Awwal 28, 1432 H/March 3, 2011, SPA -- Asian stocks regained their composure Thursday after upbeat U.S. employment figures buoyed shares on Wall Street, surmounting fears of a disruption in the global production of crude, as AP reported. Still, oil prices hovered above $101 a barrel in Asia as fierce fighting between supporters and opponents of Libyan leader Moammar Gadhafi may have cut crude output in the OPEC nation more than previously estimated. The dollar was higher against the euro and steady against the yen. South Korea's Kospi Composite Index, which has dropped more than 4 percent since the beginning of the year, found its footing. The benchmark rose a hefty 2.2 percent to 1,970.66 after a government report said industrial output grew for the 19th straight month in January. Citing a government report, Yonhap news agency reported that production in mining and manufacturing rose 13.7 percent in January from the same month a year earlier, fueled mainly by autos and semiconductors. That boosted shares such as Kia Motors Corp., the country's second-biggest automaker, up 4.8 percent, and Hynix Superconductor, the world's second-largest maker of computer memory chips, up 3.3 percent. Japan's Nikkei 225 stock average rose 0.9 percent to 10,586.02 while Hong Kong's Hang Seng index was 1.1 percent higher to 23,298.26. Australia's S&P/ASX 200 index was up slightly to 4,806.40. Benchmarks in Singapore, Taiwan, and New Zealand also rose. Mainland China's Shanghai Composite Index was off 0.1 percent at 2,911.99. The mostly strong showing in Asian markets followed Wall Street gains spurred by a hiring report that surprised investors and gave hope the dark clouds over the job market may be clearing. Payroll processor ADP said U.S. private companies added 217,000 jobs in February, well above the 180,000 analysts had predicted. Analysts said that sets a positive tone for a U.S. government jobs report for February due out Friday. That is not to say, however, that concerns have eased over Libya and the recent escalation in oil prices _ up nearly $17 per barrel since the North African country's uprising began in mid-February. The rebellion has shut down oil production in many parts of the country. While Libya's oil fields produce only about 2 percent of global demand, experts say the disruption is putting pressure on world supplies. The oil disruption ranks as the eighth largest «supply shock» since 1950, Bank of America Merrill Lynch Global Research said in a report. «If it spreads to more oil exporters, especially the most vital Saudi Arabia, the potential impact on oil prices and general implications for world stability could be considerable. Even if it does not spread to the most vital oil exporters, there is still potential for supply disruptions in the Middle East due to the unrest,» the report said. On Wednesday, the Dow Jones industrial average rose 0.1 percent to close at 12,066.80, while the broader S&P 500 rose 0.2 percent to 1,308.44. Benchmark crude rose was down $1.26 to $100.96 in electronic trading on the New York Mercantile Exchange. The contract settled above $102 per barrel for the first time since September of 2008 on Wednesday as fighting escalated in Libya and petroleum demand grew in the U.S. In currencies, the dollar was little changed at 81.85 yen, while the euro rose to $1.3867 from $1.3863.
