Asian Markets Rise on Commodities Gains

BEIJING — Asian markets mostly rose Tuesday on stronger commodity prices and overnight Wall Street gains driven by signs the US recession might be ending. European stocks fell in early trade.

Investors in Asia were encouraged after the Standard & Poor's 500 index—a key US market measure—broke through the 1,000-point level for the first time since November. A trade group said American manufacturing might improve next month for the first time since early 2008.

Japan's benchmark Nikkei 225 index rose 22.54, or 0.2 percent, to a 10-month high of 10,375.01 amid a smaller-than-expected quarterly loss from Toyota, the world's top automaker. Hong Kong's Hang Seng index slipped 10.83, or 0.1 percent, to 20,796.43 in back and forth trade while South Korea's Kospi rose 0.1 percent to 1,566.37.

"Investors are in an even more upbeat mood because of the very strong performance on Wall Street," said Dariusz Kowalczyk, chief investment strategist for SJS Markets in Hong Kong.

China's Shanghai Composite Index, which initially fell after regulators announced a review of bank capital adequacy as they try to cool a credit boom, closed up 8.85 points, or 0.3 percent, at 3,471.44.

"Investors are getting more and more certain the economy is reviving, and the buying sentiment is strong," said Mao Sheng, an analyst for Huaxi Securities in the western city of Chengdu.

Elsewhere, Australia's benchmark rose 1.1 percent while Singapore's market measure dropped 0.9 percent and Taiwan's Taiex fell 1.4 percent. As trading got underway in Europe, benchmarks in Britain, Germany and France were down 0.5 perent or more.

BHP Billiton Ltd., the world's biggest miner, was up 2 percent in Sydney after prices for copper, tin, aluminum and other metals gained Monday. Rival Rio Tinto Ltd. was up 4.3 percent. Commodities trading house Mitsubishi Corp. climbed 2.1 percent in Tokyo and Sumitomo Corp. jumped 3.7 percent.

"Our region is very sensitive to developments in commodities prices and commodities gained sharply," Kowalczyk said.

Toyota shares fell 1.3 percent in Tokyo. The automaker reported a smaller-than-expected 77.82 billion yen ($819 million) quarterly loss and expects less red ink for the full year even as it battles plunging sales and a strong yen.

Wall Street's big indexes all rose more than 1 percent on Monday, including the Dow Jones industrial average, which climbed 115 points. Better corporate earnings pushed the Dow Jones average up 725 points in July to its best month in nearly seven years.

The Institute for Supply Management, a trade group of purchasing executives, said US manufacturing should increase next month for the first time since January 2008 as industrial companies restock shelves.

The Commerce Department said US construction spending rose rather than fell in June as analysts had expected. The reports and rising commodity prices lifted energy and material stocks.

Ford Motor Co. said its sales rose 1.6 percent in July, its first monthly gain in nearly two years.

Oil prices stayed above $70 in Asia on expectations a global recovery will boost demand for crude. Benchmark crude for September delivery fell $1.13 to $70.45 per barrel in electronic trading on the New York Mercantile Exchange. On Monday, the contract rose 67 cents to $70.12.