SINGAPORE, Nov 26 - A big boost to U.S. growth figures lit a fire under Asian exporter stocks on Wednesday, as investors welcomed more evidence demand was healthy in the world's biggest consumer market. Japan's Nikkei average <.N225> rose 1.3 percent in the morning session, led up by Honda Motor Co <7267.T> and other auto stocks after the surprisingly strong U.S. economic data. Honda gained 2.36 percent. An MSCI index of non-Japan Asia markets <.MSCIAPJ> rose 0.26 percent, led by 1.5 percent gains for South Korea's KOSPI and <.KS11> and Singapore's Straits Times index <.STI> by 0220 GMT. "Optimism and confidence over a U.S.-led global economic recovery has regained momentum after the strong U.S. gross domestic product data," said You Seung-min, an analyst at Samsung Securities in Seoul. Japanese banks, led by Mizuho Financial Group <8411.T>, rose after results on Tuesday that showed a return to profit in the first half thanks to higher stock prices, a tax windfall and progress in disposing of bad loans. But U.S. stock markets ended little changed despite the gross domestic product (GDP) data, which showed the economy grew at an 8.2 percent annualised rate in the third quarter, the strongest advance in almost two decades. Even as another report showed consumer confidence at a year high this month the Dow Jones industrial average <.DJI> rose just 0.17 percent to 9,763.94 while the technology-focused Nasdaq Composite Index <.IXIC> dipped 0.21 percent to 1,943.04. "Wall Street was unable to rally despite such a strong reading on GDP. The upside for stocks looks limited right now," said Toshihiko Matsuno, senior strategist at SMBC Friend Securities in Tokyo.
TENSION WEIGHS ON DOLLAR
The dollar was broadly steady as the GDP figures offset worries about tensions in the Middle East and the ballooning U.S. current account deficit. It was barely changed against the Japanese unit at 109.52 yen . The euro was a touch higher from New York levels at $1.1798 and 129.19 yen . U.S. Treasury firmed as investors looked beyond the raft of positive economic data and tried to beef up portfolios before the end of the month. But in Tokyo trade the 10-year note retreated, taking the yield to 4.21 percent from the U.S. closing level of 4.18 percent. Australian shares traded flat as negative earnings pressure for exporters from the robust Australian dollar cancelled out the upbeat U.S. growth figures. The benchmark S&P/ASX 200 index <.AXJO> eased 0.04 percent to 3,190.7. The Aussie dollar eased below 72 U.S. cents, holding within the previous day's range for a gain of 28 percent in 2003. Hong Kong's Hang Seng index <.HSI> was similarly uninspired by the data, trading down 0.1 percent, and Taiwan's weighted index <.TWII> was off 0.24 percent, erasing early gains. South Korea's stock market was led higher by Hyundai Motor <005380.KS>. The country's top car company, which exports more than half of its sales, climbed three percent after a rating upgrade by Moody's Investors Service on Tuesday. Singapore's Straits Times index jumped after Tuesday's holiday, led by property developers and Singapore Airlines . Spot gold was slightly higher at $390.90, with dealers expecting narrow range trading to prevail through the session. NYMEX crude oil futures edged higher from New York's closing levels, with January crude up 12 cents higher at $29.89 a barrel.//