* MSCI Asia-Pacific index up 0.8 pct, Nikkei advances 1.4
* Hong Kong stocks cede early gains; mainland investors
* Oil rallies as OPEC agrees to first output cut in 8 years
* Commodity currencies gain; Japanese yen falls
By Saikat Chatterjee
HONG KONG, Sept 29 Oil shares pulled regional
stock markets higher on Thursday after OPEC members agreed to
curb output in a surprise deal, though investors were wary of
chasing markets higher as the U.S. presidential election neared.
MSCI's broadest index of Asia-Pacific shares outside Japan
was up 0.9 percent by mid-morning, thanks to a
bounce in energy shares, but other markets such as Hong Kong
were trading near the day's lows after an early jump.
Stocks in Europe were expected to open higher following
"Despite the favourable oil deal, foreign institutional
investors are sticking to their favourite counters before the
U.S. elections results as there is simply too much market
uncertainty," said Andrew Sullivan, managing director, sales
trading at Halting International Securities Group in Hong Kong.
Japan's Nikkei climbed 1.5 percent, after losing 1.3
percent the previous day. In Hong Kong, the benchmark index was
up 0.5 percent with energy-related shares the biggest gainers.
Oil futures retreated in Asian trade as the market grew more
sceptical of the deal, pondering how the group agreed to limit
production and how OPEC would implement such a plan.
"Investors and traders are sceptical - with good reason.
More cynical traders are questioning the complete lack of
detail, including the potentially problematic question of which
nations will curtail production," Michael McCarthy, chief market
strategist at Sydney's CM Markets, told Reuters.
Though OPEC's first agreement to cut production since 2008
drove risky assets initially higher, the lack of detail made
some investors wary.
Brent crude eased slightly after earlier climbing to
a high of $49.09 when the market opened, its highest since Sept.
9. WTI crude edged lower to $46.99 a barrel, after first
hitting $47.47, its highest since Sept. 8.
"I think the markets are still not fully convinced," said
Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.
Still, the jump in oil prices boosted risk assets and
undermined the yen, which is often seen as a safe haven at times
of economic stress.
The dollar rose 0.7 percent to 101.38 yen, extending
its rebound from one-month low of 100.085 touched on Tuesday.
The euro was higher at $1.12305, recovering from
Wednesday's low of $1.1182 helped in part by rebound in shares
of Deutsche Bank.
($1 = 7.7538 Hong Kong dollars)
(Additional reporting by Keith Wallis in SINGAPORE and Hideyuki
Sano in TOKYO; Editing by Eric Meijer and Kim Coghill)