Asian stocks mostly up on Chinese trade surge despite oil giant BP troubles

Asian stocks mostly up on Chinese trade surge

BANGKOK — Asian stock markets mostly advanced Thursday as strong Chinese trade figures gave investors the confidence to wade back into riskier assets despite reports that oil giant BP could end up in bankruptcy because of the disastrous spill off the southern U.S. coast.

Oil extended gains above $74 a barrel, with prices jumping on a fall in U.S. crude inventories and after Federal Reserve Chairman Ben Bernanke said the U.S. economic recovery remains on track. The dollar weakened against the yen, and the euro enjoyed a slight rebound against the greenback.

Better-than-expected trade data out of China helped buoy markets. Imports and exports both surged by nearly 50 percent in May over a year earlier in a positive sign for growth in the world’s third-largest economy.

“Chinese export data seemed quite encouraging, at least on the surface,” said Ben Kwong Man Bun, chief operating officer at KGI Asia Ltd. in Hong Kong. “The market is not as fearful as before.”

Japan’s benchmark Nikkei 225 stock average added 66.55 points, or 0.7 percent, to 9,505.39. The Nikkei held firm as the government said Japan’s economy — the world’s second-largest — grew a revised 5.0 percent in the January-March quarter, up from an earlier estimate of 4.9 percent growth.

South Korea’s Kospi index rose 14.80, or 0.9 percent, to 1,662.02 while Australia’s S&P/ASX 200 was up 1 percent at 4,427.7. Hong Kong’s Hang Seng rose 0.5 percent to 19,717.62. Benchmarks in Singapore, Taiwan and New Zealand also were up.

However, the Shanghai Composite Index retreated 0.4 percent to 2,572.93, with some investors anticipating negative news when China releases its inflation data Friday, said Castor Pang, director of research at Cinda International in Hong Kong. Figures are expected to show a 3 percent increase in the consumer price index, and traders are worried that Beijing may respond by clamping down further on credit.

“China’s stock market is not performing very well even though export data is excellent,” Pang said. “Investors are still cautious.”

In New York on Wednesday, the Dow Jones industrial average fell 40.73 points, or 0.4 percent, to 9,899.25. While the Dow gained more than 125 points at midday, it slumped later as investors sold energy stocks on fears that the U.S. oil spill disaster could force BP to seek bankruptcy protection. Analysts also said the company might have trouble paying its dividend.

The drop came a day after the Dow climbed 123 points on easing concerns that the economy would fall back into recession. The confidence extended into the first part of trading Wednesday after Bernanke said debt problems in Europe might only amount to a “modest” drag on the U.S. economy if the financial markets can halt their slide.

In currencies, the dollar declined to 91.17 yen in Tokyo on Thursday from 91.26 yen in New York late Wednesday. The euro rose to $1.2036 from $1.1980.

Benchmark crude for July delivery was up 21 cents at $74.59 a barrel in electronic trading on the New York Mercantile Exchange. It rose $2.39 to settle at $74.38 a barrel on Wednesday.