* Asia stocks up 0.8 pct, touch 11-mth high
* Dollar down, Aussie at 10-mth peak; oil tops $70 a barrel
* Carmakers, tyremakers jump as US clunker programme
extended
* China factory activity accelerates, bank lending cools
By Eric Burroughs
HONG KONG, Aug 3 (Reuters) - Asian stocks crawled up to an
11-month high on Monday as Chinese shares cheered more signs of
economic activity picking up speed, giving a boost to oil and
copper prices while hurting the safe-haven U.S. dollar.
European shares were set to open higher, with futures on
the Dow Jones Eurostoxx 50 <STXEc1> up 0.3 percent.
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 purchasing managers index
from brokerage CLSA hit a one-year high. []
The U.S. economy shrank at a smaller-than-expected 1
percent 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.
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> edged up 0.8 percent to the highest levels
since early September last year, taking gains on the year to 47
percent.
That has far outpaced the 17 percent rise in the MSCI
benchmark for world stocks <.MIWD00000PUS> and 11 percent
increase in the MSCI index for Japan <.MIJP00000PJP> as
investors placed their bets on growth in emerging markets,
particularly Asia.
Seoul's KOSPI index <> rose 0.5 percent as foreign
investors were net buyers of South Korean shares for a 14th
straight session.
"Foreign investor buying continues to be strong, which
comes as a positive signal," said Park Suk-hyun, a market
analyst at KTB Securities in Seoul.
Shares of automakers and tyremakers were among the biggest
gainers after the U.S. Congress moved to triple the funding for
the "Cash for Clunkers" car programme, aimed at helping
households replace older gas-guzzling vehicles with new models.
[]
Mazda Motor <7261.T> jumped 5 percent and Nissan Motor Co
<7201.T> gained 6 percent. Japan's largest tyremaker,
Bridgestone Corp <5108.T>, was up 4.9 percent. South Korea's
Hankook Tire <000240.KS> climbed 7.6 percent after Goldman
Sachs upped its price target.
But Japan's Nikkei share average <> was flat near a
10-month high. It struggled in negative territory for most of
the day as investors took profits before a slate of earnings
reports this week.
"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 Shanghai Composite Index <> rose 1.5 percent and
outperformed the rest of the region following the upbeat
manufacturing data.
But bank shares retreated after sources told Reuters that
China's big four state banks extended about $24 billion in new
loans in July, marking a sharp slowdown from the lending surge
during the first six months of the year. []
Worries that Chinese officials may take steps to cool
lending were one factor behind the Shanghai Composite's tumble
last Wednesday. Still, the Chinese benchmark rose 15 percent in
July, the biggest monthly gain since the height of the 2007
bull market.
Industrial and Commercial Bank of China <1398.HK>
<601398.SS>, the world's largest bank by market value, was down
about 1 percent in both Hong Kong and Shanghai, bucking the
broader market's rise.
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 six
major currencies, was little changed at 78.32 <.DXY> after
initially falling to 78.11, the lowest since December and
looking poised to test its low then at 77.68.
The commodity-linked Australian dollar <AUD=D4> jumped to a
10-month high of $0.8394, while the pound <GBP=D4> struck a
nine-month peak against the beleaguered greenback.
The Aussie's gains come before a policy decision by the
Reserve Bank of Australia on Tuesday at which the central bank
may shift towards a more neutral policy stance, making it among
the first to take steps towards an eventual hike in interest
rates from the current 3 percent. []
U.S. crude oil prices <CLc1> hit a one-month high of $70.33
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 blew past forecasts.
(Additional reporting by Sonali Paul in Melbourne and Aiko
Hayashi in Tokyo; Editing by Neil Fullick)
