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* Dollar trims gains as investors pocket profits
* Japan shares hit 6-wk high, U.S. jobs data helps
* Gold extends losses prompted by dollar rebound
* European share markets set to open lower
By Susan Fenton
HONG KONG, Dec 7 (Reuters) - The dollar trimmed gains on
Monday as investors pocketed profits after Friday's rally while
shares of Asian exporters and tech companies rose after strong
U.S. jobs data bode well for a global economic recovery.
However, the jobs report also sparked speculation that U.S.
interest rates could rise sooner than expected, limiting
overall gains in several Asian markets and pushing U.S. equity
futures <SPc1> down 0.2 percent. European stocks were set to
dip at the opening, according to financial spreadbetters.
The dollar eased after posting its biggest one-day gain
this year on Friday, jumping 2.5 percent on news that U.S.
employers cut only 11,000 jobs last month, the smallest decline
since the start of recession in December 2007.
The dollar was down 0.5 percent against a basket of
currencies <.DXY> by Monday afternoon.
U.S. Treasuries were steady in Asia after Washington cut
its estimate of the cost of the government's bail-out of the
nation's big banks by at least $200 billion. []
The 10-year Treasury yield held near a three-week high hit
on Friday after the jobs report.
The jobs data underpinned investor sentiment across Asia,
raising hopes that a strengthening U.S. economy will support
demand for Asian exports and a global economic recovery.
However, the prospect of the Federal Reserve possibly
bringing forward its first tightening, adding pressure on Asian
rates to rise, made investors reluctant to push shares much
higher following sharp gains in recent months.
All eyes will be on Fed Chairman Ben Bernanke, due to speak
at 1745 GMT, for any hints on the rate outlook.
"Despite the positive job data, U.S. stocks did not eke out
as many gains as they should have amid concerns the Fed may
raise the key interest rate prematurely. But we do not think a
rate hike will come until the second half of next year," said
Chung Myoung-gi, an analyst at Samsung Securities in Seoul,
where the benchmark index <> edged up 0.5 percent.
JAL JUMPS 7 PCT
Asian tech shares rose in anticipation of higher demand
driven by U.S. economic recovery, boosting share markets in
Japan, Korea and Taiwan.
Japan's Nikkei index <> jumped 1.5 percent to a
six-week closing high, as the yen's first drop below 90 to the
dollar <JPY=> in four weeks, bolstered Japanese exporters.
Taiwan's tech-heavy share index <>, and TSMC
<2330.TW><TSM.N>, the world's biggest contract chip maker, both
jumped 1.6 percent.
"The U.S. jobs data has sparked interest in a greater range
of riskier assets, and this is sending investors back to
stocks," said Hiroichi Nishi, general manager of equities at
Nikko Cordial Securities in Tokyo.
However, resource stocks were hurt by a retreat in gold and
commodities prices, dragging down shares in Australia and gold
stocks in Hong Kong.
Shares of debt-laden Japan Airlines Corp <9205.T> rallied 7
percent after a government source said the cabinet was
considering guaranteeing around $7.8 billion in loans and other
funds to the struggling carrier. []
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS>, which has rallied 66 percent this year, was
little changed while the Thomson Reuters index of regional
shares <.TRXFLDAXPU> was down 0.4 percent, dragged lower by a
dip in shares in Australia, where falling commodities prices
outweighed data showing a surge in Australian job
advertisements last month.
Shares of Australia's largest listed gold miner Newcrest
Mining <NCM.AX> tumbled 6 percent as gold kept retreating from
recent peaks. COMEX February gold <GCG0> was down 1 percent at
$1,157.2 an ounce, after sliding 4 percent in New York on
Friday.
Copper futures in Shanghai dipped 0.3 percent but metals
prices have been less affected by the dollar's rebound than
gold.
"Prices of metals, with the exception of gold, have been
pretty much unscathed. It means that speculators still want to
push prices higher," said Zhu Yanzhong, an analyst at Jinrui
Futures in Shanghai.
Oil <CLc1> edged up 0.4 percent to $75.75 a barrel on the
view that U.S. oil demand would increase in tandem with
economic recovery.
(Additional reporting by Elaine Lies in TOKYO, Jungyoun Park
in SEOUL and Rujun Shen in SHANGHAI; Editing by Tomasz
Janowski)
