Asia stocks lifted by weak yen, firmer oil

SINGAPORE, Jan 24 (Reuters) Asia stocks rose on Wednesday, with Japan's Nikkei posting a nine-month closing high as shares in exporters such as Toyota gained on expectations a weaker yen will prompt them to lift their earnings forecasts.

The yen fell to a record low against the euro, as comments from Bank of Japan governor Toshihiko Fukui did little to dispel doubts about whether it will raise interest rates next month. The BOJ held its key rate steady at 0.25 percent last week.

''I think the chances of an interest rate rise in February are about 30 percent,'' said Yasuo Yabe, a director of sales at Meiwa Securities.

Financial bookmakers in London forecast the FTSE 100 index would open 0.2-0.3 percent higher.

A more than 4 percent surge in oil and rising gold and base metals prices boosted commodities-related stocks, propelling Australia's resource-heavy main index to a record close.

Benchmarks in Hong Kong, Singapore and China were also on course for record closes.

The main indexes in South Korea and Taiwan closed 1-1.5 percent higher as technology stocks -- battered last week by weaker-than-expected earnings outlooks from global bellwethers such as Intel Corp. -- rebounded strongly.

''Worries about the outlook for the first quarter and beyond have hit tech shares recently,'' said Lee Woo-hyun, an analyst at Kyobo Securities in South Korea. ''But there's a feeling in the market that the shares have already reflected those lowered expectations, and there's no need to overreact.'' Interest rate differentials have dominated currency markets in recent sessions and hobbled the low-yielding yen, which also dipped near four-year lows against the dollar and hovered close to a 14-year low against sterling.

Japanese central bank governor Fukui told Reuters in an interview on Tuesday that higher rates could ultimately benefit the Japanese economy, but the BOJ would rather err on the side of caution as long as data was mixed.

''His comments did not give the impression that views are tilted in any staggering way toward raising interest rates in February,'' said Masafumi Yamamoto, a currency strategist for Nikko Citigroup in Tokyo.

NIKKEI EYES 6-{YEAR PEAK The euro rose to a record high of 158.62 yen this session, before pulling back to 158.25 yen as of 0610 GMT.

The dollar rose as high as 121.79 yen, within a whisker of a 4-year high of 121.80 yen hit earlier this week, before easing back to around 121.46 yen The benchmark 10-year Japanese government bond yield edged up 0.5 basis point to 1.655 percent.

Tokyo's Nikkei gained 0.6 percent to its best finish since April 2006, after earlier rising within touching distance of a 6-1/2-year peak.

Electronics components maker Kyocera rose 1.1 percent, while car maker Toyota Motor Corp. gained 1.9 percent.

The weaker yen is seen helping exporters because it increases their competitiveness in the key U.S. market and boosts the value of their dollar sales.

MSCI's broadest index of shares elsewhere in Asia rose 0.5 percent by 0610 GMT, when its tech sub-index was up 1.5 percent.

Oil eased below a barrel, after racing nearly SINGAPORE, Jan 24 (Reuters) Asia stocks rose on Wednesday, with Japan's Nikkei posting a nine-month closing high as shares in exporters such as Toyota gained on expectations a weaker yen will prompt them to lift their earnings forecasts.

The yen fell to a record low against the euro, as comments from Bank of Japan governor Toshihiko Fukui did little to dispel doubts about whether it will raise interest rates next month. The BOJ held its key rate steady at 0.25 percent last week.

''I think the chances of an interest rate rise in February are about 30 percent,'' said Yasuo Yabe, a director of sales at Meiwa Securities.

Financial bookmakers in London forecast the FTSE 100 index would open 0.2-0.3 percent higher.

A more than 4 percent surge in oil and rising gold and base metals prices boosted commodities-related stocks, propelling Australia's resource-heavy main index to a record close.

Benchmarks in Hong Kong, Singapore and China were also on course for record closes.

The main indexes in South Korea and Taiwan closed 1-1.5 percent higher as technology stocks -- battered last week by weaker-than-expected earnings outlooks from global bellwethers such as Intel Corp. -- rebounded strongly.

