* MSCI Asia-Pacific index up 0.25%, Nikkei gains 0.7%
* Equities up amid hopes for German stimulus, China rate
steps
* Safe-havens such as U.S. Treasuries, yen fall back
* Oil gains along with equities, OPEC still bearish in
outlook
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Shinichi Saoshiro
TOKYO, Aug 19 (Reuters) - Asian stocks rose on Monday as
hopes of more stimulus from central banks around the world and
steps being taken by major economies such as Germany and China
soothed investors' fears of a sharp global economic slump.
Over recent weeks, recession anxiety - triggered by an
inversion in the U.S. bond yield curve - has led to a shakeout
in financial markets. That has driven speculation of more
support from policy makers, including from the U.S. Federal
Reserve which last month cut rates for the first time since the
financial crisis.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.25%.
Australian stocks .AXJO added 0.7%, South Korea's KOSPI
.KS11 advanced 0.5% and Japan's Nikkei .N225 rose 0.7%.
Wall Street shares had rebounded on Friday after a report
that Germany's coalition government was prepared to set aside
its balanced budget rule in order to take on new debt and launch
stimulus steps to counter a possible recession. Moreover, in a move viewed as a guided rate cut China's
central bank on Saturday unveiled key interest rate reform on
to help steer borrowing costs lower for companies and support a
slowing economy caught in the grip of a bruising trade war with
the United States. The yen JPY= , a gauge of risk sentiment due to its
perceived status as a safe haven, weakened for its third
successive session.
The Japanese currency last traded at 106.440 per dollar,
having pulled back from a seven-month peak near 105.000 reached
a week ago when events including unrest in Hong Kong and a
meltdown in Argentina's markets triggered a fresh bout of
anxiety in markets already shaken by the U.S.-China trade war.
"Sentiment in the markets appeared headed for a one-way
rout, but policy hopes following reports of the German stimulus
have helped halt the steady deterioration," said Ayako Sera,
senior market strategist at Sumitomo Mitsui Trust.
"As for steps by China, it needs to be understood that the
latest measures are geared towards markets which are already
regulated extensively. But China's latest move should
nevertheless provide the market with relief."
Elsewhere in currencies, the dollar index .DXY against a
basket of six major currencies, hovered near a two-week high of
98.339 climbed on Friday. The index was supported as U.S.
Treasury yields bounced back from recent lows in the wake of
German stimulus hopes.
The 10-year U.S. Treasury yield US10YT=RR stood at 1.575%,
having pulled away from a three-year trough of 1.475% marked
last week.
The euro EUR= was steady at $1.1089 while the Australian
dollar AUD=D4 nudged up 0.15% to $0.6786.
Brent crude oil futures LCoc1 gained 0.68% to $59.04 per
barrel, following in the tracks of improved equity markets, with
an ebb in recession concerns curbing fears of weak global demand
for commodities.
The longer-term outlook for the crude market remained
sombre, however, with OPEC on Friday providing a bearish outlook
for oil for the rest of 2019. (Editing by Shri Navaratnam)