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Asia stocks broadly higher as Greece fears ease; Nikkei up 1.8%

Published 09/15/2011, 02:47 AM
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Investing.com – Asian stock markets were broadly higher on Thursday, as fears over an imminent Greek debt default eased after German Chancellor Angela Merkel and French President Nicolas Sarkozy reaffirmed their support to the debt-laden country.

During late Asian trade, Hong Kong's Hang Seng Index gained 0.25%, Australia’s ASX/200 Index jumped 1.43%, while Japan’s Nikkei 225 Index rallied 1.78%.

French President Sarkozy and German Chancellor Merkel are “convinced” Greece will remain in the euro zone, according to a statement released following Wednesday’s conference call between the French and German leaders and Greek Prime Minister George Papandreou.

Shares in Japanese lenders were supported by the comments, with Mitsubishi UFJ Financial Group gaining 1.55%, Sumitomo Mitsui Financial Group rose 1.1%, while the nation’s third largest lender Mizuho Financial Group climbed 1.8%.

Shares in Japanese exporters with high exposure to Europe also contributed to gains, with automakers Honda and Nissan jumping 4% and 2.15% respectively, while consumer electronics giant Sony added 1%.

Shares in semiconductor manufacturer Elpida Memory rallied 5% after the Nikkei Newspaper reported that the company planned to shift nearly 40% of its domestic output capacity to Taiwan.

Elsewhere, in Hong Kong, shares in oil producers led gains with oil giant PetroChina climbing 2.75%, while shares in rival Sinopec rose 2.4%.

On the downside, clothing retailer Esprit Holdings plunged 10% after saying 2011 fiscal year profit tumbled 98% to HKD79 million, far below expectations for profit of HKD3.16 billion, as store closures and slowing demand weighed.

Meanwhile, the outlook for European stock markets was broadly higher ahead of a closely-watched Spanish debt auction later in the day.

The EURO STOXX 50 futures pointed to a gain of 1%, France’s CAC 40 futures rose 0.8%, the FTSE 100 futures advanced 1.1%, while Germany's DAX futures indicated a strong gain of 1.3%.

Later in the day, the U.S. was to publish a flurry of data, with government reports on consumer price inflation, as well as the weekly report on initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.

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