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Asia-Pacific stocks rise on Wall Street's lead
AFP - 2 hours 30 minutes ago
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Asia-Pacific stocks rise on Wall Street's lead
TOKYO (AFP) - – Asian stock markets mostly edged higher on Tuesday after a strong lead from Wall Street and positive US earnings data.
Japanese shares were up 0.13 percent by noon, although many investors stayed on the sidelines ahead of earnings results from major Japanese companies later this week, brokers said.
The benchmark Nikkei index of the Tokyo Stock Exchange gained 12.77 points to reach 9,516.43, while the Topix index of first-section shares rose 0.18 percent.
Exporters such as Canon and Toyota sagged, however, as the yen's strength continues to complicate their prospects.
Sony, Panasonic and Nintendo will release April-June results on Thursday, followed by Hitachi and Honda on Friday.
Sydney's S&P/ASX 200 index was up 0.51 percent at lunch, led by banks as well as the major miners, which are benefiting from a recent surge in prices of base metals such as iron ore.
Regional markets "are very much in a 'glass half full' frame of mind at present," said Mike Jones, currency strategist at Bank of New Zealand.
"Whether or not this continues, and hence whether the rally in risk-sensitive assets can be sustained, will depend on the strength of upcoming economic data," he said.
Hong Kong was flat by lunch with the benchmark Hang Seng Index down 0.03 percent at 20,833.52, and trading volumes were light.
Shanghai dipped 0.4 percent amid uncertainty about whether the authorities will ease economic tightening measures, particularly in the property market, after data this month showed a slowdown in growth.
China International Capital Corporation cautioned that the Shanghai market's recent rally -- it rose 6.1 percent last week -- was "based on speculation rather than fundamentals, (so) could be transient".
Earlier, the Dow Jones Industrial Average jumped 100.81 points (0.97 percent) to a two-month high of 10,525.43, while the tech-rich Nasdaq gained 1.19 percent.
Wall Street was boosted by a surge in new home sales and robust corporate earnings, although sceptics took the homes data with a pinch of salt, noting it was off rock-bottom levels.
The Commerce Department said new home sales had increased 23.6 percent to 330,000 units from a revised May rate of 267,000, a record low.
Amid a swathe of positive corporate earnings, courier FedEx, an economic bellwether, raised its first-quarter and full-year earnings forecasts, resulting in a 5.61 percent jump for its shares.
But the dollar moved narrowly in Asia in the absence of fresh trading pegs.
It changed hands at 86.92 yen in Tokyo morning trade against 86.86 yen in New York late Monday. The euro bought 1.2981 dollars, marginally down from 1.2990 dollars, and 112.85 yen, unchanged from New York.
Oil inched marginally higher, restrained by lingering worries about the US and eurozone economies.
New York's main contract, light sweet crude for September delivery, gained eight cents to 79.06 dollars a barrel and Brent North Sea crude, also for September, was 10 cents higher at 77.60 dollars.
"There is not enough confidence in the US and Europe recovery.... A lot of people are getting slightly concerned about what's happening," David Johnson, a Hong Kong-based oil analyst with the Royal Bank of Scotland, told AFP.
Gold opened at 1,184.50-1,185.50 US dollars an ounce in Hong Kong, down from Monday's close of 1,192.00-1,193.00 US dollars an ounce.
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