RPT-GLOBAL MARKETS-Asian shares rise, dlr stays lows on euro

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By Jacqueline Wong

SINGAPORE, April 17 (Reuters) - Japan's Nikkei share average rose 2 percent on Thursday, buoyed by confidence on Wall Street after reassuring earnings eclipsed weak data on the U.S. economy which pinned the dollar near record lows on the euro.

Encouraging results from Intel Corp (INTC.O), IBM (IBM.N) and JPMorgan Chase & Co (JPM.N) helped overshadow mostly gloomy economic news on the world's largest economy.

A sharp fall in U.S. housing starts and data that showed home building sank to a 17-year low on Wednesday reinforced expectations the Federal Reserve would cut interest rates again.

Oil CLc1 hovered around $115 a barrel, off a record high, while gold XAU= steadied after climbing more than 2 percent the day before, supported by a weak dollar.

Japanese stocks climbed led by high-tech shares such as TDK Corp (6762.T) and Canon Inc (7751.T) after earnings from U.S. blue chips soothed investors concerned about corporate profitability amid a weak U.S. economy.

"Earnings at U.S. companies have generally been better than expected, though worries about Citigroup's earnings remain," said Yoku Ihara, manager of the investment information department at Retela Crea Securities.

By the midday break, the benchmark Nikkei average .N225 was up 2.3 percent at 13,452.23 after ending up 1.2 percent on Wednesday.

The MSCI's measure of Asia Pacific stocks outside Japan .MIAPJ0000PUS rose 1.2 percent by 0200 GMT, building on Wednesday's more than 1 percent gain, though the index is still down around 10 percent so far this year.

Markets in Seoul , Singapore .FTSTI, Sydney .AXJO and Hong Kong .HSI all posted gains of more than 1 percent.

Financial stocks rose after solid results from JPMorgan and Wells Fargo & Co (WFC.N) heartened investors who had been counting on the big banks to fare better than rivals in coping with the U.S. mortgage meltdown and global credit crunch. [ID:nN16378871]

DOLLAR DOWNBEAT

The dollar held near an all-time low against the euro on expectations of further rate cuts as the U.S. economy slows, while record high inflation in the euro zone backed views the European Central Bank will not cut rates soon. [ID:nL16869535]

"The dollar continues to be weak, while investors chase currencies whose yields are not seen falling," said Tsutomu Soma, senior manager of foreign assets at Okasan Securities.

The Federal Reserve said on Wednesday economic conditions were weakening across much of the United States while price pressures from food, fuel and raw materials were increasing.