Asian stocks power to one-month high

By Elaine Lies

TOKYO (Reuters) - Asian shares jumped on Thursday, buoyed by strong U.S. earnings and global recovery hopes after China's economy grew faster than forecast in the second quarter.

Tokyo shares hit a one-week high and shares elsewhere in Asia -Pacific powered to their highest in a month. The dollar and euro held broadly steady against the yen, base metals prices rose and crude oil futures edged higher.

But markets were keeping a wary eye on the fate of CIT Group Inc CIT.N a U.S. lender to thousands of small and mid-sized businesses, after bailout talks with the government ended, a move that could ultimately drive it to bankruptcy.

U.S. stocks surged 3 percent or more on Wednesday, with the S&P 500 racking up its three best days since March, after results from bellwether Intel Corp (INTC.O) beat expectations to lift hopes for a rebound in technology spending and improved corporate profitability. .N

"Added to hopes for a recovery in U.S. corporate earnings, investors are generally welcoming growing signs of a recovery in U.S. economic data," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities in Tokyo.

China said its second quarter gross domestic product rose 7.9 percent against the previous year, beating expectations for a 7.5 percent rise, while its first half GDP rose 7.1 percent against a year earlier.

Optimism was reinforced in the United States by manufacturing data that suggested the recession is abating, as well as minutes from the Federal Reserve's most recent policy-setting meeting that showed officials judged that the U.S. economy's contraction was slowing.

Asian shares across the region rose 1.8 percent to their highest since mid-June. .MIAPJ0000PUS