(Refiles to fix typo in headline)
* Asia stocks up 0.5 pct, hit 11-mth high
* Dollar slides, pound and Aussie jump on commodity surge
* China PMI shows factory activity accelerating
(Repeats addtional subscribers)
By Eric Burroughs
HONG KONG, Aug 3 (Reuters) - Asian stocks inched up to an
11-month high on Monday on mounting evidence that the global
economic recovery is picking up speed, giving a boost to oil
and copper prices while hurting the safe-haven U.S. dollar.
Two surveys showed Chinese factory growth accelerating in
July thanks to a revived domestic economy and slight pick-up in
demand for its exports. The China PMI from brokerage CLSA hit a
on-year peak. []
The U.S. economy shrank at a smaller-than-expected 1
percent on an annualised pace in the second quarter, with
economists expecting growth to resume in the second half of the
year after the longest contraction on record.
The improving economic backdrop has contributed to an array
of upbeat quarterly earnings reports around the world,
prompting analyst upgrades to forecasts that are giving
investors more confidence to shift funds into equities.
"Brokers have done a complete reversal in the last week,
with uplifts in forecasts, uplifts in sentiment and commentary
and price targets," said Jamie Spiteri, a dealer at Shaw
Stockbroking in Sydney.
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> edged up 0.5 percent to the highest levels
since early September, taking gains on the year to 47 percent.
Shares of automakers and and banks were among the biggest
gainers.
But Japan's Nikkei share average <> dipped 0.3 percent
and pulled back from a 10-month closing high as investors took
profits and awaited a slate of earnings reports this week.
Among those releasing results later in the day were
Panasonic Corp <6752.T>, Astellas Pharma <4503.T> and Suzuki
Motor Corp <7269.T>.
"Investors in Japanese stocks can't aggressively buy or
sell at this moment as the external environment is holding
steady, with U.S. stocks pausing at high levels," said Yutaka
Miura, a senior technical analyst at Mizuho Securities in
Tokyo.
The dollar hit a 7-1/2-month low against a basket of
currencies, hurt by the rebound in commodity prices on hopes
the healing global economy will boost demand.
The dollar index, a gauge of its performance against a
basket of currencies, was little changed at 78.327 <.DXY> after
initially falling to 78.111, the lowest since December.
The commodity-linked Australian dollar <AUD=D4> jumped to a
10-month high, while the pound <GBP=D4> struck a nine-month
peak against the beleaguered greenback.
U.S. crude oil prices <CLc1> hit a one-month high of $69.75
a barrel, while Shanghai copper futures <SCFc3> soared 5
percent.
The run higher in stocks and upbeat data on economic growth
have put more pressure on safe-haven government bonds. Korean
government bond futures <KTBc1> hit a one-month low and
extended losses after a report on Friday showed industrial
output in June easily beat forecasts.
(Additional reporting by Sonali Paul in Melbourne and Aiko
Hayashi in Tokyo; Editing by Kazunori Takada)
