Asian stock markets were mostly higher Thursday, with Japan lifted by accelerating export growth and sentiment elsewhere in Asia improving despite expectations that China was gearing up for another interest rate hike to dampen runaway economic growth, as AP reported. Oil prices held above $87 a barrel after big gains the previous day when President Barack Obama outlined plans to boost the U.S. economy. In currencies, the dollar was lower against the yen and the euro. Japan's Nikkei 225 stock average climbed 0.7 percent to 10,476.31 after the Finance Ministry announced that export growth had accelerated for the second straight month in December, indicating a revival of overseas demand. Exports from the world's third-largest economy rose 13 percent from a year earlier. North American demand was especially strong, indicating an improvement in the U.S. economy. South Korea's Kospi was 0.2 percent higher to 2,114.85. Hong Kong's Hang Seng index gained 0.3 percent to 23,915.39. Markets in Australian, New Zealand and India were down. The Shanghai Composite Index climbed 1.1 percent to 2,738.14 and the Shenzhen Composite Index for China's smaller, second market rose 1.2 percent to 1,168.49. Investors have been nervously anticipating China's likely next step to tamp down inflation _ namely a hike in interest rates ahead of the Lunar New Year holiday next week. China's leaders, mindful of the political turmoil brought on by previous bouts of inflation, have declared curbing price increases a top priority. They have hiked interest rates twice in the past four months and repeatedly tightened investment curbs to keep inflation from spreading throughout the economy. Expectations of more hikes have kept Asian markets largely in check. But Yougesh Khatri, senior economist covering Southeast Asia for Nomura in Singapore, said recent measures by the Chinese government to cool the property market, including restrictions on mortgages and residential purchases, «might ease expectations as to how rapidly rates will be increased.» For example, China's commercial capital of Shanghai announced last week it plans to impose a limited property tax to help curb surging prices. The city has also tightened restrictions, limiting families to buying just one new home, freezing mortgages on third-home purchases and raising required downpayments and interest rates charged for second homes. The gains in Asia came after the Dow Jones industrial average briefly broke through the 12,000 mark on Wednesday, with investors cheering President Barack Obama's plan to close corporate tax loopholes and use the additional revenue to lower tax rates on businesses for the first time in 25 years. The Dow slipped lower in afternoon trading to close at 11,985.44 Wednesday, up 0.1 percent from a day earlier. In currencies, the dollar fell to 82.15 yen in Tokyo from 82.19 yen in New York late Wednesday. The euro rose to $1.3701 from $1.3687 in late trading Wednesday. Benchmark crude for March delivery was down 9 cents at $87.24 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.14 to settle at $87.33 a barrel on Wednesday.
