Asian shares rise on Wall Street gains, euro edges

SINGAPORE (Reuters) - Asian stocks rose on Wednesday, taking a cue from Wall Street gains and on hopes for more robust U.S. earnings, while the euro edged back toward a one-month high hit the previous day.

The euro was cheered by upbeat German data and central bank buying, though doubts about Europe's ability to beef up a sovereign rescue fund kept a lid on gains.

U.S. stocks shook off concerns surrounding Apple Inc , which was hit by news of Chief Executive Steve Jobs' medical leave, helped by strong earnings for the iPhone and iPad maker whose share rose more than 4 percent in extended trade.

Optimism about earnings has helped bolster U.S. stocks in recent weeks, fuelling hopes that the world's No.1 economy could return to a sustainable recovery path and that Japanese firms would follow suit and show a recovery in earnings.

Google , whose increased price targets lifted its shares, reports later this week, and results of the heavy equipment maker Caterpillar are due next week. <.N>

Earnings for the financial sector are also on the way: Goldman Sachs Group Inc later in the day, Morgan Stanley on Thursday and Bank of America Corp on Friday.

"After Google reports tomorrow investors will shift their focus back to Tokyo companies," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.

"As most of them are expected to post strong earnings, the market will look for news about how they're going to sustain that performance in the long run."

EURO ZONE DEBT

Japan's Nikkei average <.N225> rose 0.2 percent to 10535.70, while the MSCI index of Asia and Pacific shares excluding Japan <.MIAPJ0000PUS> was up 0.51 percent. <.T>

Concerns over the euro zone's debt problems are still around, but sentiment improved in the wake of news that foreign buyers took up about 80 percent of Greek Treasury bills at Tuesday's auction.

"Foreign demand is soaking up this pressure and I think that is a very important development. But it's only enough to hold euro in a range," said Robert Rennie, chief currency strategist at Westpac Bank.

"Euro is in a very well rehearsed $1.29-$1.3450/3500 range. I'd be surprised if we break out on the top side. What you're seeing is positioning washing back and forth."

After hitting as high as $1.3467 overnight, the euro last traded at around $1.3424. Resistance at the top-end of a prevailing range is expected to keep the single currency capped for now.

U.S. crude futures extended declines on Wednesday, pressured by the restart of the Trans Alaska Pipeline and as the International Energy Agency said OPEC may have quietly raised production in response to prices nearing $100.

Spot gold rose by 0.4 percent to $1,373.3 an ounce by 0205 GMT, supported by steady physical demand in Asia and strength in the euro currency.

(Additional reporting by Antoni Slodkowski in Tokyo, Ian Chua in Sydney; Editing by Alex Richardson)