Asian stocks mostly higher after US extends rally

[March 27, 2009]  HONG KONG (AP) -- Asian stock markets were mostly higher Friday, following gains on Wall Street as stronger-than-expected earnings reports from leading U.S. companies added to newfound optimism about the world economy. European markets opened mixed.

Asia's modest advance extended this month's bull run, driven by government measures to end American's recession as well as signs its banks and economy are faring better than expected.

The latest upbeat news again came from the U.S., where bellwether firms Best Buy Co. and ConAgra Foods Inc. reported results that topped Wall Street's forecasts. Good demand at a U.S. government debt auction -- critical to funding the country's huge economic stimulus and financial bailout programs -- also encouraged traders.

While there may be more upside to the March rally, many investors will continue to watch closely for corporate distress during earnings seasons in Asia and elsewhere. Further evidence that government measures worldwide are starting to filter through the broader economy will also figure heavily.

"We're turning a little bit more cautious for the shorter term, although the macro data and government measures are quite encouraging," said Diane Lin, a Sydney-based fund manager at Pengana Capital. "We still need to see the whole packages unfold and what that will bring to the economy and the financial system."

Hong's Kong Hang Seng index edged up 10.52 points, or 0.1 percent, to 14,119.50 after a choppy session, while Australia's S&P/ASX index added 0.7 percent to 3,672.3.

Japanese stocks reversed early gains, ending an otherwise stellar week on a slightly lower note. The benchmark Nikkei 225 average dipped 9.36 points, or 0.1 percent, to 8,626.97. But the index gained 8.6 percent over the past five sessions -- its biggest one-week gain since October.

Tokyo's market was dragged lower by shares of shipping companies, which fell after sector leader Nippon Yusen K.K slashed its earnings forecasts for this fiscal year.

In mainland China, the Shanghai Composite Index rose for a second day, climbing 0.5 percent to 2,374.44, bringing its weekly gain to 4.1 percent. The advance was led by steel and silicon chip makers.

The Philippines' main index jumped 2.6 percent, while India's Sensex rose 0.4 percent to 10,039.38.

European markets opened mixed. Britain's FTSE 100 rose 0.2 percent to 3,931.10, while Germany's DAX dipped 0.3 percent to 4,247.07. France's CAC 20 fell 0.3 percent to 2,884.07.

Thursday in New York, the Dow gained 174.75, or 2.3 percent, at 7,924.56, its highest close since Feb. 12. Broader stock indicators also gained, with the Standard & Poor's 500 index up 18.98, or 2.3 percent, to 832.86.

Wall Street's was headed for a lower open after U.S. futures lost ground. Dow futures were down 46 points, or 0.6 percent, while S&P futures were down 5.7 points, or 0.7 percent.

Oil prices retreated on concerns about the sustainability of recent gains. Benchmark crude for May delivery fell 65 cents to $53.69 a barrel by late afternoon in Asian electronic trading on the New York Mercantile Exchange.

In currencies, the dollar fell to 98.25 yen from 98.63 yen, while the euro fell to $1.3464 from $1.3528.

[Associated Press; By JEREMIAH MARQUEZ]

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