BANGKOK – Asian stock markets rebounded Wednesday as traders looked past bleak U.S. jobs data and Europe’s debt crisis to scoop up bargains following a steep sell-off.

Oil prices lingered above $86 per barrel. The dollar fell against the euro and the yen.

Japan’s Nikkei 225 index, which on Tuesday fell to its lowest level since April 2009, rose 1.7 percent to 8,734.42. A slightly softer yen helped Japan’s powerhouse export sector recover from the beating it took earlier this week.

Mazda Motor Corp. jumped 3.4 percent, and Sony Corp. gained 2.7 percent. Toyota Motor Corp. rose 2.2 percent.

Markets received further good news when the Australian government said the economy expanded 1.2 percent in the quarter through June, rebounding from a 0.9 percent contraction in the previous three months. Australia’s S&P/ASX 200 gained 2.3 percent at 4,168.10.

South Korea’s Kospi clawed back the prior day’s losses to rise 2.7 percent at 1,814.60. Blue chip high-tech stocks were among those leading the way. Hynix Semiconductor, the world’s second-largest memory chip maker, soared 7.4 percent. LG Electronics Inc., which ranks No. 2 globally in flat screen televisions, was 8.1 percent higher.

Peter Lai, director of DBS Vickers in Hong Kong, said investors were bargain-hunting for deals in commodities, the retail sector and industries favored by the Chinese government, like infrastructure.

Retailing shares in Asia also are attractive, Lai said, because governments in the region have been trying to persuade their traditionally thrifty populations to spend rather than save. GOME Electrical Appliance Holdings, China’s largest appliances retailer, jumped 4.4 percent.

“Asians traditionally are big savers. This is why Asian countries have been encouraging people to convert part of their saving power into spending power,” he said.

Gold prices, meanwhile, backed off recent all-time highs, causing gold shares to decline. Newcrest Mining Ltd., Australia’s top gold miner, lost 0.8 percent.

A wave of negative sentiment slammed global stock markets last Friday, when a government report said the U.S. economy failed to add any new jobs in August. It was the worst reading on jobs since September 2010.

But signs of growth in the U.S. service sector helped tame concerns about another U.S. recession. The Institute for Supply Management said Tuesday that the service sector grew more than analysts had expected in August.

Growth in that part of the economy, which employs nearly 90 percent of America’s work force, fell the three previous months.

“The better than expected reading for the August US non-manufacturing ISM index helped to provide some relief to risk assets but there is still likely to plenty of nervousness in the days ahead, with any improvement in risk appetite likely to prove fragile,” Credit Agricole CIB said in a research note.

The Dow Jones industrial average fell 0.9 percent to 11,139.30. The Standard and Poor’s 500 index dropped 0.7 percent to 1,165.24. The Nasdaq composite fell 0.2 percent to 2,473.83.

Separately on Tuesday, the Swiss franc dropped sharply after the country’s central bank pegged it against the euro in an attempt to rein in the export-sapping appreciation of the currency.

The franc has been hugely in demand in recent weeks due to its widely perceived status as a safe haven during times of market volatility.

The dollar fell to 77.16 yen from 77.67 yen in late trading Tuesday in New York. The euro rose to $1.4044 from $1.3991 after falling below $1.40 for the first time since July 13.

In commodities trading, benchmark oil for October delivery rose 40 cents to $86.42 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 43 cents to end at $86.02 per barrel on Tuesday on the Nymex.

In London, Brent crude for October delivery rose 41 cents to $113.30.

(This version CORRECTS currency movements.)

BANGKOK – World stock markets rose Wednesday as investors put aside concerns over flagging consumer and business confidence in developed economies to hunt for bargains.

Oil prices recovered losses, rising to near $89 a barrel. The dollar was higher against the euro but slipped against the yen.

European shares rose in early trading. Britain’s FTSE 100 was 0.7 percent higher at 5,307.08 and Germany’s DAX gained 1.3 percent to 5,714.59. In Paris, the CAC-40 rose 1.4 percent to 3,202.49.

Ahead of the opening bell on Wall Street, Dow Jones industrial futures were 0.7 percent higher at 11,572 and S&P 500 futures rose 0.8 percent to 1,214.90.

Asian markets made broad-based advances.

Japan’s benchmark Nikkei 225 logged a fifth day of gains to close narrowly up at 8,955.20 after spending part of the day in negative territory.

Hong Kong’s Hang Seng jumped 1.6 percent to 20,534.85 and South Korea’s Kospi gained 2 percent at 1,880.11. Australia’s S&P/ASX 200 rose 0.6 percent at 4,296.50. Benchmarks in the Philippines, Taiwan and Singapore also rose.

Share prices have been pummeled in recent months, but that has presented an opportunity for investors interested in bargains, analysts said.

“The market has been down for quite some time this summer, ever since middle of April,” said Hong Kong-based analyst Francis Lun. “The market is poised for a rebound.”

