(1888PressRelease)
May 16, 2009 - Asian stock markets recovered modestly Friday, with Japan's benchmark gaining nearly 2 percent on better-than-expected news about company spending in the world's second-largest economy.
Regional markets, up sharply over the last two months, fell the previous session as evidence that U.S. consumers were still keeping wallets closed made investors think twice about their expectations of a second-half recovery.
But news Japanese machinery orders in March were less dismal than expected seemed to comfort investors once again, fitting a pattern of recent economic readings that suggest the global recession is easing.
While partly a technical bounce after Thursday's selling, analysts said many investors were still showing an appetite for riskier bets on stocks. They largely shrugged more grim reports about U.S. unemployment and foreign investment in China.
"Investors tend to look ahead and they don't want to get caught out during the recovery. That's why you're seeing some resilience,"said Stephen Yang, an analyst with Seedorf Luxman & Partners in Singapore.
Japan's Nikkei 225 stock average gained 171.29 points, or 1.9 percent, to 9,265.02, and Hong Kong's Hang Seng added 303.58, or 1.8 percent, to 16,845.27.
In other markets, South Korea's Kospi edged up 0.8 percent, Australia's index gained 1.3 percent and Taiwan's market rose 2 percent.
Overnight in the U.S, traders bought hard-hit financial and technology stocks to drive Wall Street higher, thought the buying was subdued after a worse-than-expected weekly unemployment report.
The Dow rose 46.43, or 0.6 percent, to 8,331.32. The S&P 500 index rose 9.15, or 1 percent, to 893.07, while the Nasdaq rose 25.02, or 1.5 percent, to 1,689.21.
Wall Street futures pointed to a higher open in the U.S. Friday. Dow futures were up 15 cents, or 0.2 percent, at 8,302 and S&P 500 futures rose 1.4, or 0.2 percent, to 890.90.
Oil prices hovered below $59 a barrel Friday in Asia as signs of a weak U.S. economy led investors to mull whether this month's crude rally was justified. Benchmark crude for June delivery was flat at $58.63; the contract climbed 60 cents overnight.
In currencies, the dollar weakened to 95.75 yen from 96.08. The euro was marginally lower at $1.3603.
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