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Asia stocks rise on Japanese business sentiment data; Nikkei up 0.19%

Published 07/01/2012, 10:47 PM
Updated 07/01/2012, 10:50 PM
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Investing.com - Asian stocks rose early Monday on reports that big businesses in Japan are feeling less pessimistic over the future despite the yen's consistent strength this year, which has crimped exports.

Tough measures taken at a European Union summit last week also pushed up Asian stock prices.

During Asian trading on Monday, Australia's S&P/ASX200 was up 1.20%, while Japan’s Nikkei 225 Index was up 0.19%.

Hong Kong markets were closed on holiday.

Big businesses in Japan aren't feeling as blue these days.

The Bank of Japan early Monday reported that its Tankan Manufacturing index rose to a seasonally adjusted -1 in the second quarter from -4 in the preceding quarter.

Analysts were forecasting the Tankan Manufacturing index to remain unchanged at -4.

The index measures sentiment among large Japanese manufacturers, and the bullish surprise sparked a risk-on rally in Asia on Monday.

Stocks also rose on tougher-than-expected measures taken at last week's European Union summit to tackle the debt crisis.

E.U. leaders voted to give the European Stability Mechanism, a bailout fund, approval to recapitalize banks directly as well as the green light to buy government bonds directly to ease credit conditions in troubled countries.

E.U. policymakers also agreed to launch a supervisory organization for eurozone banks by the end of this year.

The news sparked widespread optimism that European leaders are taking greater strides to firewall and extinguish the debt crisis, which sent U.S. and European markets soaring on Friday.

Asian stocks followed suit on Monday.

In China, the Purchasing Managers’ Index fell to 50.2 in June from 50.4 in May, the government reported, which dampened gains slightly.

In Australia, top gainers included Fairfax Media, up 8.11%, Mount Gibson Iron, up 6.98%, and Blusescope Steel, up 6.67%.

In Australia, top decliners included Aristocrat Leisure, down 11.59%, St. Barbara Limited, down 11.30%, and David Jones Limited, down 5.02%.

European stock futures indicated a lower opening.

France's CAC 40 futures pointed to a loss of 0.51%, while Germany's DAX 30 futures signaled a loss of 0.32%. Meanwhile, in the U.K., the FTSE 100 futures indicated a loss of 0.15%.

Dow Jones Industrial Average futures were down 0.26% while the S&P 500 futures were down 0.25%.

On Monday, the eurozone will release unemployment rate figures, while Italy will publish a report on manufacturing activity, and soft numbers would send Asian stocks falling .

Later Monday in the U.S., the Institute for Supply Management will release its Manufacturing Purchasing Managers Index.








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