Asian shares up after Weber comments fuel global growth hopes
Sunday, 28 November 2010
Asian stocks rose for a second day after Deutsche Bundesbank President Axel Weber said a rescue fund for the euro area has sufficient capital to calm financial markets, easing concerns about a global economic recovery, reports Bloomberg.
BHP Billiton Ltd., the world's largest mining company, gained 0.4 per cent and Rio Tinto Group, the third-biggest, climbed 1.4 per cent after metal prices advanced in London. Woodside Petroleum Ltd., Australia's No. 2 oil and gas producer, rose 1.8 per cent as crude oil prices increased. Honda Motor Co., which gets 80 per cent of its sales overseas, advanced 1 per cent in Tokyo as the yen weakened against the US dollar.
"An unwavering commitment by the European Union to provide financial support to debt-laden constituents should help remove uncertainty surrounding possible debt defaults and the dismantling of the European Union in the near term," said Tim Schroeders, who helps manage about $1.0 billion at Pengana Capital Ltd. in Melbourne. "This commitment should help ease nervousness for investors globally."
The MSCI Asia Pacific Index rose 0.1 per cent to 130.67 as of 9:23 am in Tokyo, with about two stocks advancing for each that declined. It rose 0.2 per cent yesterday after reports showed that US employment and consumer sentiment improved. The gauge has fallen 3.4 per cent from a two-year high on November 8 on speculation China will further tame inflation and concern that a debt crisis in Europe will spread. Materials and energy stocks led today's gains.
Australia's S&P/ASX 200 Index rose 0.3 per cent. Japan's Nikkei 225 Stock Average gained 0.4 per cent and South Korea's Kospi Index added 0.1 per cent.
US markets were closed yesterday for the Thanksgiving holiday. The benchmark Stoxx Europe 600 Index rose 0.5 per cent Thursday after Weber, who is also a European Central Bank Governing Council member, said there's no alternative to the European currency union.
"Investors globally welcome any moves by governments to support each other," said Angus Gluskie, who manages about $350 million at White Funds Management Pty in Sydney. "The euro issues pose a threat to the stability of financial institutions globally."
BHP Billiton Ltd., the world's largest mining company, gained 0.4 per cent and Rio Tinto Group, the third-biggest, climbed 1.4 per cent after metal prices advanced in London. Woodside Petroleum Ltd., Australia's No. 2 oil and gas producer, rose 1.8 per cent as crude oil prices increased. Honda Motor Co., which gets 80 per cent of its sales overseas, advanced 1 per cent in Tokyo as the yen weakened against the US dollar.
"An unwavering commitment by the European Union to provide financial support to debt-laden constituents should help remove uncertainty surrounding possible debt defaults and the dismantling of the European Union in the near term," said Tim Schroeders, who helps manage about $1.0 billion at Pengana Capital Ltd. in Melbourne. "This commitment should help ease nervousness for investors globally."
The MSCI Asia Pacific Index rose 0.1 per cent to 130.67 as of 9:23 am in Tokyo, with about two stocks advancing for each that declined. It rose 0.2 per cent yesterday after reports showed that US employment and consumer sentiment improved. The gauge has fallen 3.4 per cent from a two-year high on November 8 on speculation China will further tame inflation and concern that a debt crisis in Europe will spread. Materials and energy stocks led today's gains.
Australia's S&P/ASX 200 Index rose 0.3 per cent. Japan's Nikkei 225 Stock Average gained 0.4 per cent and South Korea's Kospi Index added 0.1 per cent.
US markets were closed yesterday for the Thanksgiving holiday. The benchmark Stoxx Europe 600 Index rose 0.5 per cent Thursday after Weber, who is also a European Central Bank Governing Council member, said there's no alternative to the European currency union.
"Investors globally welcome any moves by governments to support each other," said Angus Gluskie, who manages about $350 million at White Funds Management Pty in Sydney. "The euro issues pose a threat to the stability of financial institutions globally."