World markets respond to good US data

Global stock markets recovered yesterday as better-than-expected US data gave investors hope of a turnaround in the world's largest economy and helped offset their fears of a swine flu pandemic.

Airline stocks, slammed in recent days amid worries about the disease's toll on travel, rebounded sharply around Asia. The dollar strengthened against the yen, while oil prices were steady.

Investors were cheered after a closely watched measure of US consumer confidence soared in April, suggesting Americans may be ready to spend again - a boon for export-driven Asian countries. An easing in the pace of home price declines also boosted sentiment.