(Updates prices, adds detail)
By Rafael Nam
HONG KONG, Feb 14 (Reuters) - Asian stocks powered higher
on Thursday after a surprise increase in U.S. retail sales and
unexpectedly strong growth in Japan's economy helped eased
fears about a sharp global slowdown.
Asian bonds slid as investors saw less need for safe-haven
investments, while the dollar held around a one-month high
against the yen.
Platinum hit a record high as power supply problems afflict
major producer South Africa, but oil prices steadied after
climbing a day earlier on the intensifying legal row between
Venezuela and Exxon Mobil <XOM.N>.
"Buoyant U.S. economic data combined with a perception that
(stock) markets have seen lows are prompting buying interest,"
said Hwang Geum-dan, an analyst at Samsung Securities.
MSCI's measure of Asian stocks outside Japan
<.MIAPJ0000PUS> rose 2.7 percent by 0331 GMT, its biggest gain
in two weeks.
The index had dropped more than 13 percent this year as of
Wednesday as fears of a U.S. recession and the global credit
crisis soured many investors on Asian stocks.
The rise in U.S. retail sales last month lifted hopes that
Asia's top export market might yet skirt recession, buoying
shares such as LG Electronics <066570.KS> that depend on U.S.
consumers to drive profits. []
Shares in South Korea <>, Singapore <.FTSTI> and
Taiwan <> rose above 2 percent each, while Hong Kong's
benchmark index <> gained some 3 percent. Shanghai <>
added 1.2 percent.
Indonesian stocks <> rose 2.1 percent after Fitch
Ratings raised the country's foreign and domestic currency debt
to BB from BB-minus, citing aggressive structural reforms.
[]
TOO MUCH PESSIMISM?
Confidence that overseas shipments from the region will
hold up were further bolstered after Japan said its economy
grew 0.9 percent in the last quarter of the year, double the
expected rate, powered by exports and capital expenditure.
[]
"The GDP data showed Japan's economy was doing better than
people thought, suggesting there had been too much pessimism
over the growth outlook," said Koji Ochiai, a senior market
analyst at Mizuho Securities.
But some economists still warned of a likely slowdown this
year in the world's second-biggest economy, with the Bank of
Japan starting on Thursday a two-day policy meeting that is
expected to lead to no changes to interest rates.
"The figures were strong but it is unlikely the Bank of
Japan will change the direction of its policy decisions," said
Yasuhiro Onakado, chief economist at Daiwa SB Investments.
The Nikkei benchmark stock average <> was up 2.9
percent, with exporters such as Sony Corp <6758.T> also lifted
by a weakening Japanese yen.
The yen <JPY=> held steady against the dollar around 108.15
yen after the U.S. currency jumped on Wednesday.
Japanese government bond futures fell on the back the GDP
data, with March 10-year JGB futures <2JGBv1> down 0.19 point
at 137.75.
Other economies are grappling with slower growth outlook,
with Singapore saying its economy shrank more than expected as
weak manufacturing dragged on growth. []
Yet for some, pockets of strong internal growth and rising
inflationary pressures are putting some of the central banks
across the region in a bind at a time of slowing global demand.
Australia's jobless rate surprised by falling to a 33-year
low in January, adding to concerns the drum-tight labour market
was stoking inflation and cementing the case for an urgent rise
in interest rates. []
The Australian dollar <AUD=> jumped across the board on the
data, while stocks <> rose 2.1 percent lifted by top
miners BHP Billiton Ltd <BHP.AX> and Rio Tinto Ltd <RIO.AX>.
PLATINUM HITS HIGH
Certain commodity prices extended their recent climb, with
spot platinum <XPT=> hitting a record $1,995 an ounce, before
slipping to $1,976 in Asian trade.
U.S. crude oil futures <CLc1> edged up a few cents to
$93.32 a barrel. Venezuela and Exxon Mobil have been mired in a
legal dispute over the South American country's takeover of a
multibillion-dollar oil project.
