Asia stocks up as Wall Street climbs on tech gains

Published on NewsOK Modified: April 11, 2013 at 12:02 am •  Published: April 11, 2013
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BANGKOK (AP) — Asian stock markets powered higher Thursday after a U.S. communications company posted a surprise jump in earnings that led to big gains in technology stocks and new highs on Wall Street.

Markets took additional encouragement from the release of minutes from the U.S. Federal Reserve's March meeting, which showed a majority of policymakers in favor of continuing the central bank's bond purchases to help boost the U.S. economy at least through the middle of the year.

Although some policymakers want to slow and eventually end the purchases before the end of 2013, some investors took that as a sign of confidence in the U.S. economy.

Hong Kong's Hang Seng rose 0.8 percent to 22,220.54. Japan's Nikkei 225 jumped 1.2 percent to 13,450.32, riding a wave of enthusiasm for the Bank of Japan's aggressive new approach to stimulating the world's third-largest economy out of a prolonged slump. Australia's S&P/ASX advanced 0.7 percent to 5,001.40.

South Korea's Kospi added 0.3 percent to 1,940.57, even though the Bank of Korea disappointed some analysts by keeping its key interest rate at 2.75 percent. Some were expecting the central bank would lower the rate to spark borrowing and help the economy.

Investors are also hoping that progress will be made in Washington toward a 2014 federal budget. President Barack Obama proposed a $3.8 trillion plan on Wednesday. Without a budget agreement, a huge array of government spending cuts — known as sequestration — will remain in place. Some economists believe the cuts are hurting growth and employment.

"That last jobs report shows potentially the sequestration is having an effect on employment, and that will have a big knock-on effect on the U.S. recovery," said Andrew Sullivan of Kim Eng Securities in Hong Kong. "Now that you've had a bad jobs report, people won't want to see another one."

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