World markets rise after better US economic data - Caution

Despite signs of a turnaround, the economy's momentum may be difficult to sustain in coming quarters, analysts said. Tim Schroeders, a fund manager at Pengana Capital Ltd. in Melbourne, says Asian markets could see a 10 percent decline later this year.

"I think the markets have run ahead of the economy for the time being," said Schroeders, who helps manage about $1 billion in assets. "We're probably going to see a slowdown in the fourth quarter this year, which will be a fairly dramatic headwind to overcome."


Hong Kong's Hang Seng was up 536.55 points, or 2.6 percent, at 21,402.92. In Korea, the Kospi added 1.8 percent to 1,683.33.
Most other markets gained as well: India's Sensex climbed 0.8 percent, Taiwan's benchmark rose 1.3 percent and Australia's index jumped 2.4 percent.
Only China's market, which is relatively closed to foreign investors and often moves out of step with global stocks, was lower. The Shanghai benchmark fell 1.1 percent to 2,999.71.

On Wall Street, the Dow rose 56.61, or 0.6 percent, to 9,683.41, its highest close since Oct. 6, when it finished at 9,956.
The S&P 500 index rose 3.29, or 0.3 percent, to 1,052.63, while the Nasdaq composite index rose 10.86, or 0.5 percent, to 2,102.64. All three indicators are at their highest levels for 2009.

Stock futures pointed to more gains Wednesday on Wall Street. Dow futures were up 38, or 0.4 percent, to 9,700 and S&P futures gained 2.4, or 0.2 percent, to 1,050.30.
Oil prices hung below $71, with benchmark crude for October delivery off 28 cents to $70.65 a barrel. The contract rose $2.07 overnight.

The dollar dropped to 90.34 yen from 91.03 yen. The euro rose to $1.4691 from $1.4656.