Asia stocks push towards 6-month highs

By Elaine Lies

TOKYO (Reuters) - Asian shares rose on Friday, with South Korean stocks hitting a 6-month high after the country averted recession in the first quarter, as a Wall Street rally boosted risk demand around the region and dented the yen.

Many financial centres in the region were closed for a long weekend, making investors nervous that gains made now may not be sustained next week when many major U.S. companies report quarterly earnings.

The Nikkei hit a three-month closing high for the second day in a row, though off the day's peak reached above the psychologically key 9,000 level, as banks tumbled after Sumitomo Mitsui Financial Group (8316.T) warned of a net loss for the financial year just ended, reviving fears for other megabanks.

Nikkei .N225 edged up 0.5 percent to 8,964.11.

U.S. shares rebounded after Wells Fargo (WFC.N) said it expected to post a record quarterly profit of $3 billion (2.05 billion pounds), topping analyst expectations that sent the sector -- key to market sentiment -- sharply higher, with the S&P financial index .GSPF soaring 15.51 percent.

In Taiwan, this dovetailed with Cathay Financial (2882.TW) rallying after it reversed a year-ago loss to report market-beating first quarter profits, helping shares hit a 6-month high.

Taiwan's main TAIEX share index gained 2 percent to 5,781.96, while the Korea Composite Stock Price Index (KOSPI) rose 1.5 percent to 1,336.04.

Seoul shares gained additional upward impetus with a positive growth estimate for the first quarter from South Korea's central bank.