Asia Stocks Gain On Hints Of Economic Recovery

PAMELA SAMPSON

BANGKOK (AP) ⿿ World stock markets were moderately higher Tuesday, continuing to get a boost from an unexpected improvement in U.S. hiring that added to signs the global economy might be emerging from its downturn.

Sentiment was also underpinned by expectations that the European Central Bank will support struggling countries such as Spain and Italy by buying their sovereign bonds.

European stocks opened higher. Britain's FTSE edged up 0.3 percent to 5,825.06. Germany's DAX added 0.7 percent to 6,963.65 and France's CAC-40 rose 0.9 percent to 3,430.70. Wall Street appeared headed for another day of gains, with Dow Jones industrial futures rising 0.3 percent to 13,104. S&P 500 futures rose 0.4 percent to 1,395.20.

Markets in Asia rose on the heels of a stronger-than-expected jobs report released Friday. The U.S. economy generated 163,000 jobs last month, the fastest pace since February and far more than economists were expecting. The upturn was seen as a sign that the U.S. may be resilient enough to pull out of a midyear slump and grow modestly.

Japan's Nikkei 225 index rose 0.9 percent to close at 8,803.31. Hong Kong's Hang Seng added 0.4 percent to 20,072.55. Australia's S&P/ASX 200 gained 0.4 percent to 4,291.60. South Korea's Kospi rose 0.1 percent to 1,886.80. Benchmarks in Singapore, Taiwan, and New Zealand were higher.

Mainland Chinese shares also rose. The Shanghai Composite Index gained 0.1 percent to 2,157.62. The smaller Shenzhen Composite Index gained 0.8 percent to 898.48.

"The surprising improvement in U.S. hiring contributed to the gains while it is also a technical correction after the loss in last 10 weeks or so," said Guo Yanhong, an analyst at Huachuang Securities, based in Shanghai.

Hopes that China's central bank was preparing to announce steps to spur growth in the world's No. 2 economy also helped boost confidence in stocks, analysts said. A weekend statement by the People's Bank of China was interpreted as a sign that more monetary easing was in store.

1 2 Next › Last »