Robust US retail sales lift Asian markets

ASIAN markets have risen in response to a strong showing on Wall Street after another round of upbeat data raised hopes for the US economy.

But dealers also remained hesitant before the release this week of Chinese third-quarter growth figures, as evidence accumulates of a slowdown in the world's second-biggest economy.

In Japan, telecoms giant Softbank surged by more than 10 per cent, clawing back some of its huge losses in the previous two sessions, after formally announcing it will buy US wireless provider Nextel Sprint for $US20 billion ($A19.59 billion).

Tokyo rose 1.44 per cent, or 123.38 points, to 8,701.31 on Tuesday, Sydney gained 0.18 per cent, or 8.1 points, to 4,491.5 and Seoul climbed 0.83 per cent, or 15.95 points, to 1,941.54.

Hong Kong advanced 0.28 per cent, or 58.82 points, to 21,207.07 and Shanghai was flat, giving up earlier gains to finish 0.11 points up at 2,098.81.

Trading started positively with the news out of Washington that retail sales, the main driver of the US economy, had unexpectedly risen 1.1 per cent in September.

The Commerce Department also revised up retail sales for July and August, and said that even excluding volatile data on vehicles and petrol, sales were still up 0.9 per cent last month.

Helping the mood on Wall Street, banking giant Citigroup reported an 88 per cent drop in third-quarter profit, not as bad as had been forecast.

The Dow gained 0.72 per cent, its biggest jump in more than a month, while the S&P 500 rose 0.81 per cent and the Nasdaq added 0.66 per cent.

On currency markets the euro was trading higher thanks to an improved appetite for risk.

In afternoon Asian trade it was buying $US1.3000, up from $US1.2950 late on Monday in New York, while it rose to 102.58 yen from 101.89 yen.

The US dollar stood at 78.90 yen, up slightly from 78.66 in New York.

The main focus of interest this week is on China, which will release on Thursday its growth figures for July-September, with many hoping for an improvement on recent data that has shown a marked slowdown.

Hopes were given a boost at the weekend by trade figures that showed China's exports surged almost 10 per cent last month.

Also on Thursday the European Union holds a summit, with a possible bailout for Spain on the agenda along with Greece's push to renegotiate its own rescue deal.

Reports indicate that Athens could be given more time to repay its huge debts, following comments from International Monetary Fund chief Christine Lagarde in Tokyo that an extra two years would be acceptable.

Softbank surged 10 per cent after the Japanese company confirmed it would take 70 per cent of Sprint Nextel, the number-three US mobile phone carrier, in the biggest-ever overseas acquisition by a Japanese firm.

The bounce followed a dive of more than 20 per cent over the previous two days after the firm said it was in talks over a buyout.

"It's official now," a senior strategist at a Japanese brokerage told Dow Jones Newswires.

"Some buyback is likely."

Oil prices fell with New York's main contract, light sweet crude for November delivery up 11 cents to $US91.96 a barrel, reversing earlier losses, while Brent North Sea crude for November climbed six US cents to $US115.86.

Gold was at $US1,741.32 at 0800 GMT (1900 AEDT) compared with $US1,745.05 late on Monday.

In other markets:

- Taipei rose 0.70 per cent, or 52.12 points, to 7,471.02.

Taiwan Semiconductor Manufacturing Co gained 1.27 per cent to Tw$87.5 while Hon Hai Precision was 0.11 per cent higher at Tw$87.6.

- Manila ended 0.31 per cent higher, adding 16.72 points to 5,399.94.

- Wellington gained 0.62 per cent, or 24.33 points, to 3,940.70.

Fletcher Building was up 2.17 per cent at NZ$7.52, Chorus gained 2.08 per cent to NZ$3.43 and Telecom put on 0.84 per cent to close at NZ$2.40.

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