Intel, Goldman earnings cheer markets despite data

By Steve Eder and Alexai Oreskovic

NEW YORK/SAN FRANCISCO (Reuters) - Strong earnings from Intel Corp and Goldman Sachs lifted hopes of a rebound in corporate profits, despite signs Western economies are not yet on a firm path to recovery from the deepest recession in decades.

Europe and the United States have seen lacklustre data in recent weeks, but the picture has been rosier in Asia, and on Wednesday China said its foreign exchange reserves had topped $2 trillion in a sign of money flowing back into the country in anticipation of an improving economy.

The Bank of Japan was widely expected to leave its target interest rate at 0.1 percent when a policy meeting ends later on Wednesday, with attention focused on whether it will extend its intervention in the corporate finance market.

Asia stock markets gained for a second session and the yen stayed soft against the dollar and euro as the results from Intel and Goldman boosted risk appetite.

"We have already seen a fair bit of buying into risk over the past few weeks and people are feeling a bit better about the economy," said Chris Kimber, client adviser at Bell Potter Securities in Australia.

BEATING FORECASTS

Intel reported quarterly earnings of 18 cents a share, far exceeding forecasts of 8 cents a share, and also gave an outlook that blew past forecasts.