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Upbeat US figures boost Asian markets
AFP - Wednesday, February 3
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Upbeat US figures boost Asian markets
HONG KONG (AFP) - – Strong US manufacturing figures boosted Asian stock markets Tuesday while Tokyo was pushed higher following an announcement from Toyota that the auto giant would start fixing recalled cars.
Cheaper shares in China following last week's tumble also brought bargain hunters into the mix, while Sydney was helped by the central bank's surprise decision to put interest rates on hold.
Tokyo's Nikkei was lifted by a surge in Toyota shares after the company said it would start its programme of repairing vehicles this week.
The index finished 1.63 percent, or 166.07 points, higher at 10,371.09.
Toyota jumped 4.5 percent, recovering some of its recent heavy losses, after the company said it had started shipping parts to US dealers to fix the millions of vehicles recalled due to sticking accelerator pedals.
The Japanese firm said it would resume production of the eight affected models on February 8 at factories in North America and resume sales after dealers had fixed the vehicles on their lots.
Later Toyota vice president Shinichi Sasaki issued a fresh apology over the crisis but said: "I do not think that the expansion of the production overseas has affected the quality."
Hong Kong closed 0.14 percent, or 81.30 points, up at 20,272.18.
However, Shanghai closed down 0.23 percent, or 6.65 points, at 2,934.18 as fears of further credit tightening by Beijing continued to weigh on sentiment.
Sydney shares lifted after the Reserve Bank of Australia said it was keeping interest rates on hold at 3.75 percent after three successive hikes, surprising economists who had expected another 25-basis-point increase.
"Since information about the early impact of those changes is still limited, the board judged it appropriate to hold a steady setting of monetary policy for the time being," bank governor Glenn Stevens said.
However, he said that further hikes were likely.
Australia managed to ride out the global downturn without entering recession and in October became the first advanced economy to raise rates since the crisis.
"The equity market reacted positively this afternoon to the RBA's decision to keep rates on hold, with the ASX 200 adding approximately 0.2 percent after the release of the announcement," said Ben Potter, an analyst with IG Markets.
Wall Street was pushed 1.17 percent higher on Monday after the US Institute of Supply Management said its manufacturing index, also known as the purchasing managers index, climbed to 58.4 percent in January, the best number since 2004 and well ahead of the 50 percent that indicates growth.
A separate report showed consumer spending rose 0.2 percent in December, and personal incomes increased 0.4 percent.
Hopes for a strong recovery in the United States had been boosted Friday by data showing the world's biggest economy grew 5.7 percent in the fourth quarter, the strongest in six years.
Dealers now have an eye on Washington for figures on unemployment and job creation for January, which will give more clues on the strength of the rebound.
Many investors are also looking to a raft of corporate data to be released over the week.
Oil in Asia was higher in the morning due to the upbeat outlook for the US economy. New York's main futures contract, light sweet crude for March delivery, gained 26 cents to 74.69 dollars a barrel in the afternoon.
London's Brent North Sea crude was up 24 cents to 73.35 dollars.
Hong Kong gold closed at 1,103.50-1,104.50 US dollars an ounce, up from Monday's close of 1,083.50-1,084.50 US dollars.
The dollar rose to 90.79 yen in Tokyo afternoon trade from 90.59 in New York late Monday. The euro fell to 1.3912 dollars from 1.3931 but climbed to 126.37 yen from 126.21.
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