World Markets

Return to Article

Asian Stocks Trading Mostly Higher

The Associated Press

HONG KONG -- Asian stocks were mostly higher Friday as a string of upbeat U.S. economic reports reinforced hopes of a recovery in the world's largest economy and helped arrest the region's four-day slide.

But gains across Asia were tentative as investors tread cautiously amid expectations that stocks could fall further after their steep rise since March. Oil prices were slightly higher and the dollar fell.

Buoying sentiment were U.S. government data showing the number of people drawing unemployment benefits dropped last week for the first time since early January, snapping a series of 21 straight increases.

Separately, the Philadelphia Reserve Bank said its regional measure of manufacturing activity picked up, and a private research group said its forecast of economic activity rose more than expected in May.

Still, market watchers were reluctant to read too much into the day's upswing, saying trading volumes were light in many markets and a technical bounce wasn't unexpected after a series of losses. Wall Street's moderately higher finish also helped.

With a year-end resumption of growth already baked into stock prices, there may be little impetus to move higher for now, said Lorraine Tan, director of equities research at Standard & Poor's in Singapore.

"We're a little more cautious right now," Tan said. "People are starting to take some money off the table."

Japan's Nikkei 225 stock average added 0.6% to 9756.68, and Hong Kong's Hang Seng climbed 0.6%. South Korea's Kospi inched up 0.2%.

Shanghai's index rose 0.9%, while Australia's benchmark was up 0.7%.

In New York Thursday, Wall Street stocks rose though closed off their highs.

The Dow Jones industrials rose 58.42, or 0.7%, to 8,555.60, its biggest one-day gain in two weeks. The Dow had been up 98 points. The S&P 500 index rose 7.66, or 0.8%, to 918.37.

U.S. futures suggested a slightly higher open Friday.

Oil prices were marginally higher in Asia, with benchmark crude for July delivery up 25 cents at $71.62. The contract rose 34 cents overnight.

The dollar traded at 96.60 yen compared with 96.65 yen, while the euro rose to $1.3942 from $1.3906.