Investing.com - Asian stock markets were sharply higher on Friday, as investor confidence strengthened broadly on reports European leaders agreed that euro zone banks could be recapitalized without adding to government debt.
During late Asian trade, Hong Kong's Hang Seng Index surged 2.34%, Australia’s ASX/200 Index jumped 1.23%, while Japan’s Nikkei 225 Index rallied 1.5%.
Market sentiment found support after euro zone leaders agreed to emergency action to lower borrowing costs of Italy and Spain, saying euro area rescue funds could be used to stabilise bond markets without forcing countries that comply with European Union budget rules.
Speaking at a summit in Brussels, the leaders also said they would speed up plans to create a single supervisor to oversee the euro zone's banks, which will be considered "as a matter of urgency" by the end of 2012.
In Tokyo, the Nikkei rallied sharply following the news, shrugging off weak industrial production data released earlier in the session.
A preliminary report showed that industrial production in Japan fell more-than-expected in May, tumbling 3.1% after a 0.2% decline the previous month. Analysts had expected industraial production to fall 2,7% the previous month.
Financial stocks were broadly higher as shares in Nomura Holdings, Japan's top investment bank, surged 3.89%, while Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group advanced 1,61% and 0.93% respectively.
Automakers also added to gains, with Toyota up 2.57% and Nissan jumping 1.91%. Canon shares rallied 1.77%, while Panasonic rose 1.90%.
Elsewhere, shares in Hong Kong were sharply higher, as investors remained focused on the second day of European talks in Brussels.
Heavyweights HSBC Holdings and CNOOC gained 1.10% and 2.01% respectively, while Hutchison Whampoa surged 2.69%.
Meanwhile, shares in Australia also rallied, supported by gains in miners.
Newcrest Mining and Rio Tinto gained 2.69% and 2.66% respectively, while BHP Billiton jumped 2.47%.
Looking ahead, the outlook for European stock markets was upbeat, supported by the recent progress announced in Brussels, but investors remained cautious as political divisions remained on ways to tackle the euro zone's debt crisis in the long term.
The EURO STOXX 50 futures pointed to a sharply higher open, France’s CAC 40 futures rallied 2.01%, London’s FTSE 100 futures jumped 1.43%, while Germany's DAX futures pointed to a gain of 1.75% at the open.
Later in the day, the euro zone was to release preliminary data on consumer price inflation, while the U.S. was to publish data on personal spending and on manufacturing activity in Chicago, followed by revised data on consumer sentiment.
During late Asian trade, Hong Kong's Hang Seng Index surged 2.34%, Australia’s ASX/200 Index jumped 1.23%, while Japan’s Nikkei 225 Index rallied 1.5%.
Market sentiment found support after euro zone leaders agreed to emergency action to lower borrowing costs of Italy and Spain, saying euro area rescue funds could be used to stabilise bond markets without forcing countries that comply with European Union budget rules.
Speaking at a summit in Brussels, the leaders also said they would speed up plans to create a single supervisor to oversee the euro zone's banks, which will be considered "as a matter of urgency" by the end of 2012.
In Tokyo, the Nikkei rallied sharply following the news, shrugging off weak industrial production data released earlier in the session.
A preliminary report showed that industrial production in Japan fell more-than-expected in May, tumbling 3.1% after a 0.2% decline the previous month. Analysts had expected industraial production to fall 2,7% the previous month.
Financial stocks were broadly higher as shares in Nomura Holdings, Japan's top investment bank, surged 3.89%, while Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group advanced 1,61% and 0.93% respectively.
Automakers also added to gains, with Toyota up 2.57% and Nissan jumping 1.91%. Canon shares rallied 1.77%, while Panasonic rose 1.90%.
Elsewhere, shares in Hong Kong were sharply higher, as investors remained focused on the second day of European talks in Brussels.
Heavyweights HSBC Holdings and CNOOC gained 1.10% and 2.01% respectively, while Hutchison Whampoa surged 2.69%.
Meanwhile, shares in Australia also rallied, supported by gains in miners.
Newcrest Mining and Rio Tinto gained 2.69% and 2.66% respectively, while BHP Billiton jumped 2.47%.
Looking ahead, the outlook for European stock markets was upbeat, supported by the recent progress announced in Brussels, but investors remained cautious as political divisions remained on ways to tackle the euro zone's debt crisis in the long term.
The EURO STOXX 50 futures pointed to a sharply higher open, France’s CAC 40 futures rallied 2.01%, London’s FTSE 100 futures jumped 1.43%, while Germany's DAX futures pointed to a gain of 1.75% at the open.
Later in the day, the euro zone was to release preliminary data on consumer price inflation, while the U.S. was to publish data on personal spending and on manufacturing activity in Chicago, followed by revised data on consumer sentiment.