Asian Stocks Higher; Nikkei Rises 1.5%

SEOUL, South Korea -- Asian stock markets rose Thursday as investors hungry for good news seized on stronger U.S. manufacturing as a sign the world economy isn't slowing as much as feared. European shares were lower.

The second day of gains in Asia follows a month of heavy selling amid jitters about the global recovery as figures from major economies suggested growth was faltering.

Some of that uncertainty was lifted after the Institute for Supply Management said manufacturing in the U.S. rose in August, in contrast to regional reports from recent weeks that pointed to waning activity.

The report came on the heels of figures from China showing that manufacturing growth improved and auto sales rebounded in August, suggesting the world's second-biggest economy may not be cooling as quickly as first thought.

"I think the fear of recession subsided so people are looking at the bright side -- until the next set of economic data like unemployment," said Francis Lun, general manager at Fulbright Securities in Hong Kong. "If unemployment rises the market will tank again, which means the recovery is really an illusion."

The U.S. Bureau of Labor Statistics is scheduled to release nonfarm payroll and unemployment figures for August on Friday. Economists say the unemployment rate, which stood at 9.5 % in July, must come down for there to be confidence a genuine recovery is taking hold.

In Europe, Britain's FTSE 100 fell 0.1% to 5,358.77. Germany's DAX declined 0.3% to 6,065.53 and France's CAC-40 retreated 0.1% to 3,619.67.

Wall Street futures were lower, suggesting a slight pullback after big gains the day before.

Japan's Nikkei 225 stock average gained 1.5% to 9,062.84. Tech issues rose, with Sony(SNE) up 2.2 % and Canon(CAJ) 1.2 % higher.

Japanese automakers also gained, despite data showing that U.S. auto sales tumbled last month, making it the worst August since 1983. Shares of Nissan(NSANY), whose U.S. sales retreated by 7% from July, added 2.9 %.

Hong Kong's Hang Seng index rose 1.2% to 20,868.92 and Seoul's Kospi advanced 0.6% to 1,775.73. Australia's S&P/ASX 200 added 0.8% to 4,532.70 after gaining 2.1% the day before on the country's strongest economic growth figures in three years.

Elsewhere in Asia, India's Sensex was up 0.4% to 18,279.66. Indonesian shares, however, bucked the trend in the region, with the benchmark index in Jakarta falling 0.3%.