TOKYO - ASIAN stock markets followed Wall Street sharply higher Tuesday, invigorated by fresh hopes for improved bank earnings and signs the regional economy is recovering.
The Dow rose overnight
IN NEW York overnight, the Dow rose 185.16, or 2.3 per cent, to 8,331.68. The broader Standard & Poor's 500 index jumped 21.92, or 2.5 per cent, to 901.05, its first finish over the 900 mark since July 1. It was the S&P's best day since June 1.
Wall Street futures pointed to modest gains Tuesday. Dow futures were up 10, or 0.1 per cent, at 8,269 and S&P futures rose 2.2, or 0.3 per cent, at 897.80.
The upbeat mood permeated the entire region, with financial stocks leading the gains. Oil climbed back above US$60 (S$87) a barrel after dropping sharply over the past week on concerns about weak global growth.
Japan's benchmark Nikkei 225 stock average rose 184.26 points, or 2 per cent, to 9,235.50, erasing most of the previous day's decline.
Hong Kong's Hang Seng index advanced 406.38, or 2.4 per cent, to 17,661.01 and Australia's key index was up almost 3 per cent.
Encouraging economic news propelled Singapore's main index up 1.7 per cent. The island's export-dependent economy grew for the first time in a year in the second quarter, according to preliminary figures, suggesting the region is emerging from the global slump.
Singapore's Trade and Industry Ministry said it now expects the economy to shrink between 4 per cent and 6 per cent this year, better than its previous forecast of a contraction between 6 per cent and 9 per cent.
The figures added to optimism following a strong showing overnight in New York, where the Dow Jones industrials jumped more than 2 per cent.
Rising bank stocks propelled US indexes to their biggest one-day gain in six weeks on Monday after influential banking analyst Meredith Whitney raised her rating on Goldman Sachs Group Inc. The bank reports earnings on Tuesday.
Financial stocks throughout the region climbed, with Nomura Holdings Inc, Japan's biggest securities company, surging 7.3 per cent. Chinese brokerage Haitong Securities Co gained 1.3 per cent, and DBS Group Holdings Ltd of Singapore advanced 2.3 per cent.
Japanese automakers were also higher after the Nikkei financial daily reported that Nissan Motor Co and Honda Motor Co are boosting production capacity in China. Nissan surged 7.5 per cent, and Honda was up 2.7 per cent. -- AP
