Asian stocks up on Europe optimism, credit tightens

TOKYO - Asian shares rose on Thursday, as optimism over Europe's efforts to aid the euro zone's financial sector and US data suggesting the economy could avoid recession spurred short-covering and value-hunting.
An easing of risk aversion, after an intensive sell-off earlier this week on fears that Europe's debt problems could trigger a new global financial crisis, helped boost commodities and saw Asian credit markets tighten sharply.
"The US data supported a view that despite the recent deterioration in sentiment, the financial turmoil so far has not had a serious material damage to the economy, at least in the United States," said Hiroki Shimazu, senior market economist at SMBC Nikko Securities.
"Shares are being bought back as the recent sell-off had brought the market to levels reflecting a recession, and a sharp loss in corporate profits, which is now seen as overdone."
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