HONG KONG (Reuters) - Asian shares rose to a six-month high on Tuesday after Goldman Sachs' stronger-than-expected profit signaled the worst could be behind for U.S. banks, emboldening investors to chase after riskier assets.
Asian credit markets continued to improve, while the yen, a currency that benefits during fearful times, fell to a six-month low against the Australian dollar.
However, there are also plenty of doubts about how much longer the rally in Asian stock markets can be sustained given that some analysts believe the full brunt of the deep global recession has yet to be reflected.
Singapore eased monetary policy to effectively devalue its currency after posting on Tuesday its worst quarterly economic contraction ever, while a forecast for weaker demand for oil by the International Energy Agency sent crudes tumbling to below $50 a barrel.
Asian automaker shares slid on fears General Motors Corp (GM.N) was being pushed into bankruptcy by the U.S. government, helping send Japan's Nikkei average .N225 down 1.3 percent.
"If GM were to go bankrupt, that would raise questions about what would happen to Japanese auto-parts makers and Japanese automakers' dealer networks. The implications are broad," said Takahiko Murai, general manager of equities at Nozomi Securities.
"Although the financial sector seems to have seen the worst, a recovery for manufacturers has been slow and worries remain."
The MSCI index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS at one point hit its highest since mid-October, when shares were in the midst of a slide following the collapse of Lehman Brothers in the previous month.
The MSCI gauge was up 1.5 percent as of 0240 GMT, as major markets such as in Hong Kong .HSI and Australia .AXJO gained more than 2 percent each after a four-day weekend also seen in other Asian countries.
The gains came after Goldman Sachs Group Inc (GS.N) on Monday posted much higher-than-expected first-quarter profit as it took more trading risk, and said it plans a $5 billion common share sale to help pay back government funds.
The results followed Wells Fargo & Co's (WFC.N) surprising announcement last week that it expects to report a record first-quarter profit.
Though Goldman and Wells Fargo did not suffer as much as other U.S. financial firms, at least their announcements were seen providing some signs the U.S. banking industry is finally stabilizing after months of credit-related losses.
Markets in South Korea , Taiwan and Shanghai .SSEC were largely unchanged on the day.
Asian credit markets continued to improve, while the yen, a currency that benefits during fearful times, fell to a six-month low against the Australian dollar.
However, there are also plenty of doubts about how much longer the rally in Asian stock markets can be sustained given that some analysts believe the full brunt of the deep global recession has yet to be reflected.
Singapore eased monetary policy to effectively devalue its currency after posting on Tuesday its worst quarterly economic contraction ever, while a forecast for weaker demand for oil by the International Energy Agency sent crudes tumbling to below $50 a barrel.
Asian automaker shares slid on fears General Motors Corp (GM.N) was being pushed into bankruptcy by the U.S. government, helping send Japan's Nikkei average .N225 down 1.3 percent.
"If GM were to go bankrupt, that would raise questions about what would happen to Japanese auto-parts makers and Japanese automakers' dealer networks. The implications are broad," said Takahiko Murai, general manager of equities at Nozomi Securities.
"Although the financial sector seems to have seen the worst, a recovery for manufacturers has been slow and worries remain."
The MSCI index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS at one point hit its highest since mid-October, when shares were in the midst of a slide following the collapse of Lehman Brothers in the previous month.
The MSCI gauge was up 1.5 percent as of 0240 GMT, as major markets such as in Hong Kong .HSI and Australia .AXJO gained more than 2 percent each after a four-day weekend also seen in other Asian countries.
The gains came after Goldman Sachs Group Inc (GS.N) on Monday posted much higher-than-expected first-quarter profit as it took more trading risk, and said it plans a $5 billion common share sale to help pay back government funds.
The results followed Wells Fargo & Co's (WFC.N) surprising announcement last week that it expects to report a record first-quarter profit.
Though Goldman and Wells Fargo did not suffer as much as other U.S. financial firms, at least their announcements were seen providing some signs the U.S. banking industry is finally stabilizing after months of credit-related losses.
Markets in South Korea , Taiwan and Shanghai .SSEC were largely unchanged on the day.
