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Asia stocks advance on global recovery hopes; Nikkei gains 0.1%

Published 04/04/2011, 02:48 AM
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Investing.com – Asian stock markets advanced on Monday, as indications the global economic recovery was strengthening lifted market sentiment, while Japanese exporters performed strongly on the back of a weaker yen. 

During late Asian trade, Hong Kong's Hang Seng Index jumped 1.1%, South Korea's Kospi Composite added 0.24%, while Japan’s Nikkei 225 Index eased up 0.11%

On Friday, the U.S. Department of Labor said that the U.S. economy added 216,000 jobs in March, surpassing expectations for a 188,000 increase. The unemployment rate unexpectedly slid to a two-year low of 8.8%, from 8.9% in February.

Shares in Japanese exporters performed strongly, boosted by the outlook for export earnings. Shares in digital camera maker Canon climbed 1.25%, electronics manufacturer Sharp, which gets nearly 60% of its revenue in North America rose 1.1%, while shares in Nissan added 0.8%.

Meanwhile, shares in Japan’s largest clothing retailer Fast Retailing jumped 3.4% after Credit Suisse recommended buying the stock.

However, shares in Japanese real estate developers were broadly lower after Credit Suisse downgraded the nation’s real estate industry, citing concerns that the earthquake and tsunami will have an impact on the profits of developers.

Mitsubishi Estate sank 2.1%, Mitsui Fudosan, Japan’s second largest developer, slid 1.5%, while Sumitomo Realty & Development , slumped 3%.

Elsewhere, Australia’s S&P/ASX 200 Index closed 0.46% higher as shares in copper producer Equinox Minerals soared 28.7% after China-based Minmetal Resources made an unsolicited offer of approximately USD6.5 billion for the company.

Other copper miners were also up on the news, with Oz Minerals climbing 3.1% and PanAust rallying 7.7%.

The outlook for European equity markets, meanwhile, was upbeat. The EURO STOXX 50 futures pointed to a gain of 0.21%, France’s CAC 40 futures advanced 0.19%, the FTSE 100 futures edged higher 0.13%, while Germany's DAX futures indicated a rise of 0.10%.

Later in the day, Federal Reserve Chairman, Ben Bernanke was to speak at a public engagement. 

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