(1888PressRelease)
May 01, 2009 - Asian stocks rallied Thursday as U.S. and Japanese economic data signaled the global recession was letting up, while Taiwan's market surged after a historic agreement clearing the way for Chinese investment.
The swing higher marked a return to the buying that's powered stocks since March and recoups losses over the past few days as investors worried about the swine flu outbreak and losses at major banks.
Among the day's best performers were exporters, lifted by U.S. figures showing a sharp rebound in consumer spending and a record drop in business inventories. The news suggested the world's largest economy may have hit bottom and its companies may need to increase their spending, which would give Asia's own export-reliant countries a badly needed boost.
Those views were echoed by the U.S. Federal Reserve, whose policy makers said Wednesday after a two-day meeting that the economy, though still contracting, was doing so at a slower pace. There also were signs of life in Japan, where industrial production rose for the first time in six months in March.
"We are seeing some signs of stabilization, and it supports the case that things are gradually improving," said Stephen Yang, an analyst with Seedorf Luxman & Partners in Singapore.
Japan's market returned from a holiday Wednesday ready to buy, and the Nikkei 225 stock average jumped 334.49 points, or 3.9 percent, to 8,828.26. Hong Kong's Hang Seng rose 341.81 points, or 2.3 percent, to 15,298.76, while South Korea's Kospi added 2.3 percent to 1,369.36.
Taiwan's market led the region, with its benchmark surging 6.7 percent, after the government said it will allow institutional investors from China to buy into the island's stock market for the first time since the two sides split in civil war decades ago.
Taiwan's decision late Wednesday is the first step in a wide-ranging financial cooperation program it is launching with the mainland, an often hostile rival dating from a 60-year-old civil war.
China's benchmark was little changed, up just 0.3 percent. Elsewhere, Australia's index rose 2.3 percent and Singapore's stock measure added 2.2 percent.
Overnight in New York, the Dow vaulted 168.78, or 2.1 percent, to 8,185.73, leaving the blue chips down about 591 points, or 6.7 percent for the year.
The Standard & Poor's 500 index gained 18.48, or 2.2 percent, to 873.64, its highest close since Jan. 28.
Oil prices were higher in Asian trade, with benchmark crude for June delivery gaining 55 cents to $51.52 a barrel by midday in Singapore. The contract Wednesday gained $1.05 to settle at $50.97.
The dollar slipped to 97.33 yen from 97.49 yen. The euro strengthened to $1.3320 from $1.3268.
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