Asian markets gain

Bangkok - Asian stock markets mostly rose Tuesday after the US services industry, a mainstay of the world's No. 1 economy, showed its first growth in a year and Australia's central bank raised interest rates.

Gains in Japan were tempered as the dollar weakened against the yen, weighing on exporter stocks. Oil prices inched higher, taking a cue from stronger stock markets.

Australia's benchmark index stayed in the green after the country's central bank unexpectedly raised its key interest rate - the first major economy to increase the cost of borrowing amid signs its recovery from the global slump is gathering momentum.

Wall Street broke out of a two week funk Monday after the Institute of Supply Management said its services index rose to 50.9 in September from 48.4 in August. A reading above 50 shows activity is expanding. The index hadn't signaled growth since August of last year.

US stocks were also boosted by a Goldman Sachs report that talked up the prospects of banks as investors scrounged for any positive news after being jolted by last week's dire report on climbing unemployment.

In Japan, the Nikkei 225 stock average rose 8.52 to 9 683.01 and Hong Kong's Hang Seng gained 139.70 to 20 568.77. South Korea's Kospi was down 0.7% at 1 596.62.

Elsewhere, Singapore's market jumped 1.3% and Taiwan's index advanced 1.5%. China's markets are closed for a weeklong holiday and reopen Friday.

Australia's market was up 0.5% despite the central bank's quarter point rate hike making returns on cash and bonds more attractive.

The central bank's governor Glenn Stevens said it was "prudent" to begin gradually reducing the stimulus provided by low interest rates. He said the risk of "serious economic contraction" in Australia had passed.

- AP