Asian Stocks End Higher; Nikkei Gains 1%

By Jeremiah Marquez

HONG KONG -- Asian stocks advanced Friday, with resource companies gaining as oil prices broke above $69 and mining giants Rio Tinto (RTP Quote)and BHP Billiton (BHP Quote) announced a partnership. Japan's Nikkei index rose to an eight-month high.

But investors tread cautiously ahead of a key U.S. jobs report that could bring more signs of recovery -- or weakness -- in the world's largest economy and its consumers, whose spending is critical for Asian exporters.

Investors were comforted by news Thursday that the number of American workers continuing to receive unemployment benefits unexpectedly fell for the first time in 20 weeks.

That augured well for the government's monthly tally of job losses, a critical report on non-farm payrolls due later Friday that could provide more clues to the health of the U.S. economy.

Still, optimism about any nascent recovery is pervasive in the market, and some analysts say stocks could push higher even if the figures disappoint -- building on a powerful rally that has lifted many markets in Asia 30% or more in just the last three months.

"We're still cautious, but more and more people are turning positive about the economy," said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. "I think that confidence will be hard to shake in the short term."

In Japan, the Nikkei 225 stock average rose 1%, to 9,768.01. Higher oil prices lifted stocks like Nippon Oil and Idemitsu Kosan.

Shares of automakers and electronics companies also posted strong gains as the yen weakened against the dollar. Mazda Motor surged 10.4%.