Asian markets rise on Wall Street recovery

By YURI KAGEYAMA

posted: 12 DAYS 3 HOURS AGO

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TOKYO -Asian markets were mostly higher Monday, encouraged by good news about Japanese economic growth and a recent surge on Wall Street.

Japan's economy expanded at an annual pace of 4.8 percent in the third quarter, marking a second straight quarter of expansion and the strongest surge in gross domestic product since 2007.

Some of the optimism was tempered by lingering doubts over whether the number was inflated by government stimulus measures for ecological vehicles and electronic goods. Unemployment is still at near-record highs, and worries remain about a U.S. recovery.

Reports that Mitsubishi UFJ Financial Group, Japan's biggest banking group, planned to issue new shares to boost capital were a drag on the region's biggest bourse. Mitsubishi UFJ said no decision had been made.

"The Nikkei is encouraged first of all by the rally in New York, and Asian markets overall are higher," said Mitsushige Akino at Ichiyoshi Investment Management in Tokyo.

But Akino noted that broader indicators for Tokyo stocks weren't holding up because of deep fears about the nation's recovery.

Worries about the policies in store from the new government of Prime Minister Yukio Hatoyama were also chilling market sentiments, Akino said.

Hatoyama has promised to eliminate waste in government spending and is ending dam construction and other public works projects.

Japan's benchmark Nikkei 225 stock average fluctuated in morning trading, erasing earlier gains before adding 12.38 points, or 0.13 percent, to 9,782.69. Hong Kong's Hang Seng rose 1.5 percent to 22,885.50.

Elsewhere, South Korea's market inched up 0.2 percent, while markets in New Zealand, Taiwan and Indonesia also gained.

In the U.S., the Dow Jones industrial average ended last week up 2.5 percent, while the broader Standard & Poor's 500 index rose 2.3 percent. But views on Wall Street remain mixed between those who see a solid recovery and those who say that will take longer.

The dollar fell to 89.66 yen from 89.81. The euro declined to $1.4956 from $1.5030.

2009-11-16 00:01:07