Asia Markets Rise, Heartened By Wall Street's Advance And US Jobs Data

HONG KONG: Asian markets rallied on Friday, taking heart from Wall Street where new economic data offered a glimmer of hope for an economy that many fear is slipping into a recession.

The strong advance further lifted Asian markets from their swoon earlier this week, but traders still warned that trading would likely be volatile.

Hong Kong's Hang Seng Index jumped nearly 6 percent in early trade before trimming some gains. By midmorning, it was up 1,138 points, or 4.83 percent, at 24,667 points. The index fell 2.2 percent the previous day.

In Tokyo, Japan's benchmark Nikkei 225 index extended its gains for a second straight session, rising 367.05 points, or 2.8 percent, to 13,459.83 by midday. It gained 2.1 percent Thursday.

Markets in Australia, South Korea, Taiwan and the Philippines were also up.

Traders took their cue from Wall Street, where the Dow Jones industrials rose more than 100 points on Thursday on economic figures which suggested the U.S. job market is holding up. Investors were also cheered by strong gains Thursday in Europe.

Hong Kong gainers were led by property issues on expectations that the U.S. Federal Reserve would again slash rates when it meets next Tuesday and Wednesday. Hong Kong banks usually match the U.S. rate cuts as the Hong Kong dollar is pegged to the US currency.

Asian markets have had a volatile week, buffeted by worries that the US, a key export market and the world's biggest economy, was going to contract.

On Monday and Tuesday, all Asian markets suffered steep losses before rebounding Wednesday after the U.S. Fed slashed lending rates by 0.75 percent.

Investors also took heart from new data out of the U.S. Thursday night showing the number of people seeking unemployment benefits last week fell for a fourth straight week. Applications for benefits dropped 1,000 to 301,000, pushing claims down to the lowest level in four months.

The Dow Jones industrial average rose 0.88 percent to 12,378.61, following a 2.5 percent surge on Wednesday. The Nasdaq composite index advanced 1.9 percent to 2,360.92.

US stock index futures were also up, suggesting that rally could continue. Dow futures were up 37 points, or 0.3 percent, to 12,402, while Nasdaq futures were up 15.5 points, or 0.8 percent, to 1,852.5.