Monday February 9, 06:36 AM
GLOBAL MARKETS-Asia stocks edge up on U.S. plan hopes
By Elaine Lies
TOKYO, Feb 9 (Reuters) - Asian stocks rose on Monday amid hopes that a massive U.S. stimulus package would bolster the global economy, while the dollar retreated after hitting a one-month high against the yen.
Hong Kong shares added 0.7 percent, heading for a fourth day of gains and their longest winning streak in two months.
But gains in equity markets were tempered by caution over the contents of both the U.S. stimulus package and a new plan to rescue the U.S. banking system. Japan's benchmark Nikkei (news) share average turned negative in the afternoon, falling 0.7 percent on the day.
'Until the bank plan's out, nobody can really buy. There's just too much that's unknown,' said Noritsugu Hirakawa, a strategist at Okasan Securities.
'As for how the markets will respond to the bank plan, it really depends on whether it's something that can be carried out or not. If it doesn't satisfy expectations, there's the chance the market could really fall,' Hirakawa said.
Banks worldwide have been laid low by huge losses on U.S. mortgage-related debts, making them more reluctant to lend. The scarcity of credit is choking many businesses, forcing them to cut back production and jobs, adding to the economic gloom.
Wall Street rallied broadly on Friday after figures showing U.S. job losses in January were the worst in 34 years sparked hopes that Congress will move quickly to pass the stimulus package to help the economy.
But the U.S. administration pushed back the announcement of the keenly awaited bank rescue plan until Tuesday from Monday as it pressed lawmakers to settle their differences over the huge stimulus plan.
Squabbling over the U.S. rescue plan was set to continue on Monday, when the Democratic-led Senate votes to end debate on an $827 billion rescue package so it can be passed on Tuesday.
U.S. President Barack Obama has demanded that the bill be on his desk for signing into law by next Monday.
The Nikkei fell even as exporters such as Honda Motor Co (Stuttgart: HDM.SG - news) and Toyota Motor Corp (Frankfurt: TOM.F - news) rose, shrugging off Toyota's forecast of a larger than expected loss on Friday. Dealers said the bad news in the auto sector had been widely expected as global economic conditions worsen.
But shares in Nomura Holdings Inc (N33.SI - news) , Japan's biggest brokerage, sank 14.3 percent amid concerns that a plan to issue up to $3.3 billion in new stock to bolster its capital would dilute earnings.
The MSCI index of Asia-Pacific (002790.KS - news) stocks outside Japan rose 0.3 percent.
CHINA HOPES
Shanghai copper rose for a fifth straight session on growing hopes that China, the world's largest consumer of the industrial metal, could soon see a recovery in its economy. Prices of the red metal had surged more than 8 percent on Friday.
Stronger base metals prices bolstered shares of global miners such as Rio Tinto Ltd (Munich: CRA1.MU - news) /Plc, whose 5.6 percent gain
helped lead the Australian market 1 pecent higher.
But gold slipped as players took profits after a recent rally, with rising expectations that the U.S. stimulus package was likely to steer some funds away from gold as risk appetite rises..
The dollar hit a one-month high against the yen before falling back due to selling by Japanese exporters.
There was little reaction to data showing Japan's current account surplus fell 92.1 percent in December from a year earlier.
The dollar fell 0.9 percent to 91.16 yen after climbing to 92.42 yen earlier on trading platform EBS, its highest since early January.
The euro dipped 0.1 percent to $1.2924.
The yield on the benchmark 10-year U.S. Treasury note fell 3 basis points from late U.S. trading on Friday to 2.967 percent . On Friday, the 10-year Treasury yield briefly rose to 3 percent for the first time since late November.
The benchmark 10-year Japanese government bond yield fell 1.5 basis point to 1.315 percent.
Oil took a breather from its recent decline and steadied around $40 a barrel as hopes that swift passage of the U.S. stimulus package outweighed demand concerns, with U.S. crude for March delivery steady at $40.17.
((For the state of play of Asian stock markets please click on:))
(Additional reporting by Masayuki Kitano; Editing by Kim Coghill) Keywords: MARKETS GLOBAL
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