''Worries about the outlook for the first quarter and beyond have hit tech shares recently,'' said Lee Woo-hyun, an analyst at Kyobo Securities in South Korea. ''But there's a feeling in the market that the shares have already reflected those lowered expectations, and there's no need to overreact.'' Interest rate differentials have dominated currency markets in recent sessions and hobbled the low-yielding yen, which also dipped near four-year lows against the dollar and hovered close to a 14-year low against sterling.

Japanese central bank governor Fukui told Reuters in an interview on Tuesday that higher rates could ultimately benefit the Japanese economy, but the BOJ would rather err on the side of caution as long as data was mixed.

''His comments did not give the impression that views are tilted in any staggering way toward raising interest rates in February,'' said Masafumi Yamamoto, a currency strategist for Nikko Citigroup in Tokyo.

NIKKEI EYES 6-{YEAR PEAK The euro rose to a record high of 158.62 yen this session, before pulling back to 158.25 yen as of 0610 GMT.

The dollar rose as high as 121.79 yen, within a whisker of a 4-year high of 121.80 yen hit earlier this week, before easing back to around 121.46 yen The benchmark 10-year Japanese government bond yield edged up 0.5 basis point to 1.655 percent.

Tokyo's Nikkei gained 0.6 percent to its best finish since April 2006, after earlier rising within touching distance of a 6-1/2-year peak.

Electronics components maker Kyocera rose 1.1 percent, while car maker Toyota Motor Corp. gained 1.9 percent.

The weaker yen is seen helping exporters because it increases their competitiveness in the key U.S. market and boosts the value of their dollar sales.

MSCI's broadest index of shares elsewhere in Asia rose 0.5 percent by 0610 GMT, when its tech sub-index was up 1.5 percent.

Oil eased below $55 a barrel, after racing nearly $2.50 higher on Tuesday as the United States announced plans to build up its Strategic Petroleum Reserve (SPR) and as colder weather pushed up demand in the world's top consumer.

''The SPR news is very supportive of the price,'' said Andrew Harrington, a resource analyst at ANZ Bank. ''And if you want to consider the Chinese strategic reserves, they have also been filling their reservoirs, all of that is very, very supportive.'' NYMEX crude for March delivery fell 27 cents to $54.77 a barrel.

Hong Kong-listed shares in top Chinese oil and gas producer PetroChina rose 2.2 percent, while Australia's Woodside Petroleum gained 1.7 percent and Japanese oil developer INPEX Holdings was up 2.4 percent.

Gold traded around $643.60 an ounce, down from a seven-week high struck on Tuesday when prices gained 2 percent due to fund buying spurred by a weaker dollar.

Shanghai copper futures surged more than 3 percent on supply worries. Concerns over supply had also pushed nickel and tin to record highs on Tuesday.

Mining giant BHP Billiton rose 2.5 percent and rival Rio Tinto gained 3.3 percent.

REUTERS PV KP1220 .50 higher on Tuesday as the United States announced plans to build up its Strategic Petroleum Reserve (SPR) and as colder weather pushed up demand in the world's top consumer.

''The SPR news is very supportive of the price,'' said Andrew Harrington, a resource analyst at ANZ Bank. ''And if you want to consider the Chinese strategic reserves, they have also been filling their reservoirs, all of that is very, very supportive.'' NYMEX crude for March delivery fell 27 cents to .77 a barrel.

Hong Kong-listed shares in top Chinese oil and gas producer PetroChina rose 2.2 percent, while Australia's Woodside Petroleum gained 1.7 percent and Japanese oil developer INPEX Holdings was up 2.4 percent.

Gold traded around 3.60 an ounce, down from a seven-week high struck on Tuesday when prices gained 2 percent due to fund buying spurred by a weaker dollar.

Shanghai copper futures surged more than 3 percent on supply worries. Concerns over supply had also pushed nickel and tin to record highs on Tuesday.

Mining giant BHP Billiton rose 2.5 percent and rival Rio Tinto gained 3.3 percent.

REUTERS PV KP1220