Many Markets in Asia Climb Amid Hopes of a U.S. Recovery
SINGAPORE -- There was bad news almost everywhere they looked yesterday but investors chose instead to focus on the bright side in Asia, pushing many regional stock markets to healthy gains amid hopes of a U.S. recovery in the new year.</br></br>Those gains came on a day when the ripples from the demise of energy giant Enron Corp. continued to spread, Japan saw its sovereign credit rating downgraded to the same level as Italy by Moody's Investors Service Inc. and Argentina's troubles again raised the question of a contagion effect for emerging markets in Asia.</br></br>But it was evidence of renewed consumer spending in the U.S. that sent investors into the markets to buy technology stocks in places like Taiwan, where the local index rose 2.6% to a three-month high of 4766. A 2.9% rise in U.S. consumer spending in October, plus optimistic signs in construction spending data and a key purchasing managers' report, led some to see momentum building toward a U.S. recovery in the second quarter of next year.</br></br>Add the belief of many that Asian technology stocks have hit bottom and you have the elements for a sustained rally in regional markets, suggests Markus Rosgen, Asia strategist for ING Barings in Hong Kong.</br></br>"It's a real move up because there's a much higher likelihood of a recovery in the U.S. than there was three months ago," he said.