* Euro off two-week lows vs dollar, capped as rate cut eyed
* MSCI Asia ex-Japan likely track U.S. stocks higher
By Chikako Mogi
TOKYO, April 24 Asian shares are set to track
global equities higher on Wednesday, but the euro remained under
pressure despite a modest recovery after soft German data
underscored the still-fragile state of the euro zone economy.
After the bell on Wall Street, Apple shares rose
3.8 percent after the company reported better-than-expected
second-quarter revenue of $43.6 billion, reflecting strong sales
of the iPad and iPhone.
According to Westpack bank, 72.8 percent of the 147 Standard
& Poor's 500 companies reporting so far beat consensus on
"Equities were underpinned by positive reports on corporate
earnings and U.S. housing, some indications of progress in the
Italian political arena, and perceptions that economic weakness
in Europe may promote a further easing of monetary policy by the
European Central Bank," Barclays Capital said in a research.
The euro was around $1.3000, managing to recover from
Tuesday's two-week low of $1.2973 hit after a survey showed
Germany, the euro zone's largest economy, saw business activity
decline in April for the first time in five months. Traders saw
it as strengthening the case for the European Central Bank to
cut interest rates.
The upside for the single currency was limited given the
potential for an ECB rate cut and lingering concerns about the
growth outlook in the recession-hit euro-zone.
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan fell 0.3 percent on Tuesday after
the preliminary or "flash" China HSBC Purchasing Managers' Index
for April fell to 50.5 from 51.6 in March, as a contraction in
new export orders pointed to fragile global demand.
The pan-Asian index was likely to be supported on Wednesday,
with Australian shares seen opening higher.
Japan's Nikkei stock average is also expected to
open higher in response to the firmness in U.S. equities, as
well as a pause in the yen's firmness.
The dollar was down 0.1 percent at 99.41 yen,
struggling to break above the key 100-yen mark due to weak U.S.
economic reports, but traders say the upcoming Bank of Japan
meeting on Friday may provide an opportunity to clear that
U.S. stocks rallied on Tuesday, recovering from sharp
declines sparked by a "bogus" Associated Press tweet about
explosions at the White House, shrugging off data showing
U.S. manufacturing grew at its most sluggish pace in six months.
European shares posted their biggest one-day gain
in seven months.
Earlier in the Asian session on Wednesday, New Zealand's
central bank held its benchmark interest rate at a record low
2.5 percent for the 17th straight review, reaffirming it expects
to be on hold for the rest of the year as the economy picks up
and inflation remains tame.
U.S. crude futures were up 0.3 percent at $89.44 a
barrel early on Wednesday.