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Asia stocks rise on hopes for Europe; Nikkei up 0.50%

Published 06/04/2012, 10:33 PM
Updated 06/04/2012, 10:36 PM
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Investing.com - Asian stocks rose on Tuesday amid growing sentiment global policymakers are set to take more coordinated steps to tackle the debt crisis.

During Asian trading on Tuesday, Hong Kong's Hang Seng Index was up 0.93%, Australia's S&P/ASX200 was up 1.18%, while Japan’s Nikkei 225 Index was up 0.50%.

Europe appeared to be ready to step up its fight to contain the debt crisis.

European Central Bank Governing Council member Ewald Nowotny said earlier he supported considering the idea of forming a European banking union, which bolstered not only the euro and higher-yielding currencies but sent global stocks up as well.

Fears that upcoming Greek elections will usher in anti-austerity politicians and open the door to a Greek exit from the currency zone have hammered the euro as have Spanish financial concerns, sending investors ditching assets of various classes — including Asian equities — and running to the safety of the dollar.

But Nowotny's comments ahead of a Group of Seven conference call on the debt crisis fueled sentiment the world is treating an apparent synchronized downturn with greater urgency and is ready to take more decisive action.

Comments out of Portugal earlier that the country's EUR78 billion bailout program remains on schedule coupled with statements from the country's Finance Minister Vitor Gaspar that Lisbon will pump EUR6.65 billion into the country’s banking system fueled risk-on demand as well, which boosted Asian stocks.

Furthermore, the Federal Reserve and the European Central Bank are due to address monetary policy this month, and talk that policymakers will roll out stimulus measures to steer the global economy away from downturn grew on Tuesday, especially in wake of May's dismal U.S. jobs report.

In Hong Kong, top gainers included Wharf Holdings, up 4.08%, HKEx, up 2.12%, and Cheung Kong, up 1.43%.

In Australia, top gainers included Ramelius Resources, up 12.77%, Aquarius Platinum, up 7.61%, and Beach Energy, up 7.45%.

European stock futures indicated a higher opening.

France's CAC 40 futures pointed to a gain of 0.65%, while Germany's DAX 30 futures signaled a gain of 0.42%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.32%.

Dow Jones Industrial Average futures were up 0.40% while the S&P 500 futures were up 0.47%.
Later Tuesday, The Reserve Bank of Australia will announce its benchmark interest rate.

The eurozone will unveil data on retail sales, while Germany is to publish official data on factory orders.

Also in Europe, Spain is to hold an auction of government bonds.

In the U.S., the Institute for Supply Management is to release a report on non-manufacturing activity.






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