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HONG KONG, Sept 10 (Reuters) - Asian stocks rose on Thursday as investors continued to switch into riskier assets amid growing confidence the global economy is recovering, keeping the dollar on the defensive.
After hitting its weakest value in almost a year on Wednesday against a basket of currencies .DXY, the greenback was holding just above that level on Thursday, reflecting the shift out of less risky assets.
Oil prices CLc1 garned some support to rise above $72 a barrel from the weak dollar and firm equity markets but also from OPEC's agreement to maintain output levels. [ID:nL9714113]
Major European stock futures STXEc1 and U.S. equity futures SPc1 were up 0.5 percent, implying firmer opens.
European Central Bank Governing Council member Erkki Liikanen reinforced market sentiment that the world economy is improving, saying the euro zone economy had bottomed out. [ID:nLA587352]
South Korea signalled it could be one of the first countries in the world to raise interest rates if house prices jump much more. That knocked front-end Korean treasury bonds the most in three months.
"The final decision on when and how much to adjust its policy depends on each country's situation," Korean central bank governor Lee Seong-tae said, adding that G20 finance ministers' pledge last weekend to maintain growth-supporting policies was aimed mainly at soothing markets. [ID:nSEO269632]
South Korean shares were swept higher though by broader themes, rising 2.3 percent as Asian equities benefited from rising risk appetite.
Feeding into the recovery idea, shipping and shipbuilding companies Hanjin Shipping (000700.KS) and Hyundai Heavy Industries (009540.KS) surged 8.8 percent and 4.6 percent respectively after a rise in the Baltic Dry Index .BADI, a key freight indicator.
Japan's Nikkei index .N225 gained 2 percent even though machinery orders' data pointed to weak capital spending in the world's No. 2 economy.
The MSCI index of Asia Pacific stocks traded outside Japan .MIAPJ0000PUS was up 1.5 percent by mid-afternoon.