2012.06.07 11:51:15 3rd UPDATE: Asian Shares Rise on ECB, Fed Signals

-- Asian markets cheered by hopes of stimulus -- Nikkei up 1.2%, Hang Seng Index 0.9% higher, S&P ASX 200 1.3% up -- Australian dollar higher on employment data (Updates prices, adds info on the Kospi) By Daniel Inman Asian shares rose Thursday on signs central bankers in Europe and the U.S. may take extra steps to aid the slowing worldwide economy, while the Australian dollar climbed on strong employment data. European Central Bank President Mario Draghi said markets are underestimating the commitment of political leaders to tackle the euro-zone crisis. Although the central bank failed to satisfy those expecting an interest-rate cut, comments by Mr. Draghi were taken by some investors to be a sign that the ECB is prepared to act when the time comes. He also said that "a few" members of the bank's rate-setting committee were in favor of a cut. Hopes for a policy response to the slowing worldwide economy were also boosted in the U.S., where Atlanta Fed president Dennis Lockhart said that "further monetary actions to support the recovery will certainly need to be considered" if domestic growth is no longer possible, and that the Fed's rate-setting committee needs to be ready to respond to economic instability. "The market is starting to price in additional policy response, and there is a greater expectation that something might happen before the Greek election," said Tim Schroeders, fund manager at Pengana Capital in Australia. Investors were looking ahead to Fed Chairman Ben Bernanke's testimony on the U.S. economic outlook later in the day. There was a broad increase in sentiment as investors moved into risk currencies, though some caution set in as the day progressed as Mr. Bernanke's testimony loomed. The euro eased to $1.2561 after gaining 1% overnight on Wednesday; while the dollar climbed slightly against the yen adding to gains overnight, at 79.28 late in the Asian day. Australian stocks received a boost after the country released its May employment data. Job creation soared as 38,900 jobs were created but the unemployment rate did edge higher. The local benchmark, the S&P ASX 200, welcomed the news, climbing 1.3% to 4108.60. The Australian dollar edged closer to parity with the greenback as the currency spiked at $0.9969 before falling back to $0.9946. Japan's Nikkei gained 1.2% to 8639.72, Hong Kong's Hang Seng Index was 0.9% higher at 18678.29, and the China Shanghai Composite dropped 0.7% to 2293.13. The Kospi gained 2.6% to 1847.95 as the South Korean index played catch-up after closing for a public holiday Wednesday. Foreign investors, who were net-sellers in 22 of the past 25 sessions, appeared to regain confidence in the market, buying net KRW361 billion in shares. The U.S. dollar also weakened against the South Korean won, falling as low as 1,168.00, the dollar's lowest level against the South Korean currency for two weeks, before climbing back to 1,171. Thursday was another good day for Japanese exporters, as the weakening yen encouraged investors to shift into companies that sell abroad and away from domestic-focused retailers. Shoe retailer ABC-Mart was 0.8% off, while Sony climbed 2% and construction machinery manufacturer Komatsu gained 2.1%. Taiwanese phone maker HTC dropped 6.9% after the company revised its second-quarter revenue guidance by 13% late Wednesday, citing poor sales in Europe and delayed shipments in the U.S. Write to Daniel Inman at daniel.inman@wsj.com TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAsia@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments. (END) Dow Jones Newswires June 07, 2012 05:51 ET (09:51 GMT)