ABN: Asian stocks rise as oil prices hit new 2009 high
HONG KONG - Asian stock markets recovered Wednesday as oil prices touched a new high for 2009 near $71 a barrel and fears of inflation eased in China.
Major indexes gained 2 percent or more as buyers returned after two days of losing sessions. The dollar was modestly higher against the yen.
After a three-month advance, global markets have showed a lack of direction in recent days amid worries that the rally was getting too far ahead of any improvements in the economy.
But some investors found more reason for optimism after China reported prices fell in May for a fourth month, moderating the threat of inflation and giving Beijing a freer hand to carry out its giant stimulus plan.
Helping lead the broader market were commodity producers as crude oil prices continued their march higher. While taken by some as a sign of increasing economic activity, the rise in commodity prices of late is also being driven by less-wholesome factors like worries about the U.S. dollar and inflation, as well as massive liquidity, analysts said.
"There's an overriding hope that the commodity rally is signaling a recovery," said Kirby Daley, senior strategist at Newedge Group in Hong Kong. "But some of the fundamental decay at the core of the economy is still there, so I think investors may be getting ahead of themselves."
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Japan's Nikkei 225 stock average gained 196.16 points, or 2 percent, to 9,982.98, and Hong Kong's Hang Seng added 384.36, or 2.1 percent, to 18,442.85.
In South Korea, the Kospi rose 2.8 percent to 1,409.75. Australia's benchmark rose about 2 percent, while Shanghai rose 0.6 percent.
Wall Street futures gained, suggesting a stronger session in the U.S. Dow futures rose 41, or 0.5 percent, to 8,783 and S&P futures climbed 4.3, or 0.5 percent, to 943.90.
On Tuesday, the Dow Jones industrial average fell 1.43, or less than 0.1 percent, to 8,763.06. The broader S&P 500 index rose 3.29, or 0.4 percent, to 942.43.
Oil prices closed in on $71 a barrel Wednesday in Asia, with benchmark crude for July delivery up 88 cents at $70.89. On Tuesday, the contract jumped $1.92.
The dollar rose to 97.56 yen from 97.66 yen. The euro traded higher at $1.4088.
