Aug 7 (Reuters) - Canada's Manulife Financial ( MFC )

reported a rise in second-quarter profit on Wednesday, thanks to

strong growth in its Asia business.

The country's largest insurer has increasingly bet on

its Asia business to boost growth as it looks to diversify away

from home.

Annual premium-equivalent sales rose 17% in the quarter,

powered by a 61% jump in Manulife's Canada business and a 7%

increase in its Asia unit. APE is a key sales metric used by

life insurance companies.

Core earnings rose to C$1.74 billion ($1.26 billion), or

91 Canadian cents per share, in the three months ended June 30,

from C$1.64 billion, or 83 Canadian cents per share, a year

earlier.

Manulife shares have jumped 13.4% so far this year,

compared with a 5.8% fall for smaller peer Sun Life,

which is slated to report results next week.

($1 = 1.3758 Canadian dollars)