Global equities see gains; Tokyo declines

Asia-Pacific equities markets were higher on Tuesday after Standard & Poor’s retained good credit ratings on two top bond insurers. South Korea’s Kospi index traded even at 1,709.13. The Taiex was up 0.26 percent to 8,307.67 while the FTSE Straits Times Index was 0.42 percent higher to 3,077.83. In Australia the S&P/ASX200 added 0.79 percent to 5,666.1 and the Sydney Ordinaries gained 0.81 percent to 5,745.8. India’s Sensex was up 0.88 percent to 17,806.19. The Shanghai Composite was 1.09 percent higher to 4,238.18 while the Hang Seng added 1.92 percent to 23,714.75.

The exception to gains in the region was in Tokyo, where the Nikkei 225 was down 0.65 percent to 13,824.72, the Topix index fell 0.6 percent to 1,347.47 and the Mothers market dropped 1.08 percent to 679.82. The declines came on a report that consumer sentiment is down there. Retailers declined on the news, while utilities were lower on speculation that they will not be able to pass higher raw materials costs on to consumers due to government rules limiting their ability to do so. Mobile-phone operators fell on broker downgrades in the sector. The real estate sector, however, saw gains on the good news about bond insurers.

The news on bond insurers’ credit ratings also helped European equities to gains on the session. The pan-European FTSE Eurofirst 300 was up 1.41 percent to 1,361.18. The Paris CAC-40 was 1.09 percent higher while the Dax added 1.5 percent to 6,985.97 and the IBEX gained 2.13 percent to 13,436.6. Banks and insurers were higher, as were airlines and the automobile manufacturing sector. Hotels operators, cosmetics manufacturers, and the food and beverage sector all saw declines.

In London, the FTSE 100 was up 1.47 percent to 6,087.4 while the FTSE 250 gained 1.06 percent to 10,383.9. Banks were up on profits in the sector. Insurers were also higher. Retailers and commodities-related shares were mixed, while utilities were lower on the session.

Wall Street saw gains in early afternoon trade. The Dow Jones Industrial Average was 1.12 percent higher to 12,710.89 while the Nasdaq Composite added 1.17 percent to 2,354.62 and the S&P 500 gained 1,384.15. The gains came after early declines on reports that wholesale prices were up more than had been expected and that consumer confidence is on the decline. The early slide turned around after IBM (NYSE: IBM) announced approval of a stock buyback worth up to $15 billion. The retail sector was up on quarterly reports, while bond insurers gained on the credit ratings news. Homebuilders saw substantial advances on speculation that prices have fallen enough in draw interest from potential buyers, even though foreclosures were up by 57 percent in January.

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