Asian stocks recovered yesterday after two days of losses as the World Bank upped its growth forecasts for China's economy and stronger commodities prices lifted the region's powerhouse resource companies.Every major market traded in the green, with Hong Kong, South Korean and Indian shares leading the way with gains of about 2 percent. Oil prices held above US$79 a barrel, while the dollar was little changed against the yen and the euro.
Investors' moods were helped by more optimism about China as the World Bank boosted its forecast for the world's third-largest economy from 7.2 percent to 8.4 percent, reflecting the country's enormous stimulus measures.
The strength of China's rebound also led the Washington-based bank to increase its growth forecast for developing East Asia by 1.3 percentage points to 6.7 percent.
Markets have become more choppy in recent days amid growing worries about the scope of the U.S. economic recovery and durability of this year's stock rally.
But some analysts say tremendous liquidity brought about by looser government policies around the world could continue to underpin stock prices.
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