Asian markets rise after US rally on upbeat data

Fri, Nov 6 05:55 AM

SEOUL, South Korea (AP) Asian markets advanced Friday on the back of Wall Street's rally after upbeat economic figures revived confidence about the state of the U.S. economy. Every major market turned higher, with Japan's Nikkei 225 stock average up 0.7 percent to 9,782 and Hong Kong's index gaining 1.7 percent to 21,841.

South Korea's benchmark rose 1.1 percent to 1,569.50. Markets in Australia, India, Singapore and Indonesia also rose.

Asian stocks are sensitive to movements in the U.S. the world's biggest economy and a key trading partner for the region and often follow big swings on Wall Street. Thursday's spark was news from the U.S. government that recently laid off workers seeking jobless benefits fell last week to the lowest level since January, comforting investors ahead of a key monthly jobs report due Friday.

Signs U.S. retail sales were on the rise also helped relieve worries about the health of American consumers that have dogged investors in recent months. "That means the economy is actually recovering better than people thought," said Jackson Wong, vice president at Tanrich Securities in Hong Kong.

"If the U.S. is doing well, everyone would be doing well." In New York, the Dow Jones index rose 203.82, or 2.1 percent, to 10,005.96, its first close above 10,000 since Oct.

22 and marking the biggest advance in nearly four months. The broader Standard&Poor's 500 index added 20.13, or 1.9 percent, to 1,066.63.

Friday's monthly jobs report in the U.S. will be in focus for global investors. Analysts say the report is expected to show U.S. unemployment rose to 9.9 percent last month.

Though the U.S. technically started growing in the third quarter after shrinking for a year, the unemployment rate has been rising steadily and is widely seen surpassing 10 percent as companies remain skittish about hiring amid a shaky economy. The figure is closely watched because it has a strong impact on national sentiment.

Consumers are unlikely to spend aggressively until the economy stops losing jobs, meaning lower demand for exports from Asian and other regions. Crude prices rose in Asia as the surge in stock markets boosted oil investors' appetite for risk.

Benchmark crude for December delivery was up 47 cents to $80.09 a barrel; the contract fell 78 cents overnight. Gold rose $2.6, or about 0.3 percent, to $1,091.9 an ounce.

The dollar slipped to 90.68 yen from 90.78 yen. The euro rose to $1.4875 from $1.4866.

Inside News

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