Japan shares flirt with 15-year high, BOJ awaited

By Wayne Cole

SYDNEY (Reuters) - Japanese shares probed 15-year peaks on Wednesday as Asian stocks benefited from speculation of more stimulus from China and Japan, as well as a delayed start to any tightening by the U.S. Federal Reserve.

The chase for yield in emerging markets helped offset a flat finish for Wall Street, where a higher dollar was viewed as a threat to multinational corporations' profits.

Oil prices also suffered a setback when Saudi Arabia reported record production, while U.S. data showed a jump in crude stockpiles. [O/R]

The Nikkei added 0.4 percent and came within a whisker of the recent triple top around 19,778 before backing away. A break there would take it to ground last trod in April 2000 and would be very bullish technically.

Milestones littered the region with Chinese shares just off seven-year peaks and MSCI's broadest index of Asia-Pacific shares outside Japan up 0.8 percent at its highest since mid-September.

South Korea's main index made a seven-month top, while the Philippines market has been on a tear over the last couple of weeks to reach record highs.

The Bank of Japan marks an anniversary of its own as it meets two years to the month since it launched a massive debt-buying campaign that has built its balance sheet by a cool 156 trillion yen ($1.3 trillion).

While most expect nothing new this week there is mounting speculation the central bank could ease yet further at its April 30 meeting should inflation and consumer spending continue to disappoint.

The prospect of more years of super-easy policy in Japan proved a drag on the yen, with the dollar rising to 120.30 and well away from the post-payrolls low of 118.69.

The dollar also recovered all the ground it lost against the euro from Friday's jobs report, to stand at $1.0820. Against a basket currencies, the dollar was up at 97.898.

The speedy turnaround for the dollar did not go down so well on Wall Street. Citing the currency's strength, Bank of America-Merrill Lynch cut its 2015 earnings estimates for the S&P 500 by $2 a share.

The Dow fell 0.03 percent, while the S&P 500 lost 0.21 percent and the Nasdaq 0.14 percent.

European markets fared better as the euro lost ground and the FTSEurofirst index of leading 300 shares ended Tuesday 1.6 percent higher.

In commodities, oil pared recent gains after Saudi Arabia reported record production of 10.3 million barrels per day in March, a figure the country's oil minister said was unlikely to fall by much. [API/S]

U.S. May crude fell back 97 cents to $53.01 a barrel while Brent lost 63 cents to $58.47.

Gold took a knock from the rising dollar and edged back to $1,208.40 an ounce, having touched a seven-week high of $1,224.10 early in the week.

(Editing by Eric Meijer)