BANGKOK - Asian stock markets snapped three days of losses Friday after the U.S. economy broke out of a year-long slump, spurring hopes of improved demand for the region's exports.

Major benchmarks from Tokyo to Sydney gained 1.5 percent or more while oil hovered near $80 a barrel on expectations the U.S. expansion signals improved demand for crude.

The Commerce Department's report that gross domestic product rose at an annual rate of 3.5 percent in the third quarter reinvigorated investors who had dumped stocks for much of the week on signs of a slowing U.S. housing market and weak consumer confidence.

It was the first growth after four straight quarters of contraction but analysts cautioned it will be difficult to sustain the pace. Much of the impetus for growth in the world's largest economy came from government stimulus including a new retired cash for clunkers program.

In another sign of improving financial and economic conditions, Japan's central bank said it would stop buying corporate debt in December, ending some of the emergency credit measures implemented early this year as it battled recession, plunging markets and a lending freeze. That news came as the world's No. 2 economy reported a drop in unemployment for the second straight month in September.

Earnings also provided positive cues. Japanese electronics and entertainment giant Sony reported a smaller-than-expected quarterly loss of $289 million and trimmed its estimate of full year losses. South Korea's Samsung, a world leader in consumer electronics, said quarterly profit triped to a record $3.14 billion.

Hong Kong's Hang Seng led Asia's gains, jumping 520.66 points, or 2.5 percent, to 21,785.65. Japan's Nikkei 225 stock average was up 143.64, or 1.5 percent, at 10,034.74 but South Korea's Kospi reversed gains to fall 0.3 percent to 1,580.69.

Elsewhere, China's Shanghai Composite Index advanced 1.2 percent, India's Sensex was up 0.7 percent and Australia's benchmark gained 1.5 percent.

The swing higher remains vulnerable to disappointment with stocks already up massively since the global rally began in March. There are also nagging doubts that private economic activity can sustain growth once the effects of unprecedented government stimulus spending and super-low interest rates begin to fade.

"The external demand outlook is highly uncertain," Goldman Sachs economist Chiwoong Lee said in a report. "Government policies in Japan and overseas should support production growth for the remainder of the year, but we still see risk of a fall in production when the policy boost fades."

But such concerns were pushed aside in the U.S. on Thursday.

The Dow Jones industrial average had its best day since July 15, rising 199.89, or 2.1 percent, to 9,962.58. The broader Standard & Poor's 500 index rose 23.48, or 2.3 percent, to 1,066.11, while the Nasdaq composite index rose 37.94, or 1.8 percent, to 2,097.55.

Oil prices hovered near $80 a barrel in Asia as the U.S. expansion raised hopes that demand for crude will improve.

Benchmark crude for December delivery was down 7 cents to $79.80 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.41 to settle at $79.87 on Thursday.

In currencies, the dollar fell to 90.94 yen from 91.43. The euro eased to $1.4822 from $1.4834.

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Associated Press Writer Tomoko A. Hosaka in Tokyo contributed to this report.

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