SINGAPORE, Dec 19 - Surprisingly strong U.S. jobs and manufacturing data boosted Asian stock markets on Friday, but the dollar was steady near record lows against the euro as investors worried about U.S. deficits and global security. The unexpectedly steep drop in jobless claims and a jump in regional manufacturing, despite forecasts for a decline, reassured investors that the U.S. economic rebound was well on track, but the dollar failed to keep gains made in New York. Financial bookmakers in London expected Britain's FTSE <.FTSE> to open about 0.2 percent higher, Germany's DAX <.GDAXI> to start 0.5 percent up and France's CAC-40 <.FCHI> to begin about 0.4 percent higher. Japanese shares <.N225> closed 1.8 percent higher at 10,284.54, taking their lead from a rebound in the Nasdaq and a rise in U.S. blue chips to the highest level in about 19 months. Strong semiconductor industry data boosted chip issues such as Adventest Corp <6857.T>. "I think high techs are the core sector to lead the market higher when the New Year begins," said Tsuyoshi Nomaguchi, a strategist at Daiwa Securities.
At 0615 GMT, an MSCI index of Asia Pacific shares outside Japan <.MSCIAPJ> was up 0.7 percent, near a three-year high hit on Monday. Oil prices were steady at $33.82, eight cents off a nine-month high hit in New York on forecasts for cold weather in the United States. Gold edged higher, while copper prices eased after hitting a six-year high in New York on supply concerns. The dollar was fetching 107.63 yen , barely changed from the late New York level and off a three-year low hit last week around 106.74. The euro was steady at $1.2412 after it hit a record high above $1.2438 in Thursday trade. The euro has risen more than 18 percent against the dollar this year and is up about 50 percent from the record lows it hit in 2000. The yen has risen about nine percent against the dollar this year, hurting exporters.
ASIAN CHIPS JUMP
Technology stocks were heartened by a U.S. trade group saying orders for microchip-making equipment from North American manufacturers had risen seven percent in November from a month earlier, indicating an upturn for next year. Adventest Corp <6857.T> climbed 2.9 percent, while Fujitsu Ltd <6702.T> rose 2.4 percent. Japanese auto stocks also rose, with Toyota Motor Co <7203.T> up 1.4 percent and Honda Motor <7267.T> up 2.6 percent. Shares in Taiwan <.TWII> fell 0.2 percent, hurt by lingering fears of a fresh outbreak of SARS. Australia <.AXJO> gained 0.3 percent, while South Korean shares <.KS11> climbed 0.5 percent, lifted by steel giant POSCO <005490>, which was up 2.3 percent, and technology bellwether Samsung Electronics <05930.KS>, which rose 1.4 percent. Hong Kong's Hang Seng Index <.HSI> was up more than one percent at the midday break, led by heavyweight Chinese oil and industrial stocks.
U.S. stocks rose on Thursday as the upbeat economic data helped send the blue-chip Dow <.DJI> up one percent and the tech-heavy Nasdaq <.IXIC> up 1.81 percent. The government said new claims for jobless benefits had fallen to a low of nearly three years hit in early November. Other data showed manufacturing in the mid-Atlantic region of the United States had jumped in December from an already strong level, despite forecasts for a slight drop. U.S. Treasuries rose despite the economic data. The benchmark 10-year note was yielding 4.15 percent in Asia. Japanese government bonds edged higher after a good 20-year bond auction, with the yield on the benchmark 256th 10-year cash bond <0#JPTSY=JBTC> down 2.5 basis points at 1.325 percent. Spot gold was quoted at $410.25 an ounce compared with New York's last quoted level of $409.90. COMEX most active March was bid at 101.45 cents per lb, after the metal peaked in New York at 101.6 cents, the highest since August 1997.//