Asian stocks advance on US stimulus hopes (AP) (06-02-2009)

HONG KONG (AP) -- Asian stocks rose on Friday, with benchmarks in Tokyo and Hong Kong up more than 1%, as investors hope that the massive stimulus measures taken globally may mitigate the worst global slowdown in decades.

Investors were optimistic the U.S. plan, which swelled to $920 billion as of Thursday, would soon win approval from lawmakers, providing some clarity about how long recession in the world's largest economy might last. Debate in the Senate continued for the fourth day as some lawmakers pressed for cuts.

Japan's Nikkei 225 stock average rose 95.92 points, or 1.2%, to 8,052.80, while Hong Kong's Hang Seng rose 190.18 points, or 1.4%, to 13,369.08. South Korea's Kospi was up 1.4% at 1,194.46.

Shanghai's index added 2%, Australia's benchmark was up 1.3% and Taiwan's main stock measure was 2.6% higher.

In Japan, shares in Toyota Motor Corp. rose 2.3%. The company's earnings, pointing to a grim outlook, were  released after the market's close. The gains came even as Moody's Investors Service lowered its credit rating on the company, saying the tough global auto market was seriously hurting the firm's profits.

Markets will be watching closely the release of Friday's January employment report in the U.S. for clues to the health of American consumers, whose spending habits are critical to Asia's export-dependent Asian economies.

Oil prices were lower, with light, sweet crude for March delivery off 32 cents at $40.85 a barrel in Asian trade on the New York Mercantile Exchange. Overnight, the contract rose 85 cents to settle at $41.17.

In currencies, dollar traded at 90.88 yen, down from 90.51 yen earlier. The euro was little changed at $1.2795 compared to $1.2794.

Source: AP