Asia stocks rise as bargains sought

Investors sorted through the debris of a 6 consecutive month of falls for global equity market as Asian stocks slightly went up. Investors hoped to look for some bargains as the 2008 ends.

Regional shares fastened on a sixth day of gains, though positivenss was in short supply with declining economic prospects for China and Japan as well as boiling political risks in India, where riots happened  in Mumbai, and Thailand, where the prime minister has declared a state of emergency.

The yield on the benchmark 10-year U.S. Treasury note was near its lowest in 50 years, below 3 percent, with bond dealers expecting a deep and lasting U.S. recession. The cost of insurance against a U.S. government debt default, an unthinkable event, shot to record highs on Thursday, as concern grows about the scale of programs to prop up the financial system.

Oil prices plunged toward $53 a barrel, ahead of a meeting of OPEC ministers in Cairo to discuss the possibility of more supply cuts as global recession decreases energy demand.

"On a range of measures, there is undoubted value to be found in many of the worlds equity markets," said Sarah Arkle, chief investment officer with Threadneedle Asset Management.

"However, with economic and earnings expectations in a state of flux, there are also significant risks and translating valuation metrics into regional preferences is highly dependent on earnings and dividend inputs," Arkle said in a note on the outlook for 2009.

Asian stocks outside Japan climbed up

Japan's Nikkei share average rose 0.6 percent with some stocks in the technology sector, such as Kyocera Corp, making the index higher for a second day.

However, shares of Panasonic Corp, the world's largest plasma TV maker, dropped 11 percent after it cut its net profit forecast for the current business year by 90 percent.

The MSCI index of Asia Pacific stocks outside of Japan climbed 1.3 percent, putting in on track for a sixth day of gains. The index was still attached in a sharp downward trend that has knocked it down about 57 percent so far this year.

Hong Kong's Hang Seng index rose 2 percent, led by China Mobile, whose recent gains and been lower than the broader market.