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| Shipping containers are stacked at the Yangshan deep water port in Shanghai. China’s trade surplus shrank in 2011, prompting speculation that Beijing will further loosen monetary policy to support growth in the world’s second-biggest economy |
Asian shares were mostly higher yesterday following another Wall Street rally caused by positive corporate earnings and upbeat US sentiment, although ongoing European debt woes continue to weigh.
Markets and the euro were given some support by news that ratings agency Fitch was not planning to strip France of its top triple-A rating for 2012, easing persistent concerns over Europe’s fiscal woes.
Tokyo closed up 0.30%, or 25.62 points, at 8,447.88 and Sydney added 0.85%, or 35.3 points, to close at 4,187.5 while Hong Kong was 0.78% higher, adding 147.66 points to end at 19,151.94.
However, Seoul shed 0.41%, falling 7.67 points to close at 1,845.55 and Shanghai slipped 0.42%, or 9.69 points, to 2,276.05 following two sessions that saw it add more than 5%.
“Within the last seven days we have witnessed economic data which has been supportive of traders branching into risk assets,” said Tim Waterer, a senior foreign exchange dealer at CMC Markets, in a note, according to Dow Jones Newswires.
US aluminium giant Alcoa kicked off the corporate earnings season, saying full-year profit more than doubled in 2011 to $611mn and delivered an upbeat demand outlook, although it also posted a fourth-quarter loss of
$191mn on declining revenues.
The news boosted Wall Street, as the Dow rose 0.56% to its highest finish since July, while the tech-rich Nasdaq added 0.97% and the broader S&P 500 advanced 0.89%.
US traders also cheered as China’s trade surplus shrank in 2011, prompting speculation that Beijing will further loosen monetary policy to support growth in the world’s second-biggest economy.
Continuing to buoy sentiment was data earlier this week showing a 9.9% surge in US consumer credit in November, the biggest increase in a decade, while credit card spending and loans both rose, adding to hopes the US economy is getting back on track.
Investors also welcomed Fitch Ratings’ comments that it would likely keep France’s top-notch rating for now, providing a little respite to dealers who had feared such a move against one of the eurozone’s key players.
However, the region’s debt crisis was still playing on dealers’ minds as leaders hold fresh talks aimed at addressing the issue, with a European Central Bank (ECB) policy
meeting set for Thursday.
Markets were also cautious ahead of debt auctions by struggling Spain and Italy, also starting today.
Italy was the most worrying of the embattled eurozone countries and could see its credit rating cut this month, Fitch said.
Elsewhere in Asia, Taipei ended 0.13% higher, climbing 9.34 points to 7,188.21; Manila closed 1.86%, or 84.78 points, higher at 4,645.86, another record high for the index and Wellington gained 0.26%, or 8.52 points, to 3,236.53.