Asian stocks up after US earns; Europe shares down

Most Asian stock markets climbed Tuesday as a rash of better-than-expected earnings reports from major U.S. companies buttressed confidence in the world economy. European markets were lower.

A number of Asia's bourses were up nearly 1 percent, following gains in the U.S. after Wall Street touched new highs for 2009. Oil prices, meanwhile, rose above $80 a barrel for the first time since last year as the dollar continued to founder.

Helping lead the region higher were shares in technology companies after Apple Inc. and Texas Instruments Inc. released quarterly reports that topped most analyst forecasts. The results, along with earnings announcements from other large U.S. companies, helped alleviate worries for now that expectations for the world's largest economy were unreasonably high.

Asian markets, already among this year's best performers, have been pushing higher as the weakening dollar and immense liquidity lead foreign investors to channel funds into the region. Asia could see a "gold rush" toward the end of the year as investors who missed out on part of this year's run-up shift more money here, predicted Clive McDonnell, Singapore-based head of Asia strategy at BNP Paribas Securities.

"A lot of international funds have been underweight Asia and that has hurt them," McDonnell said. "As we head into the fourth quarter, the pressure is on to catch up."

As trading opened in Europe, benchmarks in Britain, Germany and France were off around 0.4 percent.

Earlier in Asia, Japan's Nikkei 225 index gained 100.33 points, or 1.0 percent, to 10,336.844, and Hong Kong's index rose 184.50, or 0.8 percent, to 22,384.96.

South Korea's main index added 0.6 percent to 1,659.15. Elsewhere, China's Shanghai's benchmark climbed 1.5 percent and Australia's index advanced 1.1 percent. However, markets in Indonesia, Singapore and Thailand fell modestly.

Asian tech stocks were mostly higher thanks partly to upbeat results from Apple, whose profits jumped 47 percent last quarter after enormous sales of iPhone and Mac computers.

Foxconn International Holdings Ltd., a leading contract mobile phone maker that manufactures the iPhone in mainland China, surged over 6 percent in Hong Kong. Meanwhile, major Japanese chipmaker Elpida Memory Inc. rose 3.6 percent after chipmaker Texas Instruments' stronger quarterly revenues and profit pointed to greater demand in the industry.

With Asia and other so-called emerging markets back in vogue this year, investors are on track to sink more money into these regions' equities markets than ever before.

Investment funds that focus on emerging market stocks had attracted nearly $52.6 billion by the end of last month, according to a survey by EPFR Global, a Boston-based firm that tracks global fund flows.

That's just under the record $54.3 billion that these investment funds received in 2007 and more than offsets the nearly $50 billion that was yanked from them last year during the financial crisis.

Overnight in New York, the Dow rose 96.28, or 1 percent, to 10,092.19. The broader S&P 500 index rose 10.23, or 0.9 percent, to 1,097.91. For both indexes, it was the highest close since Oct. 3 last year.

Wall Street was poised for a lackluster open, with Dow futures flat at 10,011.

Oil prices extended a two-week rally, with benchmark crude for November delivery hitting $80.05 a barrel before falling back to trade lower by 44 cents at $79.17. The contract rose $1.08 overnight.

The dollar fell to 90.29 yen from 90.62 yen. The euro was slightly lower at $1.4956 from $1.4973.