Investing.com - Asian stock markets rallied on Thursday, amid optimism Greece was moving closer to securing a debt swap deal with its private creditors and after data showed that Japan’s economy shrank significantly less than initially expected in the fourth quarter.
During late Asian trade, Hong Kong's Hang Seng Index jumped 1.1%, Australia’s ASX/200 Index advanced 0.65%, while Japan’s Nikkei 225 Index surged 2%.
Market sentiment firmed up after reports on Wednesday that a number of major European financial institutions had signed up to the bond swap deal, which is aimed at writing down 53.5% of the country's EUR177 billion debt.
The swap is vital for Greece to cut its debt and secure a bailout of EUR130 billion. Without the aid package, Greece could potentially default on its debt later this month.
Further lifting sentiment, a report in the Wall Street Journal said that the Federal Reserve was considering a new type of mortgage and Treasury bond-buying program to help stimulate the U.S. economy.
In Japan, the Nikkei rallied after official data showed that the nation’s economy shrank at a smaller rate than initially expected in the final three months of 2011. Japan’s economy contracted at an annualized rate of 0.7% in the fourth quarter, compared to preliminary data pointing to contraction of 2.3%.
Shares in the financial sector performed strongly. Investment banks Nomura Holdings and Daiwa Securities Group surged 4.7% and 4.3% respectively, while Mitsubishi UFJ Financial Group rose 2.7%.
Exporters with high exposure to the U.S. contributed to gains, after data Wednesday showed that the U.S. private sector added more jobs than expected last month.
Automakers Toyota and Nissan jumped 2.6% and 2.1% respectively, while digital camera maker Canon added 2.2%.
Japanese technology firms that are part of Apple’s supply chain were broadly higher after the consumer electronics giant unveiled its new iPad on Wednesday. Renesas Electronics climbed 4.1% and Toshiba shares gained 1.8%.
Elsewhere, shares in Hong Kong advanced with shares in the battered insurance sector regaining strength after two days oh heavy losses.
Insurance giant China Life Insurance gained 1.7%, Ping An Insurance Group surged 4.85% and China Pacific Insurance added 2.85%.
In Australia, the nation’s benchmark index underperformed other markets in the region after data showed that the unemployment rate ticked up to 5.2% from 5.1%.
Looking ahead, the outlook for European stock markets was mildly upbeat. The EURO STOXX 50 futures pointed to a modest gain of 0.4%, France’s CAC 40 futures added 0.4%, London’s FTSE 100 futures eased up 0.3%, while Germany's DAX futures pointed to a gain of 0.5% at the open.
Later in the day, the European Central Bank was to hold its policy setting meeting, which was to be followed by a closely watched press conference. Meanwhile, Germany was to release official data on industrial production and the U.S. was to produce government data on initial jobless claims.
During late Asian trade, Hong Kong's Hang Seng Index jumped 1.1%, Australia’s ASX/200 Index advanced 0.65%, while Japan’s Nikkei 225 Index surged 2%.
Market sentiment firmed up after reports on Wednesday that a number of major European financial institutions had signed up to the bond swap deal, which is aimed at writing down 53.5% of the country's EUR177 billion debt.
The swap is vital for Greece to cut its debt and secure a bailout of EUR130 billion. Without the aid package, Greece could potentially default on its debt later this month.
Further lifting sentiment, a report in the Wall Street Journal said that the Federal Reserve was considering a new type of mortgage and Treasury bond-buying program to help stimulate the U.S. economy.
In Japan, the Nikkei rallied after official data showed that the nation’s economy shrank at a smaller rate than initially expected in the final three months of 2011. Japan’s economy contracted at an annualized rate of 0.7% in the fourth quarter, compared to preliminary data pointing to contraction of 2.3%.
Shares in the financial sector performed strongly. Investment banks Nomura Holdings and Daiwa Securities Group surged 4.7% and 4.3% respectively, while Mitsubishi UFJ Financial Group rose 2.7%.
Exporters with high exposure to the U.S. contributed to gains, after data Wednesday showed that the U.S. private sector added more jobs than expected last month.
Automakers Toyota and Nissan jumped 2.6% and 2.1% respectively, while digital camera maker Canon added 2.2%.
Japanese technology firms that are part of Apple’s supply chain were broadly higher after the consumer electronics giant unveiled its new iPad on Wednesday. Renesas Electronics climbed 4.1% and Toshiba shares gained 1.8%.
Elsewhere, shares in Hong Kong advanced with shares in the battered insurance sector regaining strength after two days oh heavy losses.
Insurance giant China Life Insurance gained 1.7%, Ping An Insurance Group surged 4.85% and China Pacific Insurance added 2.85%.
In Australia, the nation’s benchmark index underperformed other markets in the region after data showed that the unemployment rate ticked up to 5.2% from 5.1%.
Looking ahead, the outlook for European stock markets was mildly upbeat. The EURO STOXX 50 futures pointed to a modest gain of 0.4%, France’s CAC 40 futures added 0.4%, London’s FTSE 100 futures eased up 0.3%, while Germany's DAX futures pointed to a gain of 0.5% at the open.
Later in the day, the European Central Bank was to hold its policy setting meeting, which was to be followed by a closely watched press conference. Meanwhile, Germany was to release official data on industrial production and the U.S. was to produce government data on initial jobless claims.