TOPWRAP 5-Geithner optimistic on economy, Asia data encourages
* U.S., European markets rise; Asia markets fall
* U.S., other economies may resume growing - Geithner
* ECB chief Trichet tells banks to stop hoarding cash
* China to strengthen oversight of soaring lending
* Japan data offers hope that worst is over (For more on the global crisis, please double-click [nCRISIS])
NEW YORK, July 13 (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Monday he was optimistic some leading economies could see growth this year, a prediction backed up by data from Asia.
Still, European Central Bank President Jean-Claude Trichet said it could take time for European banks to digest the money the central bank has injected into the system and urged them to resume lending in order to secure a recovery.
While evidence began emerging in late March that the global recession was starting to bottom out, weaker data in recent weeks drove fears that stock markets have risen too quickly.
Moreover, the U.S. government on Monday disclosed a record budget deficit for June, ringing up a $94.32 billion deficit for the month, amid costly efforts to prop up the economy, banks and automakers and weak revenues. [ID:nN13196663]
But those fears seemed to be on hold on Monday, with markets rising in Europe and the United States as an influential analyst's bullish view on Goldman Sachs (GS.N) buoyed the financial industry.
Speaking on a trip to Britain, Geithner said there was a good chance the United States and other leading economies would resume growth rather than face a so-called double-dip recession.
"We have a very powerful set of policies in place, coming on stream. I think there is a very good chance we will see the U.S. economy and the world economy get back to recovery, get growing again, over the next few quarters," he told reporters in London. [ID:nLD723015]
He acknowledged that there were still "significant risks and challenges ahead," but said economic policies around the world had helped provide a base for recovery.
"I think the policies have been very effective in arresting, in mitigating the forces of the storm and we're starting to see a better basis for recovery starting to be made in the U.S.," Geithner said.
TRICHET: BANKS SHOULD LEND Continued...
