Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Asia stocks advance but euro zone fears cap gains; Nikkei adds 0.1%

Stock MarketsMay 28, 2012 02:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Investing.com - Asian stock markets edged higher on Monday, after opinion polls in Greece showed conservative parties hold the lead in next month’s national elections, while growing fears over Spain’s deteriorating financial situation capped gains.

During late Asian trade, Hong Kong's Hang Seng Index rose 0.35%, Australia’s ASX/200 Index climbed 0.95%, while Japan’s Nikkei 225 Index added 0.1%.

Market sentiment firmed up after an opinion poll in Greece indicated that the country’s pro-bailout parties were leading the polls ahead of elections, due to be held on June 17.

Global equities have been rattled in recent weeks as fears over the possibility of a Greek exit from the euro zone dominated market sentiment.

However, growing concerns over the fiscal health of Spain weighed after ratings agency Standard & Poor’s cut the ratings on five Spanish banks on Friday, and said it believes the country is entering a double-dip recession.

Adding to the gloomy environment, the president of Catalonia, Spain's wealthiest autonomous region, said on Friday it had few options to refinance over EUR13 billion in debt due this year.

Furthermore, a government source said on Sunday that Spain may recapitalize its fourth-largest bank, Bankia, which last week asked for EUR19 billion in funding.

In Tokyo, the Nikkei steadied after eight consecutive weeks of losses, with index heavyweights Fanuc and Fast Retailing supporting the benchmark.

Fanuc shares rose 2% after Morgan Stanley raised its price target on the industrial robot maker and said a recent correction in the stock was overdone.

Meanwhile, Fast Retailing shares climbed 2.15%.

On the downside, Renesas Electronics shares plunged 10.6% after weekend reports that the firm planned to cut up to 14,000 jobs and raise nearly JPY100 billion in capital. NEC, Renesas’s biggest shareholder, tumbled 9.25%.

The Nikkei is down more than 16% since hitting a one-year high on March 27, after rallying more than 19% in the first three months of the year, as China’s economic growth slowed and on renewed concern about Europe’s debt crisis.

Elsewhere, in Hong Kong, shares in property developers and financial sector stocks were mostly higher, supported by hopes for fresh monetary easing by China to prop up growth in the world’s second largest economy.

Bank of China shares added 2.1% and Sino Land shares rose 1.5%, but shares in Hang Lung Properties dropped 1%.

Meanwhile, shares in Australia outperformed the region, as investors returned to the market to pick up shares of battered resource sector stocks.

Gold miner Newcrest Mining rose 2.6%, while BHP Billiton and Rio Tinto added 1.65% and 1.85% respectively.

Looking ahead, the outlook for European stock markets was upbeat, after weekend opinion polls in Greece indicated that pro-bailout party New Democracy was leading the polls ahead of a general election next month.

The EURO STOXX 50 futures pointed to a gain of 1%, France’s CAC 40 futures rose 0.95%, London’s FTSE 100 futures advanced 0.75%, while Germany's DAX futures pointed to a gain of 1.05% at the open.

Trade looked likely to remain quiet on Monday, with some markets in Europe close for holidays, while U.S. markets were to remain closed for the Memorial Day holiday.

Asia stocks advance but euro zone fears cap gains; Nikkei adds 0.1%
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email