World markets climb as China's exports improve
Sunday, 13 December 2009
TOKYO, Dec 12 (AP): World markets advanced Friday as a big improvement in China's exports pointed to rising global demand that could lift other trade-reliant economies.
Benchmarks in Tokyo and Hong Kong led Asia's gains, snapping a string of losses that had reflected worries about shaky government finances in the West and a tepid economic recovery in the US.
As trading started in Europe, benchmarks in Britain and Germany added one per cent or more. Stock futures augured gains Friday on Wall Street. S&P futures were higher by 6.4 points, or 0.6 per cent, at 1,102.
Oil prices, meanwhile, lingered near $71 a barrel and the dollar jumped against the yen, giving an extra leg-up for shares of Japanese exporters.
Providing reassurance for investors was news that China's November exports fell 1.2 per cent from a year earlier in the smallest decline this year, as nascent recoveries in the US and other big markets helped revive demand. It was a dramatic improvement from October when exports slid 13.8 per cent and even bigger declines in previous months.
Strong growth in Chinese industrial output and retail sales for the month also underlined that the recovery in the world's third-biggest economy is gathering momentum.
Japan's Nikkei 225 stock average jumped 245.05, or 2.5 per cent, to 10,107.87 on gains in exporting stocks like Toyota Motor Corp and Sony Corp, which benefit from a weaker yen as it makes their products more competitive overseas.
Hong Kong's Hang Seng climbed 202.07, or 0.9 per cent, to 21,902.11 and South Korea's Kospi rose 4.17, or 0.3 per cent, to 1,656.90.
Elsewhere, Australia's benchmark gained 0.6 per cent and Singapore's market advanced 0.5 per cent. But China's Shanghai index reversed early gains to close down 0.2 per cent.
In Tokyo trade, heavy machinery stocks rallied after China's industrial production figures spurred hopes of increased demand. Komatsu jumped 3.4 per cent and Kubota Corp finished up 3.3 per cent. Panasonic Corp surged 4.4 per cent on the previous day's announcement it had secured majority control of Sanyo Electric Co in a $4.6 billion deal.
In the US Thursday, the Dow Jones industrial average rose 66.78, or 0.7 per cent, to 10,405.83 after a jump in exports offset concerns about an increase in unemployment claims.
The Standard & Poor's 500 index rose 6.40, or 0.6 per cent, to 1,102.35, while the Nasdaq composite index rose 7.13, or 0.3 per cent, to 2,190.86.
Oil prices hovered near $71 a barrel in Asia as a warm winter and fears of a tepid recovery in the US undermined demand for crude products like diesel and heating oil.
Benchmark crude for January delivery was up 45 cents to $71.01 in electronic trading on the New York Mercantile Exchange. On Thursday, the contract fell as low as $69.81 before settling down 13 cents at $70.54.
In currencies, the dollar rose to 88.85 yen from 88.26 yen. The euro rose to $1.4741 from $1.4732.
Benchmarks in Tokyo and Hong Kong led Asia's gains, snapping a string of losses that had reflected worries about shaky government finances in the West and a tepid economic recovery in the US.
As trading started in Europe, benchmarks in Britain and Germany added one per cent or more. Stock futures augured gains Friday on Wall Street. S&P futures were higher by 6.4 points, or 0.6 per cent, at 1,102.
Oil prices, meanwhile, lingered near $71 a barrel and the dollar jumped against the yen, giving an extra leg-up for shares of Japanese exporters.
Providing reassurance for investors was news that China's November exports fell 1.2 per cent from a year earlier in the smallest decline this year, as nascent recoveries in the US and other big markets helped revive demand. It was a dramatic improvement from October when exports slid 13.8 per cent and even bigger declines in previous months.
Strong growth in Chinese industrial output and retail sales for the month also underlined that the recovery in the world's third-biggest economy is gathering momentum.
Japan's Nikkei 225 stock average jumped 245.05, or 2.5 per cent, to 10,107.87 on gains in exporting stocks like Toyota Motor Corp and Sony Corp, which benefit from a weaker yen as it makes their products more competitive overseas.
Hong Kong's Hang Seng climbed 202.07, or 0.9 per cent, to 21,902.11 and South Korea's Kospi rose 4.17, or 0.3 per cent, to 1,656.90.
Elsewhere, Australia's benchmark gained 0.6 per cent and Singapore's market advanced 0.5 per cent. But China's Shanghai index reversed early gains to close down 0.2 per cent.
In Tokyo trade, heavy machinery stocks rallied after China's industrial production figures spurred hopes of increased demand. Komatsu jumped 3.4 per cent and Kubota Corp finished up 3.3 per cent. Panasonic Corp surged 4.4 per cent on the previous day's announcement it had secured majority control of Sanyo Electric Co in a $4.6 billion deal.
In the US Thursday, the Dow Jones industrial average rose 66.78, or 0.7 per cent, to 10,405.83 after a jump in exports offset concerns about an increase in unemployment claims.
The Standard & Poor's 500 index rose 6.40, or 0.6 per cent, to 1,102.35, while the Nasdaq composite index rose 7.13, or 0.3 per cent, to 2,190.86.
Oil prices hovered near $71 a barrel in Asia as a warm winter and fears of a tepid recovery in the US undermined demand for crude products like diesel and heating oil.
Benchmark crude for January delivery was up 45 cents to $71.01 in electronic trading on the New York Mercantile Exchange. On Thursday, the contract fell as low as $69.81 before settling down 13 cents at $70.54.
In currencies, the dollar rose to 88.85 yen from 88.26 yen. The euro rose to $1.4741 from $1.4732.