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Asia stocks rise on Greece optimism, Nikkei trims gains after BoJ

Published 03/13/2012, 03:49 AM
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Investing.com - Asian stock markets were broadly higher on Tuesday, as relief over Greece's debt restructuring with private creditors sparked demand for riskier assets ahead of a key meeting of Federal Reserve policymakers later in the day.

During late Asian trade, Hong Kong's Hang Seng Index rallied 1.1%, Australia’s ASX/200 Index jumped 1.2%, while Japan’s Nikkei 225 Index eased up 0.1%.

Market sentiment firmed after euro zone finance ministers indicated that Greece would receive formal approval for its second bailout early this week.

Head of the Eurogroup of finance ministers, Jean-Claude Juncker, said Monday there was "no doubt" that a second bailout for Greece, worth EUR130 billion, would be approved later in the week.

Strong gains in financial sector stocks boosted the Hang Seng higher for the fourth consecutive session after China’s central bank governor Zhou Xiaochuan said Beijing had room to ease lending curbs to support economic growth.

Hong Kong-listed shares of Bank of China rose 1.85%, Industrial and Commercial Bank of China shares added 1.7%, while European banking giant HSBC Holdings advanced 1.2%.

Property developers also contributed to gains, with China Resources Land Limited rising 2.3% a day after issuing an upbeat 2012 outlook. Sun Hung Kai Properties added 1.75% and shares in Cheung Kong Holdings up 2.65%.

Casino operators were broadly higher after Deutsche Bank upgraded its view on the sector. Shares of Wynn Macau surged 9.3% while Sands China climbed 5.2%.

Elsewhere, the Nikkei trimmed gains after briefly breaking above the 10,000-mark for the second consecutive session after the Bank of Japan refrained from boosting its asset buying program after unexpectedly adding JPY10 trillion in stimulus last month.

The BoJ unanimously decided to keep its benchmark interest rate unchanged. Japanese stocks pulled back while the yen strengthened against the U.S. dollar after the central bank announcement.

Shares in lenders were higher, with Mitsubishi UFJ Financial Group up 0.7%, Mizuho Financial Group gaining 0.75%, while Sumitomo Mitsui Financial Group climbed 1.1%.

On the downside, Asahi Kasei tumbled 5.4% after agreeing to buy medical equipment maker Zoll Medical Corporation for nearly USD2.2 billion.

Looking ahead, the outlook for European stock markets was upbeat. The EURO STOXX 50 futures pointed to a gain of 0.75%, France’s CAC 40 futures rose 0.8%, London’s FTSE 100 futures edged 0.5% higher, while Germany's DAX futures pointed to a rise of 0.85% at the open.

Later in the day, the ZEW research centre was to publish its index of economic sentiment for Germany, as well as data on sentiment in the wider euro zone.

The U.S. was to release government data on retail sales and business inventories. Also Tuesday, the Federal Reserve was to announce its benchmark interest rate; the announcement was to be accompanied by the central bank’s rate statement.

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