Asia stocks gain in quiet holiday trade; Nikkei climbs 1%
Investing.com
Published Dec 26, 2011 02:59AM ET
During late Asian trade, Japan’s Nikkei 225 Index jumped 1%. Trading volumes were low as several markets remained close, including Hong Kong, Singapore, Australia, Indonesia, Malaysia and New Zealand, resulting in quiet trade.
The Nikkei rose above its 25-day moving average, catching up to gains in global equities from the previous session as indications the U.S. economy was strengthening lifted sentiment.
Government data showed Friday that U.S. new home sales rose to a seven-month high in November, while durable goods orders rose a better-than-expected 3.8% in November from October.
Both reports came amid a week marked by bullish U.S. economic indicators, including a report showing that initial jobless claims fell to the lowest level since April 2008.
Shares in Japanese exporters performed strongly, boosted by the outlook for export earnings. Consumer electronics giant Sony saw shares gain 1.6%, while automakers Honda and Mazda rose 1.25% and 0.75% respectively.
Meanwhile, digital camera maker Canon saw shares gain 1.3% after the Nikkei Newspaper reported that the company was likely to pay a JPY120 dividend for this year, matching last year’s record payment.
Shares in the financial sector were mixed as the threat of mass credit ratings downgrades for euro zone countries still lingered, with Standard & Poor's yet to announce if it will cut ratings on any of the 15 countries it has on credit watch negative.
Two independent European government sources said Friday that S&P was not expected to release its verdict on euro zone debt ratings until January.
Investment bank Nomura Holdings, which has large exposure to European sovereign debt, saw shares slump 2%, while Sumitomo Mitsui Financial Group shares edged up 0.35%.
On the downside, troubled nuclear power plant operator Tokyo Electric Power Company saw shares drop 4.05% amid reports it would seek several hundred billion yen in fresh aid to compensate nuclear disaster victims.
Investors expect trading to be quiet throughout the day, with markets in Europe, the U.K. and the U.S. all closed for the Boxing Day holiday.
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Written By: Investing.com
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