Asian stocks advance ahead of stress test results; Nikkei catches up (AP) (07-05-2009)

HONG KONG (AP) -- Asian stock markets extended gains on Thursday after the overnight late surge on Wall Street higher as early reports about the U.S. government's tests of banking health helped allay investor concerns about the financial sector.

Japanese shares led the way, with the Nikkei benchmark jumping 4 percent, as investors returning from a three-day holiday played catch up with gains on other regional markets this week. Oil prices, which hit a new high for 2009 overnight, continued to gain ground.

Early news about the banks' balance sheets - the official announcement is today -heartened investors and spirits rose higher on news of better-than-expected employment in both the U.S. and Australia.

In Japan, the Nikkei 225 stock average surged 354.54 points, or 4 percent, to 9,331.91, and Hong Kong's Hang Seng was up 132.47 points, or 0.8 percent, to 16,967.04. South Korea's Kospi inched up 0.3 percent to 1,397.65.

Elsewhere, Australia's benchmark rose about 1.5 percent. But Chinese and Taiwanese markets, bother higher in recent days amid news of greater economic cooperation between the two rivals, were down moderately.

Oil prices extended their gains to near six-month highs on investor expectations global economic growth may begin to rebound by the end of the year. Benchmark crude for June delivery was up 33 cents to $56.67 a barrel. The contract Wednesday rose 4.6 percent, or $2.50, to settle at $56.34, the highest level since mid-November.

In currencies, the dollar fell to 98.56 from 98.62. The euro was lower at $1.3291 from $1.3305.

Source: AP