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Asia stocks rally on strong earnings reports; Nikkei up 0.35%

Published 08/02/2010, 02:48 AM
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Investing.com – Asian stocks were higher on Monday as investor confidence was boosted by strong earnings reports that overshadowed worse-than-expected Chinese manufacturing data.

Hong Kong's Hang Seng Index moved up 1.20%; South Korea's Kospi Composite jumped 1.30%; while Japan’s Nikkei advanced 0.35%.

The Kospi's gains came after Hyundai Mobis, South Korea’s biggest auto-parts maker, jumped 8.6% after the company reported that its second-quarter profit rose 60%, boosted by strong car sales.

Meanwhile, shares in Japans second largest auto-maker Honda jumped 3.99% after the company reported its best quarterly profit in 2 years and raised its profit forecasts in spite of the yens steep gains.

Electronics and heavy machinery maker Hitachi also rose 4.26% after revising up its forecast for first-half profit by 82%.

In China, the Shanghai Composite Index rose 0.8% amid speculation that the government will relax policies aimed at curbing economic growth after the government’s Purchasing Managers’ Index grew at the slowest pace in 17 months.

Also Monday, speculation mounted that the Japanese government would intervene in currency markets as the U.S. dollar remained close to a 14-year high against the yen.

The outlook for European equity markets, meanwhile, was optimistic: EURO STOXX 50 futures indicated a jump of 0.83%, France’s CAC 40 futures pointed to a gain of 0.97% and Germany's DAX futures indicated an increase of 0.70%.

Later in the day, the U.S. was to release key manufacturing data, while the Federal Reserve Chairman Ben Bernanke was also to speak.

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