* MSCI Asia-Pacific index up 0.4 pct, Nikkei rises 0.3 pct
* Spreadbetters see European shares opening higher
* Rise in U.S. and Japanese bond yields halts for now
* Reaction limited to relatively upbeat China data
* Crude slips after rise, copper climbs off 12-week low
By Shinichi Saoshiro
TOKYO, Sept 13 Asian stocks rose on Tuesday
after Federal Reserve Governor Lael Brainard calmed global
markets with remarks that appeared to reduce the prospects of a
near-term interest rate hike.
The dollar, on the other hand, nursed losses against its
peers after Brainard reiterated her dovish views and warned
against a rush to raise rates.
Spreadbetters expected the upswing for equities to continue
in Europe, forecasting a higher open for Britain's FTSE,
Germany's DAX and France's CAC.
MSCI's broadest index of Asia-Pacific shares outside Japan
gained 0.4 percent, after tumbling 2.4 percent
Japan's Nikkei was up 0.3 percent.
South Korea's Kospi rose 0.5 percent and Australian
stocks advanced 0.1 percent. Hong Kong's Hang Seng
added 0.8 percent and Shanghai bucked the trend
to lose 0.2 percent.
Investors were unfazed by a run of relatively upbeat Chinese
data that included industrial output, which rose a
better-than-expected 6.3 percent in August, further dimming
expectations of a rate cut any time soon.
While some investors had speculated that Brainard would
switch over to the more hawkish camp, the Fed governor said
Monday she wanted to see a stronger trend in U.S. consumer
spending and evidence of rising inflation before the Fed raises
The comments solidified the view the U.S. central bank would
leave interest rates unchanged next week.
"We can stick with our main scenario that the Fed won't
raise rates in September. All the talk about a possible rate
hike in September turned out to be noise," said Koichi
Yoshikawa, executive director of finance at Standard Chartered
Bank's Tokyo branch.
Future traders are now pricing in just a 15 percent chance
of a hike at the Fed's Sept. 20-21 policy-setting meeting, down
from 21 percent earlier on Monday, according to the CME Group's
U.S. stocks racked up their strongest gain in two months on
Monday, with the Dow rising 1.3 percent and the S&P 500
gaining 1.5 percent.
The dollar dipped 0.1 percent to 101.940 yen after
shedding 0.8 percent overnight. The euro was flat at $1.1234
while the dollar index stood little changed at
95.155 after losing about 0.2 percent the previous day.
In the global bond market, the recent sharp rise in yields
was halted for now after Brainard's comments. Yields had been
rising as bond prices fell in the face of perceived limits to
monetary policies of major central banks such as the European
Central Bank and the Bank of Japan.
The benchmark 10-year U.S. Treasury note yield
stood at 1.649 percent after touching a 2-1/2 month high of
1.697 percent earlier on Monday.
Its 10-year Japanese counterpart yielded minus 0.020 percent
, nudged away from a six-month peak of minus 0.010
percent reached recently.
Crude oil prices dipped as investors sold into the previous
day's gains and on concerns over increased drilling in the
Brent crude was down 0.7 percent at $47.98 a barrel
after rising 0.65 percent overnight on a weaker dollar and
stronger U.S. equity markets.
Copper climbed off a 12-week low as U.S. rate hike jitters
subsided. Three-month copper on the London Metal Exchange
edged up 0.1 percent to $4,650.50 a tonne after plumbing
$4,582 a tonne on Monday, the weakest since June 20.
Meanwhile, the markets pondered political developments in
the United States and their potential financial implications.
"Hillary Clinton's September 11th medical episode and
revelations of a recent pneumonia diagnosis may have pushed
markets to begin taking a closer look at presidential candidate
Donald Trump, whom markets appear to see as less predictable,"
said Andrew Meredith, co-managing director at Tyton Capital
Advisors in Tokyo.
Presidential candidate Clinton almost collapsed at an event
on Sunday, suffering from pneumonia, although she said on Monday
she could resume campaigning in a couple of days.
(Reporting by Shinichi Saoshiro; Additional reporting by
Hideyuki Sano and Ayai Tomisawa in Tokyo; Editing by Eric Meijer
and Kim Coghill)