Japan, Hong Kong Shares Gain; Europe Up

BANGKOK -- Markets in Japan and Hong Kong rose Tuesday as a weaker yen boosted Japanese shares to a three-month high and a flurry of corporate deals suggested greater confidence in the economic recovery. European markets gained.

The deal announcements from Europe and the U.S. -- regarded as a sign companies are becoming more willing to part with cash to expand -- helped lift the Dow Jones Industrial Average into positive territory for the month on Monday, giving it a 0.7%. gain.

Japan led Asia's advance as weakness in the yen lifted exporter stocks like Nissan (NSANY), which shot up 6.1%. But China's market marched to a different drum beat, diving more than 2% amid fears the government will take steps to slow other sectors of the economy after vowing to control rising property prices.

Asian stocks have rallied massively from their March lows but gains have dimmed since November amid worries that markets have gotten ahead of the patchy recovery in the global recovery.

Economic news lately has shown that Asia is rebounding quickly from the recession, helped by lavish government stimulus spending, but the U.S., one of the biggest markets for the region's exports, remains sluggish.

Among the corporate transactions that boosted European and U.S. shares Monday was French drug maker Sanofi-Aventis' (SNY)$1.9 billion deal to buy U.S. health care products company Chattem (CHTT). Meanwhile, mining equipment maker Bucyrus (BUCY) said it planned to buy Terex's (TEX) mining equipment division for $1.3 billion and Dutch automaker Spyker submitted a new offer to buy Saab from General Motors.

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