Asian stock markets follow Wall Street higher

(AP:TOKYO) Asian stocks extended their gains Tuesday after Wall Street touched its highest level for 2009 amid optimism low interest rates would continue to power this year's rally in global markets.

It marked the third straight advance for the region, with Japan and Hong Kong markets helping lead the way with gains of nearly 1 percent. Oil and gold prices softened, while the dollar slipped against the yen.

Investors were cheered by an overnight surge in the U.S., where the Dow Jones rocketed 2 percent Monday to its best finish since Oct. 3, 2008. Also boosting traders' moods in Asia was news the Group of 20 major countries will keep economic stimulus measures in place, as well as relatively healthy earnings reports at Japanese companies, analysts said.

Shinichiro Matsushita, analyst with Daiwa Securities Co. in Tokyo, was wary of the markets' rally given few signs of a robust recovery in the U.S economy, noting a worsening employment picture that could weigh on consumer demand and hurt Asian exports.

"When you look at employment data, it is not clear yet that consumer sentiment has recovered," Matsushita said.

Japan's Nikkei stock average gained 64.16 points, 0.7 percent, 9,873.15, and Hong Kong's Hang Seng added 217.55, or 0.98 percent, to 22425.

South Korea's markets gained 0.4 percent to 1582.24. Shares were also higher in Australia, Taiwan, Indonesia and the Philippines.

In the U.S., the Dow rose 203.52, or 2 percent, to 10,226.94. The index hit 10,228.23 at one point, topping its previous 12-month trading high of 10,119.46 set last month.

The broader Standard & Poor's 500 index rose 23.78, or 2.2 percent.

U.S. futures were down slightly, auguring a lower open on Tuesday.

Oil prices drifted below $79 in Asia, with benchmark crude for December delivery down 49 cents to $78.94. The contract rose $2 overnight.

The dollar was trading at 89.73 yen, down from 89.95 yen. The euro edged lower to $1.4979.



Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

< Back to News Index