Investors were growing more confident, but any downbeat news from U.S. companies reporting earnings in the coming weeks or about Asia's economies could quickly sour sentiment.
HONG KONG – Asian markets gained more ground Monday as Japan's new $150 billion stimulus plan and upbeat news about Chinese bank lending boosted hopes for recovery in the region's major economies.
Trade was thinner than normal with many investors still away for a public holiday and several markets closed. A stronger dollar combined with Tokyo's latest measures helped exporters like Sony and Mazda. Oil prices slipped below $52 a barrel.
Japan's newest effort, unveiled Friday, calls for 15 trillion yen ($150 billion) in government spending and aims to arrest a slide in the world's second-largest economy caused by an unprecedented drop in global demand. The country is struggling through its most painful recession since World War II.
News that banking lending surged last month reinforced a belief that Beijing's massive government spending and easier fiscal policies will lead consumers and businesses to sink more money into the economy and help China stage a quicker recovery. Loans in March surged to a record high of almost 1.9 trillion yuan (about $279 billion), Chinese media reported over the weekend.
Signs that economies and the financial system may stabilize in the coming months have led investors back to equities markets over the last month, though any could trip up the spring rally. This week, they'll be watching quarterly corporate results from major banks such as Citigroup and Goldman Sachs Group.
"We still have a number of hurdles that we're going to have to jump in the coming weeks, and this could keep the markets somewhat uneasy," said Thomas Lam, senior economist at the United Overseas Bank in Singapore. "But compared to say a month or two ago there is obviously a general sense that fear is receding in the market."
Japan's Nikkei 225 stock average added 11.25 points, or 0.1 percent, to 8,975.36, while South Korea's Kospi gained 0.6 percent to 1,343.69. In Shanghai, the main stock index climbed 2.7 percent to 2,508.89.
Taiwan and Singapore's stock measures were higher as well. Hong Kong, India, Thailand, New Zealand and Australia were closed for a public holiday Monday.
U.S. markets, closed Friday for a holiday, were set to reopen Monday. Wall Street futures wered down, suggesting a weak opening after stocks jumped Thursday. Dow futures fell 38 points, or 0.5 percent, to 7,979 and S&P500 futures lost 4.7 points, or 0.6 percent, to 847.90.
Oil prices fell below $52 a barrel Monday in Asia after the International Energy Agency said it expects global crude demand to drop this year amid the worst worldwide recession in decades.
Benchmark crude for May delivery fell 47 cents to $51.75 a barrel. The contract on Thursday rose $2.86 to settle at $52.24 a barrel. Trading was closed on Friday for the Good Friday holiday.
In currencies, the dollar gained to 100.44 yen from 100.23 yen. The euro was lower at $1.3171.