Asian stocks up on Wall Street rise
Thursday, 4 February 2010
HONG KONG, Feb 3 (AFP): Asian stocks were higher Wednesday, taking their lead from another Wall Street rally following strong corporate results, but Toyota was hit again as data showed US sales fell 16 per cent.
The Japanese auto giant was suffering after Washington hit out at its handling of the recall of millions of cars around the world due to a defective pedal that can get stuck and cause unwanted acceleration.
Toyota shares declined 3.7 per cent to 3,470 yen in Tokyo as figures showed US sales in January came in below 100,000 for the first time since January 1999.
The firm announced a recall on January 21 while sales and production of the eight affected models were suspended on January 26.
"There is no doubt that the stop sale which was put in place last week impacted our sales," said Bob Carter, general manager for the Toyota division.
Toyota was criticised by US Transportation Secretary Ray LaHood, who said its recall came only after pressure from Washington.
"While Toyota is taking responsible action now, it unfortunately took an enormous effort to get to this point," he said.
Toyota said Monday it had started shipping parts to US dealers to repair the millions of vehicles affected by accelerator pedal problems.
However, Japanese stocks still rose 0.28 per cent in the morning as dealers looked to a third straight gain on the Dow Jones index.
Wall Street climbed 1.09 per cent after results delivery giant UPS, an economic bellwether, chemicals behemoth Dow Chemical and builder D R Horton all exceeded analysts' forecasts, reinforcing hopes of an economic recovery.
Hong Kong shares were 0.71 per cent higher in the first few minutes.
Chinese shares rose 0.30 per cent in early trade Wednesday, tracking overnight gains in US stocks, dealers said.
The Shanghai Composite Index, which covers both A and B shares, was up 8.90 points at 2,943.61.
Australian shares rose 0.51 per cent, adding to a strong showing on Tuesday after the central bank held interest rates on hold at 3.75 per cent. The index was helped by strong earnings from Rupert Murdoch's News Corp.
The media giant's shares rose 3.68 per cent to 17.49 dollars (15.47 US) after it reported a second-quarter net profit of 245 million US dollars.
"News Corp came out with pretty positive results before the market opened and that business is likely to see some analyst upgrades," RBS Morgans Brisbane private client adviser Craig Walker said.
"BHP and Rio are also contributing to the market."
Miner BHP Billiton added 2.52 per cent to 41.48 dollars while rival Rio Tinto edged up 1.44 per cent to 72.03 dollars.
The Japanese auto giant was suffering after Washington hit out at its handling of the recall of millions of cars around the world due to a defective pedal that can get stuck and cause unwanted acceleration.
Toyota shares declined 3.7 per cent to 3,470 yen in Tokyo as figures showed US sales in January came in below 100,000 for the first time since January 1999.
The firm announced a recall on January 21 while sales and production of the eight affected models were suspended on January 26.
"There is no doubt that the stop sale which was put in place last week impacted our sales," said Bob Carter, general manager for the Toyota division.
Toyota was criticised by US Transportation Secretary Ray LaHood, who said its recall came only after pressure from Washington.
"While Toyota is taking responsible action now, it unfortunately took an enormous effort to get to this point," he said.
Toyota said Monday it had started shipping parts to US dealers to repair the millions of vehicles affected by accelerator pedal problems.
However, Japanese stocks still rose 0.28 per cent in the morning as dealers looked to a third straight gain on the Dow Jones index.
Wall Street climbed 1.09 per cent after results delivery giant UPS, an economic bellwether, chemicals behemoth Dow Chemical and builder D R Horton all exceeded analysts' forecasts, reinforcing hopes of an economic recovery.
Hong Kong shares were 0.71 per cent higher in the first few minutes.
Chinese shares rose 0.30 per cent in early trade Wednesday, tracking overnight gains in US stocks, dealers said.
The Shanghai Composite Index, which covers both A and B shares, was up 8.90 points at 2,943.61.
Australian shares rose 0.51 per cent, adding to a strong showing on Tuesday after the central bank held interest rates on hold at 3.75 per cent. The index was helped by strong earnings from Rupert Murdoch's News Corp.
The media giant's shares rose 3.68 per cent to 17.49 dollars (15.47 US) after it reported a second-quarter net profit of 245 million US dollars.
"News Corp came out with pretty positive results before the market opened and that business is likely to see some analyst upgrades," RBS Morgans Brisbane private client adviser Craig Walker said.
"BHP and Rio are also contributing to the market."
Miner BHP Billiton added 2.52 per cent to 41.48 dollars while rival Rio Tinto edged up 1.44 per cent to 72.03 dollars.