Tokyo equities gain; Hang Seng, Sensex each add over 6 percent

Tokyo’s equities markets rose to their highest level in 2 weeks on Tuesday after new data from the US National Association of Realtors showed that existing home sales were up by 2.9 percent in February against an expectation that they would decline by 0.8 percent. The gain in home sales indicated that Americans are still willing to spend money despite the economic slowdown in the United States. The Nikkei 225 added 12,745.22 while the Topix index was up 1.54 percent to 1,242.98 and the Mothers market of small and mid-caps gained 1.26 percent to 607.08. The electronics sector saw gains, while steel and glassmakers, traders, and the real estate sector also were higher on the session.

Most other Asia-Pacific region equities markets were also higher, with banks up after JPMorgan Chase (NYSE: JPM; TYO: 8634) raised its bid for Bear Stearns (NYSE: BSC) to around $10 per share. The Shanghai Composite added 0.09 percent to 3,629.62d while South Korea’s Kospi index was up 1.19 percent to 1,674.93 and the Straits Times Index was 2.47 percent higher to 3,000.19. In Australia the Sydney Ordinaries gained 3.34 percent to 5,335.7 and the S&P/ASX200 was up 3.72 percent to 5,318.4. The Sensex was 6.07 percent higher to 16,217.49 while the Hang Seng jumped 6.43 percent to 16,464.52. The main exception was in Taiwan, where the Taiex dropped 0.79 percent to 8,795.09.

European markets were higher as banks advanced on the news of a higher bid for Bears Stearns. The pan-European FTSE Eurofirst 300 was up 3.12 percent to 1,264.94. The Dax added 3.24 percent to 6,524.71 while the CAC-40 was 3.49 percent to 4,692 and the IBEX gained 3.63 percent to 13,434.2. There was only one loser on the Dax and two decliners on the CAC-40, all in the utilities sector. Besides banks, big gainers on the session included IT services, retailers, the telecommunications and semiconductors sectors, insurers, and the aerospace sector.

In London, the FTSE 100 added 3.53 percent to 5,689.1 while the FTSE 250 gained 3.66 percent to 9,794.6. Banks were higher while miners gained on gains in commodities prices. Other gainers included house builders and the real estate sector as well as insurers, the retail sector and media groups. The tobacco sector was among the biggest decliners on the 100.

Wall Street was mixed in early afternoon trade amid the news that consumer confidence in the US dropped from 76.4 in February to 64.5 in March according to the Conference Board and home prices that were down 11.4 percent in January from the same month last year. While the Dow Jones Industrial Average was down 0.08 percent to 12,538.38, the Nasdaq Composite had added 0.38 percent to 2,335.6 and the S&P 500 was up 0.29 percent to 1,353.74. Banks were mixed but mostly lower, while airlines and oil refiners were both mixed on drops in oil prices. Satellite radio was lower after the Justice Department approved a merger in the sector. There were gains among the internet sector but declines in the software sector on speculation that Microsoft (NAS: MSFT) will raise its bid for Yahoo (NAS: YHOO).

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