Asia-pacific markets see gains on China growth

Most Asia-Pacific equities markets were higher again on Thursday after US legislators said they are close to agreeing on an economic stimulus package and on the news that China’s economy grew by 11.2 percent in the fourth quarter. There were declines, however. In India, the Sensex dropped 2.12 percent to 17,221.74. Meanwhile, the Hang Seng index dropped 2.29 percent to 23,539.27 following the news of a trading scandal involving French bank Societe Generale (Euronext: GLE).

Among gainers on the session, the Shanghai Composite added 0.31 percent to 4,717.73. In Taiwan, the Taiex was up 1.47 percent to 7,517.05 while South Korea’s Kospi index was 2.12 percent higher to 1,663. The FTSE Straits Times Index gained 2.23 percent to 3,050.9. In Australia, the Sydney Ordinaries added 2.94 percent to 5,580.4 and the S&P/ASX200 jumped 3.11 percent to 5,580.4.

Tokyo’s markets also saw gains. The Nikkei 225 was up 2.06 percent to 13,092.78 while the Topix index was 3.76 percent higher to 1,284.45 and the Mothers market of small and mid-caps added 3.56 percent to 641.93. Banks and insurers saw gains on the possibility that a rumored bailout of US bond insurers could be good for the financial system worldwide. The real estate sector saw substantial gains, but there were declines in the semiconductors sector.

European markets saw substantial gains after a survey found that business confidence had risen more than expected. The FTSE Eurofirst 300 was up 5.31 percent to 1,329.48. The Dax added 5.93 percent to 6,821.07, a gain of 381 points, while the CAC-40 was 6.01 percent higher to 4,915.29 and Madrid’s IBEX gained 6.95 percent to 13,106.7. There was only one loser on the CAC-40, in the banking sector, and that loss was related to a trading scandal. On the Dax, meanwhile, the biggest loser was a medical devices manufacturer, while some of the biggest gainers were in the retail and insurance sectors.

London markets saw their biggest one-day gains in nearly 5 years. The FTSE 100 added 4.75 percent to 5,875.8 and the FTSE 250 gained 3.82 percent to 9,856.3. The big winners on the day there were in the financial services sector, including banks and mortgage lenders.

Wall Street made gains near the end of the trading day. Within a half hour of the close, the Dow Jones Industrial Average was 0.75 percent higher to 12,362.03 while the Nasdaq Composite was up 2.83 percent to 2,358.72 and the S&P 500 had gained 0.83 percent to 1,349.68. Good news helped, with progress on a stimulus package and a decline in first-time unemployment claims last week. Despite general gains, carmakers and internet auctioneers were down on quarterly reports and projections, while bond insurers fell on ratings downgrades.

Story link: Asia-pacific markets see gains on China growth