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STOCKS NEWS ASIA-Shares to rise on economic optimism

Published: 26 Mar 2009 17:40:51 PST

WELLINGTON, March 27 - Asian shares are set to rise on Friday, as hopes rise that the United States may have seen the worst of the economic news.

U.S. stocks rose for the second straight day, with stocks up to 3.8 percent higher, as investors saw signs of increasing consumer demand, pushing retailers and technology stocks higher.

Data showed a record $120.1 billion plunge in U.S. corporate profits in the fourth quarter, with the economy contracting 6.3 percent, its steepest decline in 27 years. [nN26447514]

The GDP data, while weak, beat expectations and some analysts viewed the quarter as likely to be the worst of the recession.

Both U.S. and European officials proposed strict new financial rules to stabilise the global economy, and curb the risk-taking that nearly wrecked the banking sector. [nSP460088]

Japanese shares are set to gain, with Nikkei futures last trading in Chicago <2NKc1> at 8,820 points, 110 points above the last traded level in Osaka <JNIc1>.

The U.S. dollar gained against the yen and euro, buoyed by rising equities and commodity prices.

Crude oil <CLc1> prices touched a four-month high above $54 on the firmer economic data, and metal prices also rose, signalling another positive start to Australia's resources-heavy stock market. HEADLINES: > Economic optimism boosts Wall Street [nN26515642] > N.Y. AG subpoenaes AIG on CDS contracts - sources [nN26515049] > US government seeks to tighten grip on Wall Street[nN26611989] > NZ economy in biggest contraction since 1992 [nSYD45402] > North Korea readies missile, makes new threat [nSEO371012] > Obama to release Afghan strategy review Friday [nN26490591] > US economy shrinks 6.3 pct, profits plunge in Q4 [nN26447514] > Obama says to help US automakers; GM workers leave [nSP494145] > Fed's Plosser: Economic outlook "pretty ugly" [nNYC000264] > Best Buy: Circuit City sales drove demand [nN26503849] > UK relief after strong gilt auction demand [nLQ359231]