Asia, Europe Markets Post Gains

By Jeremiah Marquez

HONG KONG -- Global stock markets recovered Wednesday as better-than-expected U.S. data gave investors hope of a turnaround in the world's largest economy and helped offset their fears of a swine flu pandemic.

After two days of declines, several major markets in Asian and Europe posted broad-based gains. Airline stocks, slammed in recent days amid worries about the disease's toll on travel, rebounded sharply around Asia. The dollar strengthened against the yen, while oil prices were steady.

Investors were cheered after a closely watched measure of U.S. consumer confidence soared in April, suggesting Americans may be ready to spend again -- a boon for export-driven Asian countries. An easing in the pace of home price declines also boosted sentiment.

Worries about swine flu and its impact on a world economy still reeling from recession have consumed the market this week. Countries everywhere have warned against or slapped outright bans on travel to Mexico, where the vast majority of cases are located, as new infections cropped up in Germany, New Zealand and Israel in recent days.

While the rapid spread of the virus, suspected in more than 150 deaths in Mexico, continues to inspire caution, many investors are waiting to see whether the outbreak develops into a full-blown epidemic.

In Europe, Britain's FTSE 100 edged up 0.5%, while benchmarks in Germany and France rose nearly 1%. Meanwhile, Wall Street futures signaled a higher open on Wednesday.

Earlier in Asia, South Korean shares led the region after the country posted a record current account surplus in March. The Kospi benchmark finished higher by 2.9%.