A.M. market numbers: October 26, 2009

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Asian markets mostly rose Monday, shrugging off a fall on Wall Street as South Korea's fastest growth in over seven years underscored the region's strengthening economic recovery. European shares were higher.

U.S. stocks faltered on Friday as investors dumped stocks and locked in profits after the glow of a week full of strong earnings reports faded.

But markets in Asia found new impetus after South Korea's central bank said economic growth accelerated to 2.9 per cent in the third quarter from the previous quarter _ the fastest growth since the first quarter of 2002.

Asia's fourth largest economy has been bolstered by government stimulus spending, low interest rates, and a falling won which boosts exports. Massive stimulus spending also played a part in China's economic growth accelerating in the third quarter, according to official figures last week.

``It's a full-fledged recovery in Korea,'' said David Cohen, chief of Asian forecasting at Action Economics in Singapore. He termed ``dramatic'' the economy's turnaround from the depths it hit late last year as the financial crisis unfolded.

In early European trade, Britain's FTSE 100 was up 0.4 per cent, Germany's DAX gained 0.9 per cent and France's CAC 40 advanced 0.6 per cent. Stock futures pointed to modest gains Friday on Wall Street. Dow futures added 39, or 0.4 per cent, to 9,9970,

In Asia, Japan's Nikkei 225 stock average rose 79.63, or 0.8 per cent, to 10,362.62 and South Korea's Kospi advanced 16.94, or 1 per cent, to 1,657.11. Hong Kong's market was closed for a holiday.

China's Shanghai benchmark gained 0.1 per cent in choppy trade as investors worried the government might temper its stimulus policies following the acceleration in third quarter growth. Taiwan's market rose 0.3 per cent, Singapore's index gained 0.2 per cent, and India's Sensex was up 0.6 per cent.

Australia bucked the trend with the S&P/ASX 200 index falling 0.6 per cent. In Sydney trade, coal miner Felix Resources Ltd. jumped 4 per cent after the government approved a takeover by China's Yanzhou Mining Co.

In the U.S. on Friday, the Dow fell 109.13, or 1.1 per cent, to 9,972.18. The S&P 500 index fell 13.31, or 1.2 per cent, to 1,079.60. The Nasdaq fell 10.82, or 0.5 per cent, to 2,154.47.

Oil prices slipped to near $80 a barrel in Asia as traders looked to this week's company earnings and U.S. economic data for evidence that justifies last week's jump to a 2009 high.

Benchmark crude for December delivery fell 45 cents to $80.85 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 69 cents a barrel to settle at $80.50 on Friday.

In currencies, the dollar fell to 91.85 yen from 92.13 yen. The euro rose to $1.5024 from $1.4998.

(The Canadian Press)

(10/26/09)