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Asian Stocks Gain; Hang Seng Tacks on 2.1%

The Associated Press

Gains across the region were broad-based as recent pessimism about economic recovery gave way to relief that the U.S. corporate earnings season hasn't produced any big disappointments so far.

Investors have been focusing on earnings for clues about the state of the world's largest economy, currently mired in its deepest recession in decades. The big rally in world markets between March and June stalled in the past few weeks as data suggested any economic recovery would be a long, hard slog.

Japan's benchmark Nikkei 225 stock average rose 0.1% to 9,269.25 after gaining 2.3% the day before to snap a nine-session losing streak.

Hong Kong's Hang Seng jumped 2.1%, and South Korea's Kospi, the region's best performer, ended higher by 2.6%.

European stocks rose in early trading. The FTSE 100 index of leading British shares gained 1.3%, while Germany's DAX rose 1.5% and France's CAC-40 gained 1.3%.

Premarket futures in the U.S. suggest stocks will open higher on Wall Street Wednesday.

In the U.S., Goldman Sachs (GS Quote) reported second-quarter earnings Tuesday of $2.72 billion, up on last year's $2.05 billion, and easily surpassing forecasts thanks to big gains in trading and underwriting. Other big U.S. banks, such as Citigroup (C Quote) and Bank of America (BAC Quote), will be reporting earnings later this week.

The Dow Jones Industrial Average rose 27.81, or 0.3%, to 8,359.49. The broader S&P 500 index rose 4.79, or 0.5%, to 905.84, while the Nasdaq composite index rose 6.52, or 0.4%, to 1,799.73.

Francis Lun, general manager at Fulbright Securities in Hong Kong, said that Asian markets were following through on the gains in Europe and the U.S., though lacked the vigor of Tuesday's rises.

"Bank results were better than expected" and were helping to buoy markets, he said of the Goldman results, though added that Asia's performance "is not as strong as yesterday."

Kim Joong-hyun, a strategist at Goodmorning Shinhan Securities in Seoul, said that earnings results announced by U.S. chipmaker Intel (INTC Quote) after the close of Wall Street trading were also providing support for markets.

The chipmaker posted sales and profit that breezed past Wall Street's forecasts -- though investors had to overlook a $1.45 billion antitrust fine from the European Union. The fine, which Intel had to pay while it is appealing the case, gave the world's biggest semiconductor company its first quarterly net loss since 1986.

Other big nonfinancial companies such as Google (GOOG Quote) and General Electric (GE Quote) are due to report earnings this week.

Oil prices rose above $60 a barrel in Asia as investors looked to a weekly inventory report for clues on U.S. gasoline demand. Benchmark crude for August delivery was up 69 cents to $60.21 a barrel in electronic trading on the New York Mercantile Exchange. On Tuesday, the contract fell 17 cents to settle at $59.52.