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Asia stocks broadly higher on China easing, IMF hopes

Published 01/19/2012, 02:49 AM
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Investing.com - Asian stock markets were broadly higher on Thursday, as appetite for riskier assets improved after a capital injection by the Chinese central bank into money markets and amid hopes the International Monetary Fund will boost its lending capacity.

During late Asian trade, Hong Kong's Hang Seng Index rallied 1.2% Australia’s S&P/ASX200 dipped 0.1%, while Japan’s Nikkei 225 Index jumped 1.04%.

Market sentiment was buoyed by reports that the IMF was seeking to boost its lending capacity by USD500 billion to help fight the European debt crisis.

Shares in lenders lifted the Hang Seng close to a two-month high after the People's Bank of China reportedly offered CNY183 billion, or USD29 billion, of 14-day reverse repurchase agreements, easing liquidity conditions ahead of the Lunar New Year holiday.

China’s biggest lender Industrial and Commercial Bank of China saw shares climb 2.1%, China Construction Bank shares gained 2.35%, while Ping An shares rallied 6.2%.

Shares in property developers performed strongly, extending gains from the previous session. Sino Land Company saw shares jump 5.1%, Sun Hung Kai Properties rose 2.75%, Hang Lung Properties surged 6.6%.

Elsewhere, the Nikkei rallied to a five-week high as shares in the financial sector led gains after Wall Street investment bank Goldman Sachs reported better-than-expected earnings results on Wednesday.

Japanese investment bank heavyweights Nomura Holdings and Daiwa Securities jumped 4.3% and 4.9% respectively, while the nation’s largest lender Mitsubishi UFJ Financial Group added 1.5%.   

Shares in chip makers performed strongly, tracking their global counterparts higher. Elpida Memory rallied 5.25%, while Toshiba shares climbed 3.6%.

Exporters rebounded, tracking overnight gains in the euro against the yen. Consumer electronics giant Sony saw shares gain 1.7%, while automakers Toyota and Nissan both rose 1.4% apiece.  

Elsewhere, shares in Australia underperformed the region after official data showed that the nation’s employers unexpectedly cut jobs in December.

Looking ahead, the outlook for European stock markets was upbeat as investors eyed government debt auctions by Spain and France later in the day, while talks aimed at restructuring Greece’s debts also remained in focus.

The EURO STOXX 50 futures pointed to a gain of 0.35%, France’s CAC 40 futures added 0.6%, London’s FTSE 100 futures eased up 0.05%, while Germany's DAX futures pointed to modest 0.2% increase.

Later in the day, the U.S. was to publish official data on building reports and housing starts as well as a report on consumer price inflation. The country was also to release government data on unemployment claims and a separate report on manufacturing activity in the Philadelphia area.  

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