Sentiment in Japan was dampened after growth in industrial production fell far short of forecasts in July. The Ministry of Economy, Trade and Industry said industrial production edged up 0.6 percent from the previous month — falling short of its projected 2.2 percent rise.

The persistently strong yen continued to place a drag on Japan’s powerhouse export sector, particularly consumer electronics. Panasonic Corp. lost 1.6 percent, Sony Corp. fell 1.8 percent and Toshiba Corp. dropped 2.4 percent. Copier maker Ricoh Co. lost 0.4 percent.

Separately, South Korea’s LG Electronics jumped 4.1 percent and car maker Hyundai Motor rose 3.3 percent. But gains were held in check elsewhere after South Korea reported that industrial output expanded 3.8 percent last month from a year earlier, the slowest pace since September 2010, Yonhap News agency said.

Mainland Chinese shares were mixed, with the benchmark Shanghai Composite Index gaining marginally to 2,567.34 after dipping almost 1 percent earlier in the day. The Shenzhen Composite Index lost 0.4 percent to 1,143.34. Shares in cement and travel-related companies advanced while shares in construction, aviation and chemicals weakened.

“Rumors say Chinese banks will have to set aside an additional 950 billion yuan ($149 billion) as reserves, which will cause a funds shortage. As funds in the market switch between different shares, it is unstable,” said Liu Kan, an analyst at Guoyuan Securities, based in Shanghai.

Chinese automaker BYD lost 3.7 percent after acknowledging reports it is planning layoffs in its sales teams, while Wuliangye Yibin Co., a famous fine spirits producer, gained 2.4 percent in expectation of stronger demand during the upcoming mid-autumn festival.

In Europe on Tuesday, stocks were hurt by a report showing consumer and business sentiment in the 17 countries that use the euro common currency was souring due to uncertainties about the future of the global economic recovery and the region’s festering debt crisis.

Wall Street, though, traded higher despite a survey showing a slump in consumer confidence in the U.S., as investors took the opportunity to buy into what they considered cheap stocks.

The Dow Jones industrial average rose 0.2 percent to close at 11,559.95. The Standard & Poor’s 500 rose 0.2 percent to 1,212.92. The Nasdaq composite index rose 0.6 percent to 2,576.11.

In currencies, the euro dropped to $1.4432 from $1.4447 late Tuesday in New York. The dollar fell to 76.57 yen from 76.72 yen.

Benchmark oil for October delivery was up 11 cents to $88.99 in electronic trading on the New York Mercantile Exchange. Crude rose $1.63 to settle at $88.90 on Tuesday.

In London, Brent crude for October delivery was up 19 cents at $114.21 on the ICE Futures exchange.

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AP researcher Fu Ting contributed from Shanghai.

BANGKOK – Asian shares were mostly higher Wednesday as investors put aside concerns over flagging consumer and business confidence in developed economies to hunt for bargains after gains on Wall Street.

Oil prices edged lower toward $88 a barrel after the drop in sentiment suggested growth was likely to slow further in coming months.

After four days of gains, Japan’s benchmark Nikkei 225 swung between positive and negative territory. It was up less than 0.1 percent to 8,958.52. Australia’s S&P/ASX 200 rose 0.1 percent at 4,275.20.

Hong Kong’s Hang Seng added 0.4 percent to 20,274.34 and South Korea’s Kospi index was 1.4 percent higher at 1,870.16.

Benchmarks in the Philippines, Taiwan and Singapore also rose. Shares were lower in mainland China and New Zealand.

Share prices have been pummeled in recent months, but that has presented an opportunity for investors interested in bargains, analysts said.

“The market has been down for quite some time this summer, ever since middle of April,” said Hong Kong-based analyst Francis Lun. “The market is poised for a rebound.”

Sentiment in Japan was dampened after growth in industrial production fell far short of forecasts in July. The Ministry of Economy, Trade and Industry said industrial production edged up 0.6 percent from the previous month — falling short of its projected 2.2 percent rise.

Still, the increase — fueled by improvements in transport equipment and general machinery — underscored the resilience of Japanese industrial sector as it battles back from a devastating earthquake and tsunami in March. Komatsu Ltd., a global leader in equipment making, rose 1 percent.

But the persistently strong yen continued to place a drag on Japan’s powerhouse export sector, particularly consumer electronics. Panasonic Corp. lost 2 percent, Sony Corp. fell 1.5 percent and Toshiba Corp. dropped 2.4 percent. Copier maker Ricoh Co. lost 0.3 percent.

Separately, South Korea’s LG Electronics jumped 3.6 percent and car maker Hyundai Motor rose 2.8 percent. But gains were held in check elsewhere after South Korea reported that industrial output expanded 3.8 percent last month from a year earlier, the slowest pace since September 2010, Yonhap News agency said.

