Asian Stocks Gain, Europe Falls as US GDP Eyed

A passers-by looks at an electronic stock indicator in downtown Tokyo on Friday, July 31, 2009....

A passers-by looks at an electronic stock indicator in downtown Tokyo on Friday, July 31, 2009. Japan's benchmark Nikkei stock average rose 139.69 points, or 1.37 percent, from Thursday to end the morning session at 10,304.90. (AP Photo/Koji Sasahara)

(AP)

Asian stock markets closed out a robust July with more gains Friday as better-than-expected earnings at companies from Japan to the U.S. reinforced hopes of stronger global growth. European markets were weaker in early trade.

Every major Asian market turned higher with Chinese and Indian markets leading the way. Crude oil prices resumed their upward trek to trade above $67 a barrel.

Investors worldwide cheered last-quarter results released in recent days that seemed to show many companies are faring better than expected despite the downturn and expect growth to pick up later this year.

In Japan, electronics and entertainment giant Sony Corp. posted a smaller loss than forecast. Also lifting sentiment were results from leading Western companies like U.S. electronics giant Motorola Inc., which posted a surprise profit, and British telecom firm BT Group PLC.

Dennis Poon, research head at South China Securities in Hong Kong, said he expects markets, particularly those in Asia, to march higher as earnings potential and liquidity lure more money into stocks.

"We are in a bull market, the momentum is here and the direction is up," Poon said. "Given all the growth, I think we may be only at fair value right now."

European shares were mostly lower ahead of a key report on U.S. economic output last quarter. British and German markets were off 0.1 percent while France's index lost 0.3 percent. Stock futures pointed to modest gains Friday on Wall Street with Dow futures up 49 points, or 0.5 percent, to 9,139.

In Asia, Japan's Nikkei 225 stock average gained 191.62 points, or 1.9 percent, 10,356.83, with investors seemingly unfazed by news the country's unemployment rate hit a six-year high in June of 5.4 percent, threatening to stall a recovery in the world's second-biggest economy. Economists predict a new record high in the months to come.

Chinese shares continued to recover after tanking Wednesday amid fears the government would constrict liquidity. The Shanghai benchmark jumped 2.7 percent to 3,412.06. Hong Kong's Hang Seng added 1.7 percent to 20,573.33.