* Asian shares up as China tightening impact worries fade
* European shares set to open higher
* Australian jobs data supports rate hike view, Aussie up
* Nikkei hits a 15-month high, buoyed by tech shares
(Repeats story to more subscribers)
By Charlotte Cooper
TOKYO, Jan 14 (Reuters) - Asian shares rebounded on
Thursday as fears receded that China's policy tightening would
slow its demand, 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 rose
more than 1 percent, heading back towards a 17-month high
reached on Monday. Regional stocks dropped on Wednesday after
Beijing's surprise increase of bank reserve requirements --
China's strongest step yet to rein in asset inflation. []
European shares were also set to rise, with financial
spreadbetters expecting the FTSE 100 <> to open as much as
0.8 percent higher.
"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.
Tech and materials stocks gained ground after suffereing on
Wednesday on concern that China's import demand would weaken if
tighter policy cooled its rapid economic growth. Shipping firms
also rose.
The MSCI index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> rose 1.2 percent, reversing much of Wednesday's
1.5 percent decline.
Japan's Nikkei average <> rose 1.6 percent to hit a
15-month high. It finished marginally below the intraday high
but the close was still the highest since Oct. 2008.
A rebound had already begun in some markets by late
Wednesday as investors reckoned China's step confirmed a broad
economic recovery and threatened neither growth nor corporate
profits, with eyes turning to U.S. earnings.
After a week of signalling tighter monetary conditions, the
central bank surprised markets on Thursday by leaving the
interest rate on its three-month bills unchanged. Some traders
said the result signalled the central bank would now take a
breather from its tightening campaign. []
Taiwan shares <> closed up 1.1 percent, with computer
maker Acer <2353.TW> hitting a 10-year closing high.
But some investors remained wary, noting that Alcoa's
results early this week had disappointed.
"Hopes for a recovery in the economy and earnings have
returned thanks to the stable state of the U.S. economy and
currency markets, though investors might be getting a little
ahead of themselves in terms of the speed of recovery in
earnings," said Masaru Hamasaki, senior strategist at Toyota
Asset Management.
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 massive capital raising to meet
stricter global rules. But its shares rose 5.7 percent on
Thursday, with analysts saying a rights issue eased worries
about share dilution.
AUSSIE JOBS BOOST
In Australia, 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. []
The Australian dollar advanced 0.7 percent to $0.9301, with
traders looking for a move beyond its 2009 peak of $0.9407. It
climbed 1 percent to 85.33 yen <AUDJPY=R>.
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 0.4 percent to $1.4544 <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 heading back up towards $80 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 $79.93 a barrel after settling at $79.65 on
Wednesday. [] <SETT>
Japanese government bond (JGB) futures fell following a
drop in U.S. Treasuries and as the rise in Tokyo's stock market
reduced demand for lower-risk debt. March 10-year JGB futures
<2JGBv1> dropped 0.14 point to 138.97 after two straight days
of gains.
Spot gold <XAU=> edged up to $1,141.60 per ounce, compared
with New York's notional close of $1,137.60.
(Additional reporting by Jungyoun Park in Seoul, Elaine
Lies, Aiko Hayashi and Rika Otsuka in Tokyo)
