Asia stocks rise in thin trade, yen weak

Singapore, May 3 (Reuters) Asian stocks edged higher today after takeover activity, strong profits and the bellwether Dow Jones industrials' rise to a fresh record reinforced the view that the global equity rally can go further.

But the market's taste for riskier stocks left the yen languishing near recent lows.

''Global economic growth is strong, if not actually accelerating again, so it's no surprise that the appetite for risk is still healthy,'' said John Kyriakopoulos, a currency strategist at nabCapital.

Trade was thin with Japanese and Chinese financial markets closed for public holidays today and tomorrow. Investors were turning their attention to data on the giant the US service sector to provide fresh clues on Friday's payrolls report.

By 0209 GMT the MSCI's measure of Asia Pacific stocks excluding Japan <.msciapj> climbed 0.6 per cent, extending yesterday's 0.75 per cent rise.

The benchmark Korea Composite Stock Price Index (KOSPI) <.ks11> rose 0.4 per cent, adding to a 6-per cent rise last month, during which it set a string of records.

Taiwan's TAIEX share index <.twii> added 0.6 per cent, boosted by a gain in UMC after the chip heavyweight forecast a rise in second-quarter sales and shipments.

Australia's S&P/ASX 200 index <.axjo> recovered from an earlier wobble to post a 0.1 per cent increase as gains in miners, such as Rio Tinto and BHP Billiton offset weakness in the bank sector.

Stocks in Asia were boosted by a strong performance on Wall Street, where the Dow Jones industrial average <.dji> gained 0.6 per cent to hit a record high and the broader S&P 500 <.spx> rose 0.7 per cent to its highest level in more than six years.

OIL BELOW $67 Crude oil futures traded below $67 a barrel after the US government report showed a build in crude inventories last week in the world's top consumer due to weak demand from refiners and an uptick in imports.

London Brent , seen for now as more representative of global prices than the US oil, was steady at $66.25 a barrel after a steep fall overnight in New York.

The US dollar firmed, helped in part by a report the Federal Reserve was still more concerned about inflation than the risks to economic growth.

The Wall Street Journal report said Fed officials would leave rates steady at 5.25 per cent at next week's policy meeting and reiterate that inflation was their predominant concern.

The report helped keep the dollar firm at 120.18 yen , from 120.08 late in New York yesterday and near this week's two-month high around 120.30 yen.

The euro was steady at $1.3592 .

Gold dipped as a firm U.S. dollar and declines in crude oil reduced the metal's safe-haven appeal. Spot gold eased to around $672.40 an ounce from around $673.20 late in New York yesterday.

REUTERS PM GC1240