GLOBAL MARKETS-Stocks rise on hope Asia can withstand slowdown

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By Louise Heavens

SINGAPORE, March 28 (Reuters) - Asian stocks staged a tentative recovery before the end of the quarter, and bonds fell as investors gauged that concerns about the impact of a U.S. recession and a global credit crunch on Asia were overdone.

But European markets were poised to open lower, weighed down by worries the credit crisis may yet claim more victims on Wall Street following market rumours that Lehman Brothers (LEH.N: Quote, Profile, Research) could be the next bank to fall, rumours Lehman said were "totally unfounded". [ID:nN27289860]

Financial bookmakers in London forecast Britain's FTSE 100 .FTSE index will open 0.2 percent lower, and Germany's DAX .GDAXI and France's CAC 40 .FCHI will open 0.5 percent lower.

Caution over the U.S. economic outlook took its toll on oil prices, which fell $1 a barrel. The U.S. currency was also on the back foot.

MSCI's index of Asian shares outside Japan .MIAPJ0000PUS rose 0.5 percent by 0603 GMT. The benchmark down almost 14 percent this year and is heading for its biggest quarterly fall in 5-½ years on nagging worries about the health of the global financial system, rising inflation, and a murky outlook for corporate profits.

But as the quarter drew to a close, optimism mounted that profits could shrug off the worst of the U.S. economic and credit problems

Tokyo's Nikkei .N225 recovered from an earlier fall to close 1.7 percent higher. Seoul's KOSPI managed to shrug off news of the test firing of missiles in North Korea to post a 1.5 percent gain, helped by technology stocks, such as Samsung Electronics (005930.KS: Quote, Profile, Research).