Asian stock markets track Wall Street higher

Jeremiah Marquez ,  The Associated Press ,  Hong Kong   |  Fri, 06/26/2009 1:01 PM  |  Business

Asian stocks gained Friday, following an overnight recovery on Wall Street after strong profits at a handful of U.S companies buttressed optimism about the world's largest economy.

Select Asian energy firms gained as crude oil prices traded above $70 a barrel. The dollar was modestly higher against the yen.

Investors were encouraged after U.S. markets snapped a four-day losing streak with the help of better-than-expected earnings from homebuilder Lennar Corp. and home furnishings chains Bed Bath & Beyond Inc.

The news underpinned hopes that consumer spending, one of the engines of U.S. growth, was picking up after falling over the last year. It also helped investors shrug off another bleak sign that unemployment is rising.

Despite the gains, some investors don't expect the rally that began in March and started to taper off earlier this month to resume anytime soon.

"I think many investors are waiting for more confirmation that the macro economies are recovering," said Winson Fong, managing director at SG Asset Management in Hong Kong, which oversees about $2 billion in equities in Asia. "Without the fundamentals it's hard to see us moving sharply in one direction or the other right now."

Japan's Nikkei 225 benchmark added 64.51, or 0.7 percent, to 9,860.59, and Hong Kong's Hang Seng added 212.62, or 1.2 percent, to 18,487.65.

Elsewhere, Korea's Kospi was flat, Australia's benchmark gained 1.4 percent and India's Sensex turned higher by 0.3 percent.

Overnight in the U.S, the Dow rose 172.54, or 2.1 percent, to 8,472.40, after falling 40 points in the early going. It was the biggest point and percentage gain for the blue chips since June 1.

The broader Standard & Poor's 500 index rose 19.32, or 2.1 percent, to 920.26.

Wall Street futures pointed to a weaker opening in the U.S. Friday. Dow futures lost 29, or 0.3 percent, to 8,385 and S&P futures dropped 3.5, or 0.4 percent, to 913.10.

Oil prices held above $70 a barrel Friday in Asia as investors mulled mixed signs about the strength of the U.S. economy and crude demand. Benchmark crude for August delivery added 42 cents to $70.65. On Thursday, it gained $1.56.

The dollar traded at 95.82 yen compared to 95.82 yen. The euro strengthened to $1.4045 from $1.4004.

Copyright © 2008 The Jakarta Post - PT Bina Media Tenggara. All Rights Reserved.