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Asia stocks broadly higher after Irish bailout; Nikkei up 0.86%

Published 11/29/2010, 02:51 AM
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Investing.com – Asian stocks were broadly higher on Monday, after an agreement was reached on a rescue package for Ireland, but gains were limited as geopolitical tensions in Korea continued.

During late Asian trade, Hong Kong's Hang Seng Index jumped 1.12%, South Korea's Kospi Composite shed 0.33%, while Japan’s Nikkei 225 Index climbed 0.86%.

Shares in many of the big name Japanese exporters advanced as the U.S. dollar rose to the highest level in 2 months against the yen.

Shares in Japan’s third-largest automaker Nissan, which gets approximately 75% of its revenue abroad, surged 1.53%, shares in the world’s largest maker of digital cameras Canon climbed 1.00%, while electronic giant Sony saw shares rally 2.80% after the stock was upgraded to ‘buy’. 

Meanwhile, shares in Toshiba jumped 2.83% after the company said it reached an agreement to launch a joint venture with Egypt-based electronics maker El Araby. 

Shares in the financial sector performed strongly after the European Union agreed on a rescue package to bailout Ireland. Shares in the country’s largest lender Mitsubishi UFJ Financial Group jumped 1.00%, while rivals Mizuho Financial Group saw shares climb 0.98%..

Elsewhere, in Hong Kong, markets were higher as crude oil prices rebounded. Shares in China’s largest oil and gas company PetroChina soared 3.51%, Cnooc Limited, China’s largest offshore oil producer, saw shares gain 0.67%, while shares in power producer China Resources climbed 1.53%.

The outlook for European equity markets, meanwhile, was upbeat. The EURO STOXX 50 futures pointed to a gain of 1.03%, France’s CAC 40 futures indicated an increase of 0.69%, the FTSE 100 futures pointed to a rise of 0.51% and Germany's DAX futures were up 0.39%.

On Sunday, European Union finance ministers endorsed a EUR85 billion loan package to prop up Ireland’s banking sector and economy. Ireland said the emergency loans would run for an average of seven and a half years, at an interest rate of 6%, lower than some had expected.


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