Asian stocks up on Wall Street rebound, oil dip

March 04, 2011 | 09:49
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Asian stock markets pushed higher on Friday, lifted by a strong performance by Wall Street and a slight dip in oil prices.
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Tokyo's Nikkei index was up 1.59 per cent mid-morning, Sydney's S&P/ASX 200 index climbed 1.02 per cent, Shanghai's Composite Index was up 0.18 per cent and Hong Kong's Hang Seng rose 1.34 per cent.

The strong performance was underpinned by renewed optimism about the US economy, after the government reported that initial jobless claims had dropped to 368,000 in the week ending February 26, the lowest level since May 2008.

In addition a private-sector survey showed February sales in US chain stores were strong, while another gauge showed the country's vast service sector grew for a 15th consecutive month last month.

The Dow Jones Industrial Average rose 1.59 per cent, the broader S&P 500 index climbed 1.72 per cent and the tech-rich Nasdaq surged 1.84 per cent.

Markets were also encouraged by a respite in the climb in world oil prices.

In Asian trade, New York's main contract, light sweet crude for April delivery, rose 45 cents to $102.36 per barrel, while Brent North Sea crude for April gained 21 cents to $115. However the levels were still below Thursday's Asian oil prices.

Australian shares rose across the board, but led by commodity and energy firms.

Japan's export giants enjoyed a lift from the yen weakening on Thursday, although it was starting to rise again on Friday.

"All the positives are lined up with oil prices down, US stocks going up, and the yen weakening," Masayoshi Yano, senior market analyst at Meiwa Securities, told Dow Jones Newswires.

Brokerage firm UOB KayHian said statistical analysis showed the Hong Kong market had priced in much of the risk stemming from factors such as the instability in the Middle East and North Africa.

"We see very limited downside and recommend investors increase exposure to China stocks," it said.

The single European currency dipped to $1.3955 in Tokyo morning trade, compared to $1.3965 in New York late Thursday. It fell to 114.94 yen from 115.10 yen.

The dollar was slightly lower at 82.36 yen compared to 82.41 yen.

Gold opened at $1,417.60-$1,418.60 an ounce in Hong Kong, down from $1,426.00-$1,427.00.

AFP

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