Asian shares climb, following US, as fears of double-dip recession ease

Asian markets climb as double-dip fears ease

SINGAPORE — Stocks in Asia advanced Monday following solid gains in the U.S. as fears eased that the global economy could slip back into recession.

Most investors took heart after the U.S. Labor Department on Friday said private employers added 67,000 jobs in August, more than analysts expected. However, the jobless rate rose to 9.6 percent from 9.5 percent in July.

The private job gains bolstered optimism that the U.S. will maintain a slow but steady recovery from last year’s recession and avoid another economic contraction later this year.

“The renewed flight to safety we have witnessed over the past month is overdone and risks an equally large reversal when the worries over a double dip subside,” Rabobank said in a report.

“As the unexciting, steady and below-trend global recovery continues, it’s important not to confuse it with a double dip recession.”

Japan’s benchmark Nikkei 225 stock index climbed 2 percent, or 179.95 points, to 9,294.61 and South Korea’s Kospi rose 0.7 percent to 1,792.67.

Hong Kong’s Hang Seng index added 1.3 percent to 21,248.95. Australia’s S&P/ASX 200 was up 0.6 percent at 4,567.00. Markets in mainland China, Taiwan Indonesia and Singapore were also higher.

The Dow Jones industrial average jumped 1.2 percent, or 127.83 points, to close at 10,447.93 on Friday. The broader Standard & Poor’s 500 Index rose 1.3 percent, or 14.41 points, to 1,104.51.

Shares in the U.S. ended the week in the positive, the first time that has happened in a month. The early gains in September mark a stark turnaround from August trade, when shares fell on doubts about the global economic recovery.

In currencies, the dollar was nearly unchanged at 84.34 yen versus 84.27 yen on Friday. The euro was slightly higher at $1.2902 from $1.2895.

Benchmark oil for October delivery was down 24 cents at $74.36 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 42 cents to settle at $74.60 on Friday.