Asian Market Kick Off 2010 with Modest Gain

HONG KONG (AP) – Most Asian markets started off 2010 with moderate gains Monday as investors weighed mixed signs from the region's economies. European shares opened higher.

Major benchmarks in Europe gained a little less than 1 percent in early trade after Japan led Asia's advance. Crude oil prices punched through $80 a barrel, and the dollar slipped against the yen.

Investors were encouraged by a report showing China's manufacturing expanded at its fastest rate in 20 months in December, the latest sign the world's third-largest economy was continuing to grow strongly, aided by government stimulus measures.

But the mood was offset by worries about another recession in Singapore after the government said the local economy shrank last quarter for the first time since early 2009.

"We'll still see improvements in Asia in 2010, but a strong rebound isn't certain everywhere in the region because global demand may not pick up quickly," said Belle Liang, head of research at Core Pacific-Yamaichi International in Hong Kong.

As trading started in Europe, Britain's FTSE 100 gained 0.7 percent, Germany's DAX rose 0.8 percent and France's CAC-40 added 0.9 percent. Wall Street futures pointed to a stronger open on Wall Street Monday. Dow futures were up 59, or 0.6 percent, to 10,424 and S&P futures gained 7.7, or 0.7 percent, to 1,118.40.

In Tokyo, the Nikkei 225 stock average advanced 108.35 points, or 1 percent, to 10,654.79, with Japan Airlines surging 31 percent after the government said it was readying additional financing to the troubled airline.

South Korea's Kospi added 0.8 percent to 1,696.14. Australia's main index was up 0.1 percent and India's benchmark gained 0.5 percent.

Other markets slipped, with Hong Kong's Hang Seng off 0.2 percent at 21,823.28 and Shanghai's index down 1 percent to 3,243.76. Singapore's market lost 0.1 percent.

This week, investors will be watching for signs of improvement in a key US jobs report due out Friday. Economists generally expect the data to show the American economy shed more jobs in December. A stronger-than-expected report, however, might also rattle the market by prompting speculation the US central bank will raise interest rates sooner than thought.

Last week in the US, the Dow Jones industrial average closed out the year shedding 120.46, or 1.1 percent, to 10,428.05. For the year, the Dow rose 1,651.66, or 18.8 percent.

The broader Standard & Poor's 500 index, considered to be the market's best barometer, fell 11.32, or 1 percent, to 1,115.10. The S&P ended the year with a gain of 211.85, or 23.5 percent.
Oil prices rose in Asia, with benchmark crude for February delivery up $1.12 at $80.48

The dollar fell to 92.90 yen from 93 yen, and the euro was higher at $1.4325 from $1.4323.