Asia stocks rally on EU hopes, China data; Nikkei jumps 1.9%
Investing.com
Published Oct 24, 2011 03:46AM ET
During late Asian trade, Hong Kong's Hang Seng Index rallied 3.9%, Australia’s ASX/200 Index climbed 2.7%, while Japan’s Nikkei 225 Index jumped 1.9%.
At the conclusion of a series of weekend meetings in Brussels by European leaders, German Chancellor Angela Merkel and French President Nicolas Sarkozy said Sunday that a broad agreement is taking shape in resolving the euro zone’s debt woes.
A comprehensive response to the two-year old sovereign-debt crisis was expected to be unveiled at a follow-up meeting of EU policy makers on Wednesday.
Asian equities added to sharp gains after a preliminary reading of the HSBC China purchasing managers' index rose to a five-month high of 51.1 in October, moving into expansion territory for the first time in four months.
In Hong Kong, raw material producers led gains after oil and metal prices advanced, boosting earnings prospects for miners and energy explorers.
China’s largest aluminum producer Aluminum Corporation of China saw shares surge 5.3%, oil and gas giant PetroChina jumped 3.9%, while copper producer Jiangxi Copper Company rallied 10.1%.
Financials also contributed to gains, with shares in the nation’s largest lender Industrial and Commercial Bank of China climbing 6.5%, China Construction Bank shares adding 3.3%, while Ping An shares rallied 7.6%.
Elsewhere, shares in Japanese exporters performed strongly after official data released earlier showed that Japan’s trade deficit narrowed more-than-expected in September, as exports rose 2.4%, outstripping expectations for a 1.0% increase.
Semiconductor manufacturer Elpida Memory saw shares jump 4%, digital camera maker Canon rose 1.7%, while automakers Honda and Toyota added 2.6% and 1.3% respectively.
Meanwhile, European stock markets were up after the open. The EURO STOXX 50 advanced 0.55%, France’s CAC 40 rose 0.6%, the FTSE 100 added 0.35%, while Germany's DAX climbed 0.8%.
Later in the day, the euro zone was to release preliminary data on activity in the manufacturing and services sectors, as well as official data on industrial new orders.
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Written By: Investing.com
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