Asian Shares Rise On Lower Oil Prices and Increased Investor Confidence

July 30, 2008 9:03 a.m. EST

Tokyo, Japan (AHN) - Asian markets gained Wednesday as lower oil prices and greater confidence in the stability of the financial sector prompted a rebound from Tuesday's losses.

In Tokyo, the Nikkei 225 rose 1.6 percent to 13,367 erasing Tuesday's 1.5 percent slide. The news came as lower gas prices and a stronger dollar boosted stocks. Nissan Motor added 3 percent and Japan Airlines advanced 1.4 percent.

The government said industrial production fell 2 percent in June as fewer cars rolled off assembly lines and a lower demand of consumer electronics prompted a slowdown in the need for semiconductor production.

In other markets, Hong Kong's Hang Seng rose 1.9 percent to 22,690, snapping a four-day downward track. As elsewhere, automakers and banks benefited. Hong Kong's HSBC Holdings rose 1.9 percent.

China's Shanghai Composite slipped a half-point to 2,836 after hitting 2,894 earlier in the day. Bucking the index, Air China added 1.2 percent.

In Australia, the S&P/ASX 200 increased 1.8 percent to 4,936 as Qantus Airways rose 2.7 percent with both the Commonwealth Bank of Australia and National Australia Bank adding 2.7 percent.