Asian Markets Rise After Goldman, Intel Earns

Asian stock markets rose for a second day Wednesday, underpinned by better-than-expected U.S. earnings and optimism the regional economy is on the mend. European shares were higher.

A currency trader works in front of a screen showing the Korea Composite Stock Price Index (KOSPI),...

A currency trader works in front of a screen showing the Korea Composite Stock Price Index (KOSPI), left, and foreign currency rate at the Korea Exchange Bank headquarters in Seoul, South Korea, Wednesday, July 15, 2009. The KOSPI on Wednesday jumped 35.30 points, 2.55 percent, to close 1,420.86. (AP Photo/Ahn Young-joon)

(AP)

Gains across the region were broad-based as recent pessimism about economic recovery gave way to relief that the U.S. corporate earnings season hasn't produced any big disappointments so far.

Investors have been focusing on earnings for clues about the state of the world's largest economy, currently mired in its deepest recession in decades. The big rally in world markets between March and June stalled in the past few weeks as data suggested any economic recovery would be a long, hard slog.

Japan's benchmark Nikkei 225 stock average rose 7.44 points, or 0.1 percent, to 9,269.25 after gaining 2.3 percent the day before to snap a nine-session losing streak.

Hong Kong's Hang Seng jumped 372.93, or 2.1 percent, to 18,258.66 and South Korea's Kospi, the region's best performer, gained 2.6 percent.

Elsewhere, Australia's benchmark index gained 1.5 percent and China's Shanghai index rose 1.4 percent. India's Sensex was up 1.5 percent.

European stocks rose in early trading. The FTSE 100 index of leading British shares gained 0.1 percent, to 4,278.26 while Germany's DAX rose 1.4 percent, to 4,847.49. France's CAC-40 gained 1.2 percent, to 3,119.65.

"I think there is more evidence of economic recovery in the region," Mark Tan, who helps manage about $15 billion of equities and bonds at UOB Asset Management in Singapore, said of Asia.

Tan cited Singapore's second-quarter growth figures Tuesday which showed the city-state's economy expanded an annualized 20 percent and marked its first growth in a year. He said that Chinese growth figures — due Thursday — would likely add to the recovery picture.

Analysts are expecting Asia's second-largest economy to have grown between 6.8 percent and 7 percent in the three months ended June 30. China's economy grew 10.1 percent in the same period last year and expanded 6.1 percent in the first quarter, its lowest rate in more than a decade.