HONG KONG - ASIAN stocks climbed on Friday, with exporters helping to put shares on track for a second week of gains, after US economic growth figures quelled fears of a further pullback in demand.

Oil prices also supported equity markets, having fallen 6 per cent from all-time highs hit last week to around US$126 (S$172) a barrel, on uncertainty about global demand and the stronger US dollar, which is near a three-month high against the yen.

Stocks with good brand recognition in overseas markets like Canon, Sony and Toyota Motor were among the biggest boosts to Japan's Nikkei share average, which rose 0.8 per cent in early trade.

Dell, the second-largest personal computer maker, reported earnings last night after the market closed that beat expectations, boosting hopes for Asian companies like Hong Kong-listed Lenovo.

MSCI's pan-Asian equities index edged up 0.6 per cent, led by Japan. However, the index was down 1 per cent in May after a steep rebound in April.

Oil prices have risen by a third since 2008 began, sparking fears that energy costs will push down consumer spending and business investment and cause inflation to spiral higher.

Benchmark 10-year yields in Europe, Japan and the United States on Wednesday rose to fresh 2008 highs as investors priced out expectations of looser monetary policy this year given consumer price pressures that don't appear to be easing any time soon.

Indeed, high food prices which have largely contributed to global consternation over inflation are expected to remain so in the next decade despite a recent easing, the United Nations food agency said.

In the next 10 years, beef and pork prices are expected to rise 20 per cent compared with the previous decade. Rice is seen up 30 per cent, while vegetable oils are forecast to surge 80 per cent or more.

The dollar held steady near a three-month high against the yen, in the wake of an upward revision to US gross domestic product growth figures that bolstered expectations for the Federal Reserve to raise interest rates this year. The dollar was up 0.1 per cent at 105.66 yen. The euro was flat at US$1.5515.

KUALA LUMPUR

The Kuala Lumpur Composite Index (KLCI) rose 2.12 points, or 0.17 per cent, at 1,263.94 at the opening.

HONG KONG

Hong Kong stocks rose 0.26 per cent on Friday, led by energy plays on lower oil prices and after stronger-than-expected US economic growth data eased worries about a recession.

The benchmark Hang Seng Index was set to open up 64.38 points at 24,448.37, helped by a near 3.1 per cent rise in Sinopec, Asia's top refiner.

The China Enterprises Index of Hong Kong-listed mainland companies, or H shares, rose 0.69 per cent to 13,604.42.

SHANGHAI

At 10.55am Singapore time, Chinese share prices were higher on Friday morning trade led by airlines and oil refiners as a sharp drop in world crude prices eased worries over rising fuel costs, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, added 30.55 points or 0.90 per cent to 3,431.99.The Shanghai A-share index was up 32.12 points or 0.90 per cent to 3,601.00 points, while the Shenzhen A-share index gained 0.63 points or 0.06 per cent to 1,085.77.

Dealers said sentiment was lifted after light sweet crude in New York fell a hefty US$4.41 dollars to close at US$126.62 per barrel overnight, the lowest close in the past two weeks.

TOKYO

Japanese share prices rose 0.82 per cent in morning trade on Friday as investors cheered gains on Wall Street and the weaker yen, which is positive for exporters' earnings, dealers said.

The benchmark Nikkei index gained 115.88 points to 14,240.35 by the lunch break. The broader Topix index of all first-section shares added 15.44 points or 1.12 per cent to 1,396.07.. -- REUTERS, AFP