Asia stocks push towards 6-month highs

Asian shares rose on Friday, with South Korean stocks hitting a 6-month high after the country averted recession in the first quarter, as a Wall Street rally boosted risk demand around the region and dented the yen.

Many financial centres in the region were closed for a long weekend, making investors nervous that gains made now may not be sustained next week when many major US companies report quarterly earnings.

The Nikkei hit a three-month closing high for the second day in a row, though off the day's peak reached above the psychologically key 9,000 level, as banks tumbled after Sumitomo Mitsui Financial Group warned of a net loss for the financial year just ended, reviving fears for other megabanks.

Nikkei edged up 0.5 per cent to 8,964.11.

US shares rebounded after Wells Fargo said it expected to post a record quarterly profit of $3 billion, topping analyst expectations that sent the sector -- key to market sentiment -- sharply higher, with the S&P financial index soaring 15.51 per cent.

In Taiwan, this dovetailed with Cathay Financial rallying after it reversed a year-ago loss to report market-beating first quarter profits, helping shares hit a 6-month high.

Taiwan's main TAIEX share index gained 2 per cent to 5,781.96, while the Korea Composite Stock Price Index (KOSPI) rose 1.5 per cent to 1,336.04.

Seoul shares gained additional upward impetus with a positive growth estimate for the first quarter from South Korea's central bank.

"The market was helped by Wells Fargo's stronger than expected first quarter results estimate, fueling hopes of stabilisation in US financial markets," said Won Jong-hyuck, a market analyst at SK Securities in Seoul.

Global investors have been keenly awaiting US financial results, which move into high gear next week when Goldman Sachs, JP Morgan Chase and Citigroup are all set to report.

... contd.

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