In Europe on Tuesday, stocks were hurt by a report showing consumer and business sentiment in the 17 countries that use the euro common currency was souring due to uncertainties about the future of the global economic recovery and the region’s festering debt crisis.

Wall Street, though, traded higher despite a survey showing a slump in consumer confidence in the U.S., as investors took the opportunity to buy into what they considered cheap stocks.

The Dow Jones industrial average rose 0.2 percent to close at 11,559.95. The Standard & Poor’s 500 rose 0.2 percent to 1,212.92. The Nasdaq composite index rose 0.6 percent to 2,576.11.

In currencies, the euro dropped to $1.4431 from $1.4447 late Tuesday in New York. The dollar was lower against Japan’s currency, at 76.54 yen from 76.72 yen.

Benchmark oil for October delivery was down 43 cents to $88.47 in electronic trading on the New York Mercantile Exchange. Crude rose $1.63 to settle at $88.90 on Tuesday.

In London, Brent crude for October delivery was up 3 cents at $114.05 on the ICE Futures exchange.

BOSTON (Reuters) – Top hedge fund managers went bargain hunting in the oil patch in the second quarter, buying shares whose prices had fallen because of BP’s Gulf of Mexico well disaster and lower oil prices.

Top managers including billionaire Carl Icahn, Eric Mindich and Dinakar Singh, whose stock picks are closely watched in investment circles, added energy stocks to their holdings as billions of gallons of oil gushed into the Gulf, according to quarterly securities reports filed on Monday.

Others buying energy shares included David Einhorn, former Fidelity Investments star Jeff Vinik and the $22 billion Boston-based fund Adage Capital.

Fund managers must say what U.S. listed equities they owned within 45 days after the quarter ends.

While energy stocks ranked among the worst performers during a quarter that also featured a still unexplained flash-crash and fresh fears that the U.S. economy would recover more slowly, hedge fund managers staked out the sector much like they had with financial firms earlier in the year.

After building his energy holdings slowly at the beginning of the year, Icahn picked up the pace in April, May and June by committing nearly $1 billion to the sector after the Deepwater Horizon drilling platform at BP’s (BP.L) Macondo well exploded and sank in the Gulf of Mexico.

The purchases included 2 million shares of oil and gas producer Anadarko Petroleum (APC.N) and 240,000 shares of offshore drilling specialist Ensco PLC’s (ESV.N) sponsored American Depository Receipts, according to documents submitted to the Securities and Exchange Commission on Monday.

Icahn also added 2.4 million shares of NRG Energy (NRG.N), a big power utility.

Dinakar Singh’s hedge fund TPG-Axon bought 1.4 million shares of Anadarko, while adding 2.1 million shares of drilling services specialist Baker Hughes (BHI.N) and 3.5 million shares of Halliburton (HAL.N), another major oil services player.

Mindich, whose skills at Goldman Sachs helped him raise a record $3 billion when he started his fund in 2004, bought 1.3 million shares of BP and call options to buy 1 million more.

Mindich’s $13 billion Eton Park Capital also bought 168,000 shares of Baker Hughes, 165,000 shares of Diamond Offshore Drilling (DO.N), 300,000 shares of Forest Oil (FST.N), 256,000 shares of Marathon Oil (MRO.N), 420,000 shares of Plains Exploration & Production (PXP.N) and 237,000 shares of Suncor Energy (SU.TO).

Vinik added 3.1 million shares of Exxon Mobil, 11,000 shares of Ensco and 2 million shares of the Oil Services HOLDRS Trust (OIH.P), which owns a basket of 15 stocks in the sector.

Einhorn’s Greenlight Capital bought 7.4 million shares of Ensco, just over 5 percent of the company’s shares. Ensco “was not involved in the horrible accident, which should not materially impact the company’s long-term potential,” Einhorn wrote in a letter to his investors last month.

Adage, run by former managers from Harvard University’s endowment, owned 3.4 million shares of BP at the end of the quarter, up from 124,000 three months earlier. The firm added to existing positions in Anadarko, Ensco and Halliburton.

The bets mark a dramatic change in their portfolios, coming as many other investors pulled their money out. BP’s stock price fell over weeks until its value had fallen by half.

Even prominent mutual fund manager Fidelity Investments, where millions of Americans hold their college savings and retirement accounts, appears to have joined the trend.

Fidelity managers added 24.2 million shares of Exxon, leaving it with 74.9 million shares, making it the fifth biggest holding for Fidelity. It also added 10.9 million shares of BP.

The forms managers filed on Monday include only U.S.-listed equity securities and related derivatives. Bonds, other securities and short positions are typically not disclosed. Managers may also omit U.S.-listed equities under certain circumstances or file some holdings on confidential filings.

(Reporting by Svea Herbst-Bayliss and Aaron Pressman. Additional reporting by Emily Chasan in New York and Ross Kerber in Boston. Editing by Robert MacMillan)