Asian markets extend gains on China optimism (AP) (22-06-2009)

BEIJING (AP) -- Asian stock markets extended their gains on Monday as optimism grew about China after the Chinese premier said the economy was improving.

Hong Kong's Hang Seng index surged 394.11 points, or 2.2 percent, to 18,309.49 after China's Premier Wen Jiabao was quoted by state media over the weekend as saying China's economy was beginning to recovery steadily amid government stimulus spending. He said Beijing will maintain an easy credit policy to support growth.

China's Shanghai Composite index rose 26.13 points, or 0.9 percent, to 2,906.62. Japan's Nikkei 225 stock average edged up 28.01 points, or 0.3 percent, to 9,814.27, while South Korea's Kospi climbed 5.96 points, or 0.4 percent, to 1,388.98.

Sentiment in China was helped by the World Bank's decision last week to raise its forecast of the country's 2009 economic growth from 6.5 percent to 7.2 percent. Chinese stocks rose last week to a 10-month high, driven by recent data showing investment, retail sales and other indicators improving despite a plunge in exports.

Elsewhere in Asia, India's Sensex opened higher, climbing 0.5 percent to 14,599.54, while Australia's benchmark added 0.6 percent to 3,923.5.

Oil slipped in Asia, with benchmark crude for July delivery dropping 38 cents to $69.17 a barrel. On Friday, it fell $1.82 to $69.55.

In currencies, the dollar fell to 95.88 yen from 96.26 yen late Friday in New York. The euro declined to $1.3911 from $1.3936.

Source: AP