Most equities markets gain on credit market hopes

Global equities markets were higher on Wednesday on hopes that credit markets are pulling out of recent troubles. Some of the gains in the Asia-Pacific region were substantial, with the biggest gains coming in Tokyo where the Nikkei 225 added 4.21 percent to 13,189.36 and the Topix index was up 4.19 percent to 1,282.07 while the Mothers market of small and mid-caps was 1.77 percent higher to 623.25. The Tokyo markets were helped by a dollar that was stronger in relation to the yen. Brokers and the real estate sector were higher, as were exporters such as carmakers and the electronics sector.

Elsewhere in the Asia-Pacific region, the Shanghai Composite was up 0.56 percent to 3,347.88 while the Sensex was 0.79 percent higher to 15,750.4 and the Taiex added 2.2 percent to 8,605.32. South Korea’s Kospi was up 2.35 percent to 1,742.19. In Australia, the Sydney Ordinaries gained 2.41 percent to 5,544.9 and the ASX/S&P200 was 2.64 percent higher to 5,502.9. The Straits Times Index added 2.56 percent to 3,124.61 while the Hang Seng jumped 3.18 percent to 23,872.43.

Europe’s markets were also higher on the session, with the pan-European FTSE Eurofirst 300 up 1.18 percent to 1,317.84. The Dax was 0.85 percent higher to 6,777.44 while the CAC-40 added 0.94 percent to 4,911.97 and the IBEX gained 1.02 percent to 13,838.7. Banks and the semiconductors sector were among the biggest winners of the day, while insurers and hotel operators were also higher. Declines came in the automobile manufacturing sector, as well as among airlines, the pharmaceuticals sector and software groups.

In London, the FTSE 100 was up 1.08 percent to 5,915.9 while the FTSE 250 gained 0.35 percent to 10,372. Miners were up on a share price upgrade in the sector as well as advances in some metals prices, while the pharmaceuticals sector saw gains on a broker upgrade in the sector. Most banks were also higher, as were insurers. Real estate developers and the retail sector were mixed, while most utilities saw declines.

The New York markets were mixed in early afternoon trade. The Dow Jones Industrial Average was down 0.31 percent to 12,615.36 while the Nasdaq Composite added 0.07 percent to 2,364.45 and the S&P 500 dropped 0.75 percent to 1,369.43. The markets were initially up after Federal Reserve Chairman Ben Bernanke said he does not expect other investment banks to go the way of Bear Stearns (NYSE: BSC), even though he also said that the Gross Domestic Product could shrink slightly in the first half of the year. Declines mostly came on profit taking after Tuesday’s huge gains. The retail sector was higher on positive results in the sector. The oil sector was also higher, but the pharmaceuticals sector was mixed.

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