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Asia stocks broadly higher as commodities gain; Nikkei up 0.73%

Published 01/13/2011, 02:54 AM
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Investing.com – Asian stocks were broadly higher on Thursday, as shares in the commodity sector led markets higher and as market sentiment was boosted after Portugal’s successful bond auction eased concerns over the sovereign debt crisis in the euro zone.

During late Asian trade, Hong Kong's Hang Seng Index climbed 0.59%, South Korea's Kospi Composite shed 0.26%, while Japan’s Nikkei 225 Index jumped 0.73%.

Shares in the commodity sector performed strongly after crude oil and metal prices advanced.

Shares in Japan’s largest oil producer Inpex jumped 2.07%, rival Japan Petroleum Exploration Company saw shares gain 1.09%, while shares in metal producer Mitsui Mining & Smelting climbed 1.11%.  

Meanwhile, shares in many of the big name Japanese exporters advanced after the yen weakened against the euro, boosting the outlook for export earnings.

Shares in the world’s largest automaker Toyota increased 1.00%, rival Honda saw shares jump 1.81%, while shares in the world’s biggest digital camera maker Canon rallied 2.05%.

Elsewhere, in Hong Kong, shares in the financial sector were broadly higher after China’s banking regulator asked banks to extend more credit for affordable homes while keeping risks under control.

Shares in China Construction Bank surged 2.08%, banking giant HSBC Holdings saw shares jump 1.38%, while shares in China’s largest lender Industrial and Commercial Bank of China rallied 2.36%. 

Elsewhere, shares in retailer Li & Fung, which gets more than a quarter of its revenue from Europe added 1.40%, while rival Esprit Holdings, which receives approximately 80% of its sales from Europe, climbed 0.94%.

Meanwhile, Australia’s S&P/ASX 200 Index soared 1.50% as resource stocks led gains.

Shares in the world’s largest mining group BHP Billiton surged 1.88%, shares in rival Rio Tinto rallied 2.18%, while shares in coal producer Wesfarmers jumped 2.09%.

Meanwhile, shares in Australia’s largest building and construction materials supplier Boral surged 4.35% on expectations of strong demand for cement once reconstruction began in the area damaged by flooding.

The outlook for European equity markets, meanwhile, was mixed. The EURO STOXX 50 futures pointed to a rise of 0.03%, France’s CAC 40 futures indicated a drop of 0.02%, the FTSE 100 futures pointed to a loss of 0.03%, while Germany's DAX futures were down 0.11%.

Later in the day, the European Central Bank was to announce its benchmark interest rate while the U.S. was to release a flurry of data, including a key weekly report on initial jobless claims as well as data on producer price inflation and its trade balance.


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