Asian stocks post modest gains

European Central Bank's assurance on Spanish sovereign debt soothes investor concerns. Asian markets rebounded yesterday after a three-day sell-off as renewed fears over Eurozone debt were soothed with the European Central Bank (ECB) indicating it could step in if needed. However, ongoing jitters over the strength of the global economy kept a lid on sentiment while geopolitical concerns weighed amid North Korean plans for a rocket launch. Tokyo added 0.70 per cent, or 66.05 points, to 9,524.79 and Sydney added 0.81 per cent, or 34.4 points, to 4,280.5. Hong Kong was 0.93 per cent higher, adding 186.65 points to close at 20,327.32 while Shanghai gained 1.82 per cent, or 41.94 points, to 2,350.86. Seoul fell 0.39 per cent, or 7.78 points, to 1,986.63. The gains bring an end to recent selling pressure sparked by weak US jobs data last week, another set of poor Chinese econ-omic figures and fresh anxiety that Spain could be engulfed in a Greece-style debt crisis. A slump in Asia on Wednesday followed Wall Street and Europe after bond yields for Madrid shot to highs not seen since December on fears recent austerity measures could send it deeper into recession. But investors took heart from ECB board member Benoit Coeure, who suggested that markets were overestimating the extent of Spain's problems and did not rule out additional purchases of sovereign debt by the central bank. Spain's benchmark 10-year bond yields eased to 5.87 per cent from 5.94 per cent. Rebound on Wall Street Stocks in New York and Europe also bounced back on Wednesday. London's FTSE 100 index added 0.70 per cent, Frankfurt's DAX 30 rose 1.03 per cent and the Paris CAC 40 gained 0.62 per cent, while the Madrid Ibex 35 was 1.93 per cent higher. On Wall Street, the Dow closed up 0.70 per cent, the S&P 500 gained 0.74 per cent and the tech-heavy Nasdaq climbed 0.84 per cent. But Mitul Kotecha, strategist at Credit Agricole, warned that renewed debt worries "will not fade quickly while growth concerns have been reignited by last week's weaker than expected US jobs report". The euro edged back up on the news and bought $1.3122 in early Tokyo trade, from $1.3108 late Wednesday in New York while it also rose to 106.30 yen from 106.00 yen. The dollar was at 81.01 yen against 80.86 yen. On Wednesday in Asia, the euro was buying $1.3101 and 105.90 yen as traders shifted away from the higher risk unit. Regional markets were also nervous as North Korea prepared to fire a long-range rocket which it says will place a satellite in orbit for peaceful research purposes. North Korea threat Western critics see the launch as a thinly veiled ballistic missile test, and the United Nations has banned such tests by Pyongyang. Dealers are on edge as they await the launch, which is due to take place between April 12 and 16 to commemorate the centenary of the birth of North Korea's founding leader Kim Il-sung. From: Gulfnews