 percent last month to a 355,000 unit
annual rate, Analysts had forecast an increase to 440,000
units. For details, see []
The data reminded investors that the path to a recovery
will be bumpy, one day after a larger-than-expected jump in
sales of existing U.S. homes fueled a market rally.
Investors are awaiting more U.S. data, including the
jobless claims due at 1330 GMT, for a clearer picture on the
world's largest economy. Economists in a Reuters survey
forecast a total of 470,000 new filings in the week ended Dec.
19 compared with 480,000 in the previous week.
Meanwhile, oil prices rose above $77 after surging more
than 3 percent the previous day driven by a weak dollar and
U.S. data showing a fall in crude oil stockpiles last week.
U.S. crude for February delivery <CLc1> gained as much as 1
percent to $77.48 a barrel.
(Editing by Kazunori Takada)
