Asian stocks jump on Bernanke comments, home sales

HONG KONG — Asian stock markets jumped Monday as upbeat comments from the Federal Reserve's chairman and signs the U.S. housing industry was healing strengthened confidence in a global recovery.

Tokyo shares led the way with a 3 percent gain as the region, taking cues after Wall Street closed Friday at its highest levels since November, staged a broad-based rebound from last week's heavy selling. Oil prices rose above $74 a barrel and the dollar climbed against the yen.

Investors poured into stocks after Fed Chairman Ben Bernanke said the prospects for a near-term recovery in the world's largest economy appeared to be good. Also boosting confidence was a better-than-expected rise in U.S. home sales last month that helped relieve some of the fears about American consumers that have held stock markets down lately.

There was evidence of economic renewal in Asia as well. Thailand's economy emerged from recession in the second quarter thanks to increased government spending and manufacturing resuming growth after steep declines.

"The numbers coming through continue to show economies are in better shape," said Song Seng Wun, economist at CIMB-GK research in Singapore. "But we could see more up and down in the markets as investors keep looking over their shoulder and asking themselves how much optimism is justified."

Japan's Nikkei 225 stock average gained 342.85 points, or 3.4 percent, to 10,581.05.

In China, the main Shanghai index was up for a third straight day, gaining 0.8 percent to 2,983.22, after its sharp falls last week helped trigger selling around the world. Hong Kong's Hang Seng added 1.6 percent to 20,536.64. link.....