Asian markets advance cautiously (AP) (03-06-2009)

BANGKOK (AP) -- Asian stocks were trading in positive territory on Wednesday as investors remained uncertain about whether the worst of the global recession is over and feared that the recent rally will lose steam.

Data from Australia and the U.S. provided more evidence that economies are beginning to heal but was still short of the definitive confirmation of recovery that investors are hoping for.

Pending home sales in the U.S. recorded their biggest jump in nearly eight years in April while Australia's economy unexpectedly grew in the first quarter -- edging up 0.4 percent -- as a government stimulus package boosted consumer spending.

In Japan, the Nikkei 225 stock average was up 42.80 points, or 0.5 percent, at 9,748.27, while Hong Kong's Hang Seng gained 419,69, or 2.3 percent, to 18,808.77 on optimism that China will rebound from its economic slowdown. South Korea's Kospi gained 0.3 percent to 1,415.93.

Australia's index gained 1.3 percent and China's Shanghai market climbed 1.1 percent. Taiwan stocks fell 1.1 percent.

Crude oil prices hovered above $68 a barrel near a seven-month high as investors sought a safe haven in commodities from a weaker U.S. dollar and inflation. Benchmark crude for July delivery was up 8 cents to $68.61 a barrel by early afternoon in Singapore in electronic trading on the New York Mercantile Exchange.

Among currencies, the dollar was trading at 95.62 yen from 95.45 yen while the euro kept climbing against the dollar, rising to $1.4315 from $1.4293 late Tuesday in New York.

Source: AP