HONG KONG - ASIAN shares rose on Friday following record rate cuts by central banks in Europe, though risk aversion remained, lifting the dollar ahead of what is expected to be dismal US employment data.

Oil prices steadied after slumping US$3 (S$4.56) on Thursday to their lowest level in nearly four years amid bleak economic data that could spell a deeper decline in global energy demand.

Caution was likely to prevail in broader global markets despite the recent sell-offs, with concerns also focusing on the fate of US auto makers, which are seeking billions of dollars in government aid.

'We are staring at great values here but people are not willing to accept it because of all the uncertainty that's around the place,' said Mr Michael Heffernan, strategist at Austock Securities in Australia.

The MSCI index of Asian shares outside Japan rose 0.5 per cent as of 0240 GMT (10.40am, Singapore time), though it was still en route to a weekly loss of nearly 4 per cent.

The Nikkei average was up 0.7 per cent, while key indexes in South Korea, Hong Kong and Singapore were up between 1 and 2 per cent.

Shares in Taiwan fell, while markets in China and Australia were little changed.

The overall gains followed steep rate cuts by central banks worldwide as they respond to a deepening global downturn.

On Thursday the European Central Bank dropped its benchmark rate by 0.75 percentage point, while Sweden lopped 1.75 percentage points and the Bank of England cut rates by 1 percentage point.

Governments are also taking action. South Korea repeated on Friday pledges to do more to keep Asia's fourth-largest economy on tack, and listed automobile, semiconductor and petrochemical firms as those hardest hit by the global downturn.

Employment data
Investors were shifting their focus to US employment data due out later on Friday, with a Reuters poll of economists forecasting a contraction of more than 300,000 in payrolls.

The report could thus become the latest bleak signal about the global economy. Companies from AT&T to banks such as Credit Suisse are cutting jobs as they face the worst economic crisis since the Great Depression.

The ensuing risk aversion is benefitting asset classes seen as relative safe-havens such as the dollar.

The dollar climbed 0.3 per cent to 92.52 yen (S$1.52) after hitting its lowest point in five weeks at 92.05 yen on electronic trading platform EBS in US trading.

The euro dropped 0.2 per cent to US$1.2755, giving up some of the single currency's gains on Thursday, when investors lauded the ECB's bolder-than-expected interest rate cut as a proactive step to stave off a deep recession.

Oil steadied at US$43.60 a barrel after slumping more than 6 per cent to its lowest level since January 2005 on Thursday.

Crude prices have fallen some 16 per cent since last week, and are now more than US$100 below the all-time high of $147.27 hit in July.

Gold also steadied at US$768.90 an ounce after its fall on Thursday.

KUALA LUMPUR
At 12.30pm on Friday, there were 94 gainers, 213 losers and 167 counters traded unchanged on the Bursa Malaysia.

The KLCI was at 841.24 down 5.62 points, the FBM2BRD was at 3,946.72 down 15.15 points, and the FBMEmas was at 5,495.30 down 43.54 points.

Turnover was at 114.112 million shares valued at RM203.163 million (S$86 million).

SHANGHAI
Chinese shares closed up 0.86 per cent on Friday amid hopes that a high-level economic planning meeting next week will produce further measures to boost the slowing economy, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, closed up 17.15 points at 2,018.66 on turnover of 81.0 billion yuan (S$17.9 billion).

The Shanghai A-share index added 17.91 points, or 0.85 per cent, to 2,119.84 on turnover of 80.8 billion yuan, while the Shenzhen A-share index rose 13.94 points, or 2.26 per cent, to 631.79 on turnover of 40.5 billion yuan

HONG KONG
Hong Kong share prices closed 2.5 per cent higher on Friday, following a series of rate cuts by European central banks to battle the global financial meltdown, dealers said.

The benchmark Hang Seng Index rose 336.31 points at 13,846.09. Turnover was light at HK$37.34 billion (S$7.27 billion).

TOKYO
Japanese stocks ended slightly lower on Friday, giving up early gains as investors turned cautious ahead of key US jobs data.

The benchmark Nikkei-225 index dropped 6.73 points, or 0.08 per cent, to 7,917.51. The broader Topix index of all first section issues slipped 2.86 points, or 0.36 per cent, to 786.02. -- AFP, AP, BERNAMA