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Asia stocks gain on hopes for U.S. fiscal clarity; Nikkei up 0.79%

Published 12/05/2012, 10:51 PM
Updated 12/05/2012, 10:53 PM
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Investing.com - Asian stocks were mixed to higher on Thursday on hopes that U.S. policymakers will avoid a year-end fiscal cliff, a combo of tax hikes and spending cuts scheduled to take effect early next year, boosted share prices.

During Asian trading on Wednesday, Hong Kong's Hang Seng Index was up 0.01%, Australia's S&P/ASX200 was down 0.11%, while Japan’s Nikkei 225 Index was up 0.79%.

Earlier in the U.S., Treasury Secretary Timothy Geithner said the White House won't accept a 2013 fiscal framework without raising taxes on the top 2% of U.S. earners, a proposal Republicans have rejected.

Congressional Republicans and the Democratically controlled White House are scrambling to agree on fiscal reforms before the end of the year, when sweeping tax hikes and deep spending cuts kick in at the same time, a combination known as a fiscal cliff that could send the country into a recession next year if policymakers fail to act quickly.

President Barack Obama, however, reassured markets that if Republicans accept tax hikes on wealthier Americans, a deal could be pushed through in "about a week."

Markets largely brushed off private-sector jobs data.

Payroll processor ADP reported that nonfarm payrolls rose by a seasonally adjusted 118,000 in November, below expectations for an increase of 125,000, though Superstorm Sandy disrupted economic activity in a large swath of the heavily populated eastern United States.

October's figure was revised down to a gain of 157,000 from a previously reported increase of 158,000.

Elsewhere in the U.S., the Institute of Supply Management reported that service-sector activity expanded at a quicker pace than expected in November.

The ISM non-manufacturing purchasing managers' index rose to 54.7 last month from 54.2 in October, compared to expectations for a decline to 53.5.

In Hong Kong, top gainers included China Overseas, up 2.12%, Li & Fung, up 1.58%, and China Shenhua, up 1.20%.

In Australia, top decliners included Intrepid Mines, down 8.47%, Coalspur Mines, down 5.61%, and Karoon Gas Australia, down 4.84%.

European stock futures indicated a lower opening.

France's CAC 40 futures pointed to a loss of 0.14%, while Germany's DAX 30 futures pointed to a loss of 0.10%. Meanwhile in the U.K., FTSE 100 futures were down 0.10%.

Dow Jones Industrial Average futures were down 0.08%, while the S&P 500 futures were down 0.09%.







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