Thursday, October 6, 2011

Asian Markets End Higher On EU Bank Hopes

Asian Markets End Higher On EU Bank HopesShawshank, VA 10/6/2011 (PennyPayDay) – Most Asian markets ended higher Thursday taking positive cues from Wall Street where stocks posted sharp gains overnight amid easing worries about the financial situation in Europe. Also, European stocks were extending gains in morning session as investors cheered news that European officials are strengthening efforts to shore up the euro zone's banking sector.

Private lenders should receive backing "if there is a common view that banks aren't sufficiently capitalized for the current market condition," German Chancellor Angela Merkel said yesterday in a joint press conference with European Commission President Jose Manuel Barroso.

Moreover, investors were encouraged by the U.S. ADP jobs report Wednesday, which revealed that private sector employment rose by 91,000 jobs in September following a downwardly revised increase of 89,000 jobs in August. Economists had expected employment to increase by 75,000 jobs compared to the addition of 91,000 jobs originally reported for the previous month.

In the commodity markets, gold futures moved up, with gold for December delivery adding $10.00 to $1,651.60 an ounce. Meanwhile, crude for November gained $1.20 to $80.88 a barrel. Yesterday, the EIA revealed that U.S. crude oil inventories dipped 4.70 million barrels and gasoline stocks moved down by 1.10 million barrels in the week ended September 30. Analysts were expecting crude oil inventories pile up by 2.50 million barrels and gasoline stocks to add 1.30 million barrels last week.

The Japanese market snapped its four session losing streak, with the broader Nikkei 225 index finishing up 139.04 points or 1.66 percent.

Sony rebounded from a 25-year low hit last week, to gain nearly 5 percent amid reports that it had secured financing from Abu Dhabi's investment fund for its bid for British music company EMI.

Hong Kong's Hang Seng Index advanced 4.3 percent after the market resumed trade following Wednesday's public holiday.

Brokerage giant Citic Securities fell 4.4 percent on its debut, from its IPO price of HK$13.30.

Australia's benchmark S&P/ASX 200 gained 143.40 points to 4,069.90 led by big miners. BHP Billiton and Rio Tinto.

Among bank stocks, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac ended higher. Woodside Petroleum and Rio Tinto added around 4.0 percent each.

Shares in New Zealand rose for a second session, with the The NZX 50 Index rising 18.09 points, or 0.54 percent, to 3346.21.Postie Plus Group Limited was the top gainer, adding nearly10 percent.

The South Korean market extended gains with the benchmark Kospi gaining 2.63 percent on foreign fund buying. Elsewhere, Singapore's Straits Times is gathering nearly 3 percent , while the Taiwan Weighted gained over 2 percent.

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