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Asia stocks broadly higher on earnings optimism; Nikkei up 1.75%

Published 04/20/2011, 02:49 AM
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Investing.com – Asian stock markets posted sharp gains on Wednesday, as market sentiment was boosted by upbeat corporate earnings from Wall Street, while Japanese exporters advanced amid optimism over the U.S. economic recovery.

During late Asian trade, Hong Kong's Hang Seng Index climbed 0.9%, South Korea's Kospi Composite surged 2.2%, while Japan’s Nikkei 225 Index jumped 1.75%. 

Official data released Tuesday showed that U.S. housing starts rose significantly more-than-expected in March, climbing by 7.2% to an annual rate of 549,000.

Shares in many of the big name Japanese exporters advanced boosted by the outlook for export earnings. Consumer electronics giant Sony saw shares climb 1.5%, shares in Nissan gained 1.95%, while the world’s largest automaker Toyota added 1.45%.

Meanwhile, shares in the world’s third largest maker of computer memory chips Elpida Memory jumped 1.9%, rival Tokyo Electron surged 4.05%, while Advantest rose 3.35% after chip manufacturing giant Intel reported better-than-expected first quarter earnings on Tuesday.

In Hong Kong, shares in the energy sector led gains after oil prices advanced. The nation’s largest oil and gas producer PetroChina saw shares jump 2.45%, shares in rival China Shenhua Energy rose 2.2%, while China’s largest offshore oil producer CNOOC added 1.6%.

Meanwhile, Australia’s S&P/ASX 200 Index rose 1.1% as resource stocks led gains after metal prices advanced. Shares in the world’s largest mining group BHP Billiton jumped 1.15%, rival Rio Tinto saw shares gain 1.3%, while shares in gold producer Newcrest Mining surged 2.25% after gold prices rose to a record high.

Elsewhere, LG Chem, South Korea biggest chemicals manufacturer saw shares jump 4.4% after reporting a 27% gain in first quarter profit.  

The outlook for European equity markets, meanwhile, was upbeat. The EURO STOXX 50 futures pointed to a gain of 0.7%, France’s CAC 40 futures indicated an increase of 0.5%, the FTSE 100 futures pointed to a rise of 0.45%, while Germany's DAX futures advanced 0.75%.

Later in the day, the U.S. was to publish industry data on existing home sales, as well as a government report on crude oil stockpiles.


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