Asian markets advance on improving economic climate (AP) (12-06-2009)

BANGKOK (AP) -- Most Asian stock markets gained on Friday as improving economic data from the China and U.S. acted as confirmation that the worst of the global recession is passing.

Investors were heartened by U.S. reports showing a drop in jobless claims and higher retail sales in the world's largest economy -- a major Asian export market -- although gains on Wall Street were limited overnight on concerns the three-month rally in markets worldwide is nearing its limit.

China also got more positive news Friday when the government said retail sales and industrial output grew strongly in May amid heavy stimulus spending. That followed figures showing domestic investment in factories, real estate and other fixed assets soared 32.9 percent in the first five months of the year, even as exports and imports tumbled in May.

Optimism in Japan lifted the Nikkei 225 average above the 10,000 mark, which it briefly crossed Thursday, with the index climbing 154.19, or 1.6 percent, to 10,135.82, an eight-month high.

Hong Kong's Hang Seng index pared earlier gains to trading up just 15 points, or 0.1 percent, to 18,816.53. Australia's key index gained 0.4 percent to 4,062.2, while South Korea's Kospi climbed 0.7 percent to 1,428.59.

Shanghai's Composite index, which has surged more than 45 percent so far this year, fell 2.1 percent to 2,736.64, as investors were jittery after the dismal trade figures. Most economists, however, say said the worst of China's trade slump appeared to be past.

Oil prices fell back after hitting an eight-month high Thursday. Benchmark crude for July delivery slipped 67 cents to $72.02 a barrel by afternoon Singapore time in electronic trading on the New York Mercantile Exchange. A day earlier, it climbed to $72.68.

In currencies, the dollar rose to 97.96 yen from 97.51 yen late Thursday, while the euro fell to $1.4099 from $1.4125.

Source: AP