Asia stocks gain as Japan economic signs improve

The Associated Press , Hong Kong | Fri, 02/26/2010 2:15 PM | Business

Asian stock markets climbed Friday as more evidence Japan's economy was turning around added to optimism about the region's economic prospects.

The move higher bucked selling in the U.S. and Europe overnight. The euro, meanwhile, regained some ground after concerns over Greece's mounting debt crisis pulled the currency lower the day before. Oil prices headed toward $79 a barrel.

Japan's economy, the world's second biggest, showed more signs of recovery.

Factory output, a key measure economic health, rose a better-than-expected 2.5 percent in January from the previous month, the government said. Shoppers were also in a better mood last month, sending retail sales surging nearly 3 percent, the most in about 2 1/2 years.

In Tokyo, the Nikkei 225 stock average rose 24.07 points, or 0.2 percent, to 10,126.03 and Hong Kong's Hang Seng added 259.89, or 1.2 percent, to 20,659.46.

Elsewhere, South Korea's market rose 0.4 percent and Australian shares gained 1 percent.

In currencies, the euro rose to $1.3577 from $1.3547. The dollar strengthened to 89.33 yen from 89.13 yen.

Oil prices climbed in Asian trade, with benchmark crude for April delivery up 35 cents at $78.52. The contract lost $1.83 to $78.17 overnight.

Asia's advanced built on the upward momentum of Wall Street, where stocks pared a sharp loss to close modestly lower.

U.S. investors were unnerved by more pain in the country's labor market, as shown by an unexpected jump in unemployment insurance claims, and news Greece's credit rating might soon be cut again.

The Dow fell 53.13, or 0.5 percent, to 10,321.03.

The broader Standard & Poor's 500 index slipped 2.30, or 0.2 percent, to 1,102.94. The Nasdaq composite index fell 1.68, or 0.1 percent, to 2,234.22.