SINGAPORE, Feb 13 - Asian shares crept to fresh four-year highs on Friday and the dollar remained under pressure near multi-year lows as investors grew comfortable with improving corporate earnings and prospects for steady U.S. interest rates. The Australian dollar hit another seven-year peak against its U.S. counterpart in the wake of Federal Reserve Chairman Alan Greenspan's indication that he was comfortable with the dollar's decline and in no hurry to raise rates. Tokyo's Nikkei stock average ended morning trade up 0.3 percent at 10,491.48, with Internet service provider Softbank Corp <9984.T> jumping 6.1 percent after posting narrower losses. NTT DoCoMo <9437.T>, Japan's biggest mobile phone operator, rose 2.3 percent on reports it had decided against bidding for AT&T Wireless Services Inc of the United States. "DoCoMo has never made good overseas investments and investors must think this time would have been the same," said Masayoshi Okamoto, head of dealing at Jujiya Securities. MSCI's broadest index of shares elsewhere in the region <.MSCIAPJ> gained as much as 0.2 percent to its highest dollar value since early 2000.
"Things are looking quite solid across the board and recoveries are strong everywhere. So there's no reason not to perform," said Lucinda Chan, associate director at Macquarie Bank in Australia. Gold edged up to $412.25 an ounce, around a two-week high, while U.S. crude oil gained 0.2 percent to $34.05 a barrel. Japanese government bonds fell <0#JPTSY=JBTC> as investors locked in gains for the previous day's rally.
CAUTION ON YEN, EURO
The dollar hit a seven-year low around 79.1 cents per Australian dollar , but was steady against the yen and euro. Traders said few people were eager to test Japan's determination to hold the dollar above 105 yen through intervention and were wary of pushing the euro higher. "There is some caution about pushing the euro to record highs after G7 (Group of Seven) countries warned against excess volatility although I don't think European officials will intervene," said Mitsuru Sahara, vice president of the currency dealing group at UFJ Bank. The dollar was worth 105.44 yen , just above a three-year low struck on Wednesday, and $1.2794 per euro , around a cent away from a record low. The latest fall in the dollar was triggered by Greenspan's testimony to Congress on Wednesday, when he said a weak dollar would help close the U.S. current account gap. He also said policy makers could be patient on interest rates, helping to lift stocks and bonds. Stock benchmarks rose one percent in Taiwan <.TWII>, and 0.2-0.4 percent in South Korea <.KS11>, Australia <.AXJO> and Singapore <.STI>. Hong Kong stocks <.HSI> fell 0.7 percent on worries over share sales by companies and investors raising funds. But there were gains of around five percent for two Chinese companies added to Morgan Stanley Capital International Inc's (MSCI) Standard Index Series -- mining firm Fujian Zijin Mining Industry <2899.HK> and mini-car and helicopter maker Avichina Industry & Technology <2357.HK>. U.S. shares fell on Wednesday, wiping 0.4 percent off the Dow Jones Industrial Average <.DJI> and 0.8 percent off the Nasdaq Composite <.IXIC>. European shares closed little changed.//