BANGKOK (AP) — Asian stocks were higher Wednesday as investors brushed aside unrest in the Middle East and a nuclear crisis in Japan to focus on what some hope is a more positive longer-term outlook for equity markets.
Japan's benchmark Nikkei 225 index rose 1.9 percent to 9,641.89 following the release of data showing the country's industrial production climbed for the fourth straight month in February.
But the government warned that industrial production would fall sharply as the effects of the devastating March 11 earthquake and tsunami dragged down the economy. The disaster wiped out much of Japan's industrial northeast and disabled a nuclear power plant, causing potentially dangerous radiation leaks affecting air, water and food.
Meanwhile, oil prices extended losses below $105 a barrel after a report showed U.S. crude supplies rose more than expected last week, suggesting rising fuel costs may be crimping demand.
Energy markets have been rattled by pro-democracy uprisings that have cut off oil exports from Libya and threatened disruptions of crude supplies from major oil producers like Saudi Arabia and Iran.
With all the trouble looming, analysts couldn't quite explain why investors were choosing to look at the bright side.
"We can't see any real reason as to why the markets are moving higher. All of the macro concerns that saw them violently sell off three weeks ago are still present to some degree. For one reason or another, markets are now choosing to look beyond these concerns and focus on the positive longer-term outlook," said Ben Potter of IG Markets in Melbourne.
As investors waited for signs the nuclear crisis in Japan was stabilizing, they snapped up shares in export stocks helped by a weakening yen. Consumer electronics maker Sharp Corp. was up 3.9 percent, and — despite serious production disruptions — Toyota Motor Corp. rose 1.8 percent. Nissan Motor Corp. gained 3.3 percent.
Shares in Japanese companies expected to play a major role in rebuilding the country's quake-shattered northeast also rose. Mitsubishi Heavy Industry Ltd. gained 3 percent. Electronics maker Hitachi Ltd. surged 7.2 percent after Kyodo news agency reported the company had partially resumed operations in eastern Japan, .
But Tokyo Electric Power Co. Inc., operator of the heavily damaged nuclear plant, continued its free fall, with shares dropping a walloping 17.7 percent.
Elsewhere, Hong Kong's Hang Seng index rose 1.6 percent to 23,419.80, with Agricultural Bank of China Ltd. up 2.2 percent after announcing its 2010 profit soared 46 percent, driven by an economic rebound and growth of rural business. Air China Ltd. rose 1.7 percent after the company said its 2010 profit more than doubled to 12 billion yuan ($1.8 billion).
Hutchison Whampoa Ltd. was one of the biggest gainers in Hong Kong, rising 4.7 percent after reporting that annual profit jumped as its third-generation mobile phone unit was finally profitable. The conglomerate owned by billionaire Li Ka-shing also raised its dividend for the first time in a decade.
South Korea's Kospi was up 1 percent to 2,091.96. Shares in Singapore, Taiwan, Malaysia, and New Zealand were also higher. Australia's S&P/ASX 200 rose 1.4 percent to 4,822.20.
Bucking the trend were indexes on mainland China. The Shanghai Composite Index dropped 0.3 percent to 2,946.55 and the smaller Shenzhen Composite Index declined 0.8 percent to 1,265.
In New York on Tuesday, stocks finished broadly higher after consumer confidence fell less than some analysts had feared.
The S&P 500 rose 9.25 points, or 0.7 percent, to 1,319.44. The Dow Jones industrial average gained 81.13 points, or 0.7 percent, to 12,279.01. The Nasdaq composite rose 26.21, or 1 percent, to 2,756.89.
Benchmark crude for May delivery was down 30 cents to $104.49 on the New York Mercantile Exchange. The contract gained 81 cents to settle at $104.79 per barrel on Tuesday as concerns about ongoing violence in the Middle East and North Africa sent oil prices slightly higher.
The euro was little changed at $1.4093. The dollar rose to 82.91 yen from 82.43 yen in New York late Tuesday.
