RPT-GLOBAL MARKETS-Oil floats near record, dollar's gains capped

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By Louise Heavens

SINGAPORE, May 7 (Reuters) - Oil prices traded within sight of a record high on Wednesday, capping any gains for the dollar, while resource stocks in Asia rose on sky-high energy and metals prices.

U.S. crude CLc1 was steady at $121.79 a barrel, just off a record high at $122.73 in New York. Prices have doubled in the past year and Goldman Sachs -- which had predicted oil would hit $100 a barrel -- forecasts a potential spike to $200.

The surge in energy prices, agricultural commodities and base metals -- a headache for central banks eager to ward off inflation -- boosted shares in Japanese trading houses, such as Marubeni (8002.T: Quote, Profile, Research, Stock Buzz), and Australian miners, such as Rio Tinto (RIO.AX: Quote, Profile, Research, Stock Buzz) and BHP Billiton (BHP.AX: Quote, Profile, Research, Stock Buzz).

Asian equity markets were also supported by Wall Street's advance on Tuesday after officials of the largest U.S. mortgage financing company Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) said they were cautiously optimistic that the worst of the credit crisis had passed even after posting a $2.5 billion quarterly loss. [ID:nN06456763]

Japan's Nikkei average .N225 rose 0.9 percent by the midsession as the country's financial markets reopened after being closed on Monday and Tuesday for national holidays.

MSCI's measure of Asian stocks outside Japan .MIAPJ0000PUS was up 0.2 percent by 0211 GMT, having earlier hit its best level since mid-January. The benchmark is down just under 6 percent so far this year.

But some investors were unconvinced that the worst of the credit crisis was over.