Investing.com - Asian stock markets were broadly higher on Wednesday, as appetite for riskier assets improved after ratings agency Moody’s affirmed Spain's government bond rating at its current level, easing fears over a downgrade to junk territory.
During late Asian trade, Hong Kong's Hang Seng Index rose 1%, Australia’s ASX/200 Index ended up 0.8%, while Japan’s Nikkei 225 Index rallied 1.2%.
Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Speculation that the debt-strapped nation was moving closer to requesting a bailout has helped support sentiment in recent sessions.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
European Union policymakers will hold a two-day summit in Brussels starting on Thursday to discuss ways to firewall and extinguish the debt crisis as well as Greece's steps towards fiscal recovery.
In Tokyo, the Nikkei climbed to a one-week high on the back of strong gains in exporters, which rose as the yen weakened against the U.S. dollar and the euro.
A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Shares in consumer electronic firms Toshiba and Sony jumped 1.8% and 2% respectively, while automakers Toyota and Honda rose 1% and 0.5% apiece.
Index heavyweight Softbank saw shares rally 5.6%, adding to a 9.6% surge a day earlier, after CEO Masayoshi Son assured investors that the move would not dilute Softbank shares. Softbank shares are still down nearly 13% since last Friday.
Shares in Japan found further support after the Nikkei reported that Japanese Prime Minister Yoshihiko Noda was likely to call an emergency cabinet meeting Wednesday to discuss stimulus measures for the Japanese economy.
Elsewhere, in Hong Kong, the Hang Seng rose to a five-month high, as investors looked ahead to Chinese third quarter growth figures due out on Thursday to gauge whether the world second largest economy is heading towards a hard or a soft landing.
Official data released earlier in the week showed that Chinese consumer prices rose 1.9% in September from the year-ago period, down from 2.0% in August, while producer price inflation fell 3.6%.
The data came after a report over the weekend showed that Chinese exports grew 9.9% on the year in September, increasing from 2.7% in August. Imports rose 2.4% from a year earlier.
Shares in index heavyweight HSBC Holdings jumped 2%, amid ongoing optimism that Europe will find a way out of its debt troubles.
Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Meanwhile, in Australia, the benchmark ASX/200 Index closed just below a 15-month high, as gains in miners supported the market.
BHP Billiton saw shares rise 1.15% after it said it would boost iron ore output by 5% by the end of June 2013. Rivals Rio Tinto and Fortescue Metals Group advanced 1.7% and 5.7% respectively.
In Europe, regional markets were mildly higher after the open, after ratings agency Moody’s decided not to cut Spain’s credit rating to junk status, boosting risk appetite ahead of Thursday’s European Union summit.
The EURO STOXX 50 rose 0.5%, France’s CAC 40 added 0.15%, London’s FTSE 100 eased up 0.15%, while Germany's DAX advanced 0.15%.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
During late Asian trade, Hong Kong's Hang Seng Index rose 1%, Australia’s ASX/200 Index ended up 0.8%, while Japan’s Nikkei 225 Index rallied 1.2%.
Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Speculation that the debt-strapped nation was moving closer to requesting a bailout has helped support sentiment in recent sessions.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
European Union policymakers will hold a two-day summit in Brussels starting on Thursday to discuss ways to firewall and extinguish the debt crisis as well as Greece's steps towards fiscal recovery.
In Tokyo, the Nikkei climbed to a one-week high on the back of strong gains in exporters, which rose as the yen weakened against the U.S. dollar and the euro.
A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Shares in consumer electronic firms Toshiba and Sony jumped 1.8% and 2% respectively, while automakers Toyota and Honda rose 1% and 0.5% apiece.
Index heavyweight Softbank saw shares rally 5.6%, adding to a 9.6% surge a day earlier, after CEO Masayoshi Son assured investors that the move would not dilute Softbank shares. Softbank shares are still down nearly 13% since last Friday.
Shares in Japan found further support after the Nikkei reported that Japanese Prime Minister Yoshihiko Noda was likely to call an emergency cabinet meeting Wednesday to discuss stimulus measures for the Japanese economy.
Elsewhere, in Hong Kong, the Hang Seng rose to a five-month high, as investors looked ahead to Chinese third quarter growth figures due out on Thursday to gauge whether the world second largest economy is heading towards a hard or a soft landing.
Official data released earlier in the week showed that Chinese consumer prices rose 1.9% in September from the year-ago period, down from 2.0% in August, while producer price inflation fell 3.6%.
The data came after a report over the weekend showed that Chinese exports grew 9.9% on the year in September, increasing from 2.7% in August. Imports rose 2.4% from a year earlier.
Shares in index heavyweight HSBC Holdings jumped 2%, amid ongoing optimism that Europe will find a way out of its debt troubles.
Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Meanwhile, in Australia, the benchmark ASX/200 Index closed just below a 15-month high, as gains in miners supported the market.
BHP Billiton saw shares rise 1.15% after it said it would boost iron ore output by 5% by the end of June 2013. Rivals Rio Tinto and Fortescue Metals Group advanced 1.7% and 5.7% respectively.
In Europe, regional markets were mildly higher after the open, after ratings agency Moody’s decided not to cut Spain’s credit rating to junk status, boosting risk appetite ahead of Thursday’s European Union summit.
The EURO STOXX 50 rose 0.5%, France’s CAC 40 added 0.15%, London’s FTSE 100 eased up 0.15%, while Germany's DAX advanced 0.15%.
Later in the day, the U.S. was to publish government data on building permits and housing starts.