Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Asia stocks surge on ECB plan; Nikkei rallies 2.31%

Stock Markets Sep 07, 2012 02:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

 

 
CAJ
+0.87%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NWSA
-2.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NWS
-2.30%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FTNMX...
+0.94%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
+0.73%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
2628
+2.34%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Investing.com - Asian stock markets rose sharply during late Asian trade on Friday, as investor confidence strongly improved after the European Central Bank outlined on Thursday its bond-buying program designed to help stem the debt crisis in the euro zone.

During late Asian trade, Hong Kong's Hang Seng Index surged 2.65%, Australia’s ASX/200 Index rose 0.30%, Japan’s Nikkei 225 Index rallied 2.31%.

On Thursday, ECB President Mario Draghi unveiled a new bond purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.

Under the terms of the plan, the ECB would buy unlimited amounts of government bonds of up to three years in maturity, as long as the country in question is signed up to the OMT program and agrees to economic reforms.

Meanwhile, investors were eyeing the release of a key U.S. employment report later in the day, after upbeat data painted a rather bright picture of the sector on Thursday, dampening expectations for fresh easing measures by the Federal Reserve in the near future.

In Tokyo, the Nikkei soared amid hopes the ECB' bond-buying plan will help ease the effects of the euro zone's sovereign debt crisis on Japan's export-oriented economy.

NAND chipmaker Toshiba saw shares surge 6.84% after OCZ Technology Group said it faced a significant shortage in certain NAND flash components used in making some of its products.

Separately, Apple has reportedely reduced its order for memory chips for its new iPhone from Samsung Electronics, picking Toshiba and other competitors as its suppliers instead.

Also on the upside, camera and printer maker, Canon rallied 4.08% after the Nikkei business daily said the company is aiming to increase its China sales fourfold to around USD10 billion by 2017.

Meanwhile, shares in Hong Kong also posted strong gains, after the China Securities Journal reported earlier that regulators approved 30 infrastructure projects, adding to signs that Beijing is accelerating spending to bolster growth.

Insurers were among the session's top gainers, as shares in China Life Insurance climbed 4.16% and Ping An advanced 4.14%.

Energy stocks were also broadly higher, led by China Shenhua, up 6.77%, while PetroChina jumped 1.75%.

Elsewhere, Australian shares were boosted by the ECB plan, although gains were limited by official data showing that Australia's trade deficit widened more-than-expected to AUD0.56 billion in July from a deficit of AUD0.23 billion the previous month.

Mining stocks led gains, as shares in Rio Tinto and BHP Billiton rallied 4.47% and 2.27% respectively, while gold miner Newcrest Mining saw shares jump 1.29% after BlackRock said it increased its holdings in the company by acquiring 17,723 common shares at a price of USD25.27 per share.

On the downside, Consolidated Media Holdings dropped 0.58%, after it agreed to back a revised takeover offer from Rupert Murdoch's News Corp of AUD2 billion, giving News Corp a greater share of the nation's pay-TV market.

Looking ahead, European stock futures pointed to a higher open.

The EURO STOXX 50 futures pointed to a 0.51% increase, France’s CAC 40 futures climbed 0.52%, London’s FTSE 100 futures added 0.32%, while Germany's DAX futures pointed to a 0.40% gain.

Later in the day, Germany was to publish official data on industrial production, while the U.S. was to release a report on non-farm payrolls and the unemployment rate.


Asia stocks surge on ECB plan; Nikkei rallies 2.31%
 

Related Articles

Toyota Motor lowers October output target by 6.3%
Toyota Motor lowers October output target by 6.3% By Reuters - Sep 30, 2022

TOKYO (Reuters) -Toyota Motor Corp on Friday lowered its October production target by 6.3% to about 750,000 vehicles because of a shortage of semiconductors. The announcement...

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
Continue with Google
or
Sign up with Email