Asia stocks jump on China bank move; Nikkei gains 1.95%
Investing.com
Published Oct 11, 2011 03:48AM ET
During late Asian trade, Hong Kong's Hang Seng Index rallied 2.35%, Australia’s ASX/200 Index climbed 0.65%, while Japan’s Nikkei 225 Index jumped 1.95% after being closed Monday.
China’s state-run Central Huijin Investment Corporation said late Monday that it bought shares in the nation’s four biggest banks in an effort to ease fears over the country’s banking sector.
The nation’s largest lender Industrial and Commercial Bank of China saw shares rally 7.5%, China Construction Bank shares jumped 6.8%, Hong-Kong-listed shares of Bank of China surged 8.9%, while Agricultural Bank of China soared 12.1%.
Commodity-linked shares also contributed to gains, with oil giant CNOOC climbing 4.1%, Jiangxi Copper Company gaining 4.7%, while gold producer Zijin Mining saw shares rally 9.7%, tracking gold prices higher.
Shares in Esprit Holdings, the Hong Kong-based retailer that counts Europe as its largest market soared 11.9% after hedge fund Lone Pine Capital increased its stake to become the company’s second biggest shareholder.
Elsewhere, the Nikkei rose to a three-week high, catching up to sharp gains made in global equities during the previous day, as trading resumed following Monday’s holiday.
Japanese exporters had their first chance to react to last Friday’s better-than-expected U.S. labor data. Consumer electronics giant Sony saw shares rally 5.7%, shares of rival Sharp jumped 4.5%, while Honda shares advanced 5.5%.
Financials also performed strongly, with Mitsubishi UFJ Financial shares climbing 2.45%, Sumitomo Mitsui Financial Group adding 2.7%, while investment bank Daiwa Securities jumped 3.7%.
Elsewhere, European stock markets were modestly lower after the open. The EURO STOXX 50 dipped 0.35%, France’s CAC 40 edged 0.4% lower, the FTSE 100 slipped 0.25%, while Germany's DAX eased down 0.15%.
Later in the day, Slovakia was to be the last country to vote on a bill to expand the powers of the region’s EUR440 billion bailout fund, the European Financial Stability Facility.
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Written By: Investing.com
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