Most equities markets gain on credit hopes

Asia-Pacific equities markets were mostly higher on Wednesday on sentiment from within the global banking sector that the worst of the credit market losses are over, as well as on rising demand for commodities as hedges against inflation after crude oil prices rose to yet another record high on Tuesday.

There were exceptions to the gains as the Hang Seng dropped 0.1 percent to 23,878.35 in Hong Kong and as the Shanghai Composite fell 1.69 percent to 3,291.6 on a reduced outlook from power companies.

The Sensex added 0.56 percent to 16,244.19 while the Kospi was up 0.94 percent to 1,758.56 and the Straits Times Index was 1.01 percent higher to 3,087.49.

In Australia the Sydney Ordinaries gained 1.26 percent to 5,534.6 and the S&P/ASX200 was up 1.29 percent to 5,470.3 while Taiwan’s Taiex was 1.58 percent higher to 9,066.04.

In Tokyo, the Nikkei 225 added 1.2 percent to 13,146.13 while the Topix index was up 1.27 percent to 1,271.88 and the Mothers market gained 0.72 percent to 594.33.

Banks were higher on the more positive sentiment regarding credit markets while the semiconductors sector saw gains on an optimistic outlook from within the US sector.

The real estate sector saw gains on hopes that an easing in the credit market will help property sales.

Europe’s markets were higher as well, with the FTSE Eurofirst 300 adding 1.65 percent to 1,302.78 while the CAC-40 was up 1.56 percent to 4,855.1 in Paris, the IBEX was 1.71 percent higher to 13,637.6 in Madrid, and the Dax gained 1.79 percent to 6,702.84 in Frankfurt.

There were only five losers on the CAC-40, covering the retail and telecommunications sectors, environmental services, optical equipment makers, and cosmetics manufacturers, which include the biggest loser of the session after a broker downgrade.

Other losers in Europe included some carmakers, the pharmaceuticals sector, medical equipment manufacturers, and stock exchange operators, while gainers included the semiconductors sector, which gained on sales forecasts in the sector, airlines, banks, and the steel sector.

In London, the FTSE 100 added 2.36 percent to 6,046.2 while the FTSE 250 gained 1.89 percent to 10,091.2.

Most in the oil and mining sectors were higher on price increases for commodities, including a new high for crude oil, while banks gained on analyst comment.

Retailers and most real estate developers were also higher, but most utilities were down on the session.

The New York equities markets were higher in mid-afternoon trade, with the Dow Jones Industrial Average up 1.28 percent to 12,520.42 while the Nasdaq Composite had gained 2.12 percent to 2,334.53 and the S&P 500 was 1.42 percent higher to 1,353.32.

The gains came despite a report from the Commerce Department that US housing starts were down 11.9 percent in March to the lowest level in 17 years.

Banks were higher on positive quarterly reports from within the sector while the semiconductors sector gained on more sales than expected and a positive full-year outlook from within the sector.

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