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Asia stocks rise amid optimism over recovery; Nikkei up 0.74%

Published 01/27/2011, 02:52 AM
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Investing.com – Asian stocks were broadly higher on Thursday, as market sentiment was boosted after the Federal Reserve left its monetary policy unchanged, while Japanese exporters gained amid optimism over the U.S. economic recovery. 

During late Asian trade, Hong Kong's Hang Seng Index shed 0.08%, South Korea's Kospi Composite added 0.22%, while Japan’s Nikkei 225 Index jumped 0.74%.

On Wednesday, the Fed announced that left its benchmark interest rate unchanged at 0.25% and said it would maintain efforts to stimulate the U.S. economy.

Meanwhile, shares in many of the big name Japanese exporters advanced amid optimism over the pace of the U.S. economic recovery, after official U.S. data showed that new home sales jumped to an eight-month high in December .

Shares in electronics giant Sony surged 1.71%, the world’s largest digital camera maker Canon saw shares jump 2.19%, while automaker Honda, which gets approximately 70% of its revenue abroad rallied 2.02%.

Shares in Japan’s largest maker of industrial robots Fanuc surged 4.58% after the company reported better-than-expected fourth quarter earnings, citing increased demand from China.

Elsewhere, shares in industrial machinery manufacturer Mitsubishi Heavy Industries soared 4.01% after the Nikkei newspaper reported that the company could post a profit of JPY90 billion for the fiscal year ending March 31, 35% higher than the previous year.

In Hong Kong, shares in property developers led losses after the Chinese government introduced further property tightening measures aimed at cooling prices.

Shares in Hong Kong’s largest property developer Hutchison Whampoa dropped 1.04%, rivals Sino Land Company saw shares slump 1.14%, while shares in property investment firm Lai Sun Development tumbled 1.75%.

Elsewhere, Australia’s S&P/ASX 200 Index was little changed after its return from Wednesday’s public holiday, shedding 0.04%.

Shares in the world’s largest mining group BHP Billiton was up 0.27%, rival Rio Tinto saw shares gain 0.62%, while gold producer Newcrest Mining saw shares surge 1.49%.

However, shares in engineering group Downer EDI plunged 20.13% after announcing further delays in delivering trains for Sydney’s suburban rail network.
 
The outlook for European equity markets, meanwhile, was mixed. The EURO STOXX 50 futures pointed to a gain of 0.05%, France’s CAC 40 futures indicated an increase of 0.03%, the FTSE 100 futures pointed to a gain of 0.04%, while Germany's DAX futures were down 0.05%.

Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales.


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