AFP
Tokyo
Asian markets mostly pushed higher yesterday, taking a lead from fresh gains in New York and Europe in response to reports that the European Central Bank would widen its stimulus programme.
Speculation about further monetary easing in the eurozone pushed the euro lower, while the dollar gave up some of its US gains in early Japanese trade.
Tokyo—which surged almost 4% Monday before losing 2% Tuesday—jumped 2.64%, or 391.49 points, to finish at 15,195.77.
Sydney added 1.14%, or 60.9 points, to end at 5,385.9 and Seoul closed 1.13% higher, gaining 21.69 points to 1,936.97. Hong Kong tacked on 1.37%, or 315.39 points, to end at 23,403.97.
But Shanghai fell 0.56%, or 13.10 points, to 2,326.55.
Singapore and Kuala Lumpur were closed for public holidays.
In other markets, Wellington closed up 0.89%, or 46.58 points, at a record high of 5,279.70; software firm Xero added 5.41% to NZ$16.76, while telecom giant Spark rose 0.85% to NZ$2.96.
Taipei advanced 1.09%, or 94.19 points, to 8,748.83; Taiwan Semiconductor Manufacturing Co rose 3.2% to Tw$129.0 while Hon Hai was 0.53% higher at Tw$94.0.
Manila added 1.22%, or 86.19 points, to 7,154.22; Philippine Long Distance Telephone Co was unchanged at 3,208 pesos while Bloomberry Resorts was up 4.32% at 14.50 pesos.
Jakarta ended up 0.89%, or 44.98 points, at 5,074.32; tin miner Timah gained 3.06% to 1,180 rupiah, while food manufacturer Indofood Sukses Makmur slipped 0.37% to 6,775 rupiah.
Bangkok rose 0.43%, or 6.58 points, to 1,532.72; coal producer Banpu added 2.80% to 27.50 baht, while Bumrungrad Hospital gained 2.40% to 128baht.
European markets on Tuesday were broadly higher after Chinese data showed the economy growing quicker than expected, even though it was at its slowest pace since the start of 2009.
They moved higher in Europe and on Wall Street later in the day after a report that the ECB could expand its bond-buying scheme to include corporate notes.
The ECB’s present quantitative easing programme is limited to covered bonds and asset-backed securities, but the corporate paper market is much larger and better established.
If followed through early next year, as some reports suggest, the move could further push down long-term interest rates in the euro area and better encourage bank lending.
On Wall Street, the three main indexes Tuesday posted a third straight day of hefty gains. The Dow rose 1.31% and the S&P 500 jumped 1.96%.
The Nasdaq rallied 2.40%, helped by a strong Apple earnings report. Apple, the biggest US company by market capitalisation, rose 2.7% as fourth-quarter profits jumped 13% to $8.5bn on strong iPhone sales.
European stocks also rallied, with London’s FTSE 100 up 1.68%, the Paris CAC 40 2.25% higher and the DAX 30 in Frankfurt surging 1.94%.
This week’s gains have calmed nerves after last week’s volatility, which was fuelled by worries about the global economy, although analysts say there is ongoing anxiety as the eurozone, China and Japan continue to struggle.
Expectations of further easing weighed on the euro, which dipped to $1.2714 in New York Tuesday from 1.2819 earlier in the day in Asia. In afternoon Tokyo exchanges Wednesday the single currency bought $1.2725.
The euro was trading at ¥135.91 against ¥136.04 in the US and well down from ¥136.70 earlier Tuesday.
“The slippage in the euro-dollar rate was exacerbated by comments from German Finance Minister Wolfgang Schaeuble that a lower euro exchange rate helps the (German) economy,” National Australia Bank said in a note.
The dollar also struggled to hold on to its US gains, dipping to ¥106.90 from ¥106.99. However, the greenback was still up from the ¥106.56 in Asia Tuesday.
On oil markets US benchmark West Texas Intermediate for December delivery eased 16 cents to $82.65 a barrel. Brent North Sea crude for December added 31 cents to $86.53.
Gold was at $1,248.88 an ounce against $1,248.17 late Tuesday.
