Asia Markets Gain for a Third Day (AP) (25-01-2008)

HONG KONG (AP) -- Most Asian markets gained for a third day on Friday, continuing their rally they plunged earlier this week, as investors took heart from Wall's Street's gains overnight and positive U.S. jobs figures. The U.S. government’s tax rebate for American consumers announced as part of President Bush's economic stimulus plan was also well received, as it was considered as adequate to ease consumer spending concerns

Japan's benchmark Nikkei 225 surged 536.38 points, or 4.10 percent, to close at 13,629.16. Hong Kong's Hang Seng Index was up 6.7 percent in afternoon trading.

In India, the benchmark Sensex was up 5 percent, while markets in Australia, South Korea, Taiwan and the Philippines also put in healthy advances. China's benchmark index was up about 1 percent in afternoon trading.

The region's markets have rebounded after the Federal Reserve slashed interest rates by three-quarters of a point on Tuesday, a move that also helped restore some investor confidence on Wall Street.

Investors were cheered by gains in U.S. markets, where the Dow Jones industrials rose Thursday for a second day after the Labor Department said the number of people seeking unemployment benefits last week fell for a fourth straight week.

A recovery in the dollar against the yen Friday helped lift Japanese exporters' stocks, with Toyota Motor Corp. jumping 6.3 percent, Honda Motor Co. rising 6.5 percent and Sony Corp. climbing 2.4 percent.

The dollar was trading at 107.46 yen, up from 106.79 yen late Thursday in New York. A stronger dollar boosts exporters' overseas earnings when converted back to yen.

Hong Kong gainers were led by property issues on expectations that the Fed would again slash rates when it meets next Tuesday and Wednesday. Hong Kong banks usually match U.S. rate cuts as the Hong Kong dollar is pegged to the U.S. dollar.

The Dow Jones industrial average rose 0.88 percent to 12,378.61 on Thursday, following a 2.5 percent surge on Wednesday. The NASDAQ composite index advanced 1.9 percent to 2,360.92.

U.S. stock index futures were also up, suggesting that rally could continue. Dow futures were up 93 points, or 0.75 percent, to 12,460, while NASDAQ futures were up 22.25 points, or 1.2 percent, to 1,859.25.

Source: AP