Asian markets mixed as caution tempers hope

By The Associated Press

TOKYO - Asian markets flitted in and out of positive territory Tuesday, buoyed by hopes for stimulus measures by the world's biggest economies but unable to shake off pervasive concerns about the global outlook.

Japan's benchmark Nikkei 225 stock average climbed 39.45 points, or 0.5 per cent, to 8,368.50, while Hong Kong's Hang Seng index fell 0.8 per cent to 14,919.20.

Key indices in New Zealand, Taiwan, Singapore and the Philippines joined Tokyo's advance. But markets in mainland China, South Korea and Australia turned lower.

Investors are trying to be optimistic about the various measures that have been announced in China and the U.S., said Song Seng Wun, head of research at CIMB Securities in Singapore.

"The markets are taking a view that the depression scenario can be avoided and a recession can be cushioned," Song said. "But we may not be able to say this is a turning point yet."

On Wall Street on Monday, the Dow Jones industrials rose nearly 3 per cent to 8,934.18, their highest level in a month following President-elect Barack Obama's promise to increase infrastructure spending to lift the economy. His plan calls for the largest U.S. public works program since the creation of the interstate highway system a half-century ago.

Obama's pledge has boosted shares of commodities companies in anticipation of new demand. They extended their gains Tuesday, with Australian mining company BHP Billiton Ltd. up 4.2 per cent.

Relief may also be in sight for Detroit's automakers. The White House said Monday that it was "very likely" to strike an agreement with Congress on funnelling money to General Motors Corp., Chrysler LLC and Ford Motor Co.

The optimism bolstered stocks in Japan, where investors pay close attention to signals coming from the vital U.S. market, despite a government report showing that Japan's economy fell into a deeper recession than initially estimated.

Japan's cabinet office said that the world's second-largest economy shrank at an annual pace of 1.8 per cent in the July-September period, compared with its original estimate of a 0.4 per cent contraction.