Asian markets rise after US stocks rally

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GMT - 3 Hours Asian markets rise after US stocks rally

Post by εﺓз• » ιη∂αġι яσ¢χ « • on Wed Sep 14, 2011 1:22 pm

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HONG KONG: Asian markets rose sharply on Monday after better-than-expected manufacturing data sent US stocks rallying, while traders' concerns over Greece's sovereign debt have eased.

The euro climbed to its highest point in nearly a month against the dollar in early trade as fears over a possible default by Athens made way for expectations of a rate hike by the European Central Bank (ECB) this week.

Hong Kong surged 1.67 percent, Tokyo jumped 1.05 percent by the break and Sydney gained 0.75 percent while Shanghai added 1.15 percent. Seoul rose one percent and Taipei advanced 0.69 percent.

Thai shares surged 3.5 percent on opening after the opposition Puea Thai party, led by the sister of former prime minister Thaksin Shinawatra, won a huge election victory.

Investors were buoyed by Friday's release in the United States of the ISM purchasing managers index for the manufacturing sector for June, which climbed 1.8 percent from May, much better than economists had forecast.

On Wall Street the Dow rose 1.36 percent, the S&P 500 gained 1.44 percent and the tech-heavy Nasdaq was up 1.53 percent.

The big gains follow extended losses during most of past month amid concerns the US economic recovery was losing steam while the Greek debt crisis looked to threaten another global financial slump.

"Sentiment has not turned immediately bullish, but it seems like the recent US slowdown was a result of temporary factors such as disruptions in Japan's supply chain (after the March 11 quake) and higher gasoline prices," said Cosmo Securities strategist Toshikazu Horiuchi.

On currency markets the euro shot up to $1.4580 in early Tokyo trade, its highest since June 9, after eurozone finance ministers cleared the way Saturday for Greece to receive urgent funds to avoid imminent bankruptcy.

The single currency eased slightly to $1.4541 in the morning, against $1.4522 in New York late Friday. It also firmed to 117.46 yen from 117.40 yen.

"An optimistic mood had been spreading since the Greek parliament last week passed the vote," for an austerity package vital to Greece receiving additional rescue funds, said Gen Kawabe, dealer at Chuo Mitsui Trust and Banking.

"We never know what would happen in the medium to long-term, but concern over a possible Greek default has diminished at least for the near term," Kawabe said.

Also lifting the unit were forecasts that the ECB will raise interest rates 0.25 percentage points at its policy meeting on Thursday. Traders are also closely watching comments from the bank's officials about the state of the economy for clues as to whether there will be another hike in August.

The dollar was almost flat at 80.77 yen against 80.81 yen.

New York's main contract, West Texas Intermediate for August delivery, was up 21 cents to $95.15 a barrel and Brent North Sea crude for August rose 31 cents to $112.08.

Gold opened at $1,491.00-$1,492.00 an ounce in Hong Kong, down from $1,500.00-$1,501.00 on Friday. (AFP)
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