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Asia stocks mostly higher on global outlook; Nikkei up 1.2%

Published 01/04/2012, 02:50 AM
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Investing.com – Asian stock markets were mostly higher on Wednesday, as appetite for riskier assets strengthened amid renewed optimism in the global economy.

During late Asian trade, Hong Kong's Hang Seng Index shed 0.8%, Australia’s S&P/ASX200 surged 2.1%, while Japan’s Nikkei 225 Index jumped 1.2%.

Market sentiment was boosted by Tuesday's U.S. manufacturing data, which showed the fastest expansion in six months. A separate report said the average number of people unemployed in Germany last year fell to a two-decade low.

The Nikkei jumped to a three-week high in its first trading session of 2012, with exporters performing strongly amid the upbeat global growth outlook.

Automakers Honda and Toyota saw shares rally 4.05% and 3.1% respectively, while consumer electronics giant Sony, which gets nearly 70% of its sales abroad, climbed 1.6%.

Chip-maker Elpida Memory surged 5.6% amid reports the firm might be pushed into a tie-up with Toshiba by the Japanese government. Toshiba shares dropped 0.95%, although it reportedly denied the account.

Elsewhere, in Australia, raw material producers led gains after crude oil and metal prices rallied on the New York Mercantile Exchange on Tuesday, boosting earnings prospects for miners and energy explorers.

Mining giants BHP Billiton and Rio Tinto saw shares rally 4.1% and 2.85% respectively, gold producer Newcrest Mining gained 1.1%, while oil driller Santos jumped 2.5%.

Meanwhile, in Hong Kong, shares in lenders and insurers declined after Chinese Premier Wen Jiabao said China faced “relatively difficult” business conditions in the first quarter. He added that monetary policy will be fine-tuned as needed.   

Life insurer Ping An saw shares drop 2.15%, Industrial and Commercial Bank of China shares fell 1.1%, while Hong Kong-listed shares of Bank of China slumped 1.25%.

Conglomerate Swire Pacific Holdings was the biggest loser on the Hang Seng, tumbling 14.8% as investors priced in the spin-off of its property unit.

Looking ahead, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a loss of 0.5%, France’s CAC 40 futures fell 0.6%, London’s FTSE 100 futures dropped 0.3%, while Germany's DAX futures declined 0.55%.

Later in the day, the euro zone is to publish a preliminary report on consumer price inflation.

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