Asian stocks climb; Tokyo's Nikkei hits 10,000
Asian stock markets advanced, with Japan's benchmark Nikkei index rising above 10,000 for the first time in eight months amid cautious optimism that the region is slowly moving toward recovery.business Updated: Jun 11, 2009 12:55 IST
Asian stock markets advanced on Thursday, with Japan's benchmark Nikkei index rising above 10,000 for the first time in eight months amid cautious optimism that the region is slowly moving toward recovery.
Oil prices rose to new highs for the year, climbing above $72 a barrel.
Strong investment data from China overcame investors' qualms over an imminent resumption of initial public offerings on the mainland that some fear will flood the market with new shares.
Dismal export numbers from China also failed to dent investor confidence. Investors instead seemed to be banking on continued economic support from Beijing's multibillion dollar stimulus package, which helped lift investment in factories and real estate 32.9 percent in the first five months of the year, according to a state news agency report.
"Investors in China and Hong Kong believe the central government is ready to support economic growth, and this will create new opportunities," said Castor Pang, an analyst at Sun Hung Kai Financial in Hong Kong.
Tokyo's Nikkei 225 index was up 9.2 points, or 0.1 percent, at 10,000.69. It was the first time the index had breached the psychologically important 10,000 mark since Oct. 8.
Shanghai's Composite Index gained 8.25 points, or 0.3 percent, to 2,824.50. Hong Kong's benchmark bounced in volatile trading, adding 63.66 points, or 0.3 percent, to 18,849.32 by midday.
Australia's key index was up 0.6 percent, while the Philippines' benchmark jumped 2.7 percent.
Wall Street had a lackluster session Wednesday after U.S. government data showed the country's exports fell to a near three-year low in April.
A weak response to a government sale of $19 billion in 10-year Treasury notes also helped pull the Dow Jones industrial average down 24.04 points, or 0.3 per cent, to 8,739.02. The S&P 500 index slipped 3.28, or 0.4 per cent, to 939.15.
Wall Street looked poised to rebound Thursday: Dow futures were up 28 points, or 0.3 percent, to 8,781, while S&P futures were up 4.6 points, or 0.5 percent, to 945.1.
In Europe on Wednesday, Britain's FTSE 100 gained 0.7 per cent, Germany's DAX index rose 1.1 per cent, and France's CAC-40 rose 0.6 percent.
Oil prices climbed above $72 a barrel Thursday in Asia as investor optimism about a global economic recovery pushed crude to fresh highs for the year. Benchmark crude for July delivery rose was up 80 cents at $72.13 by midday Singapore time in electronic trading on the New York Mercantile Exchange.
In currencies, the dollar slipped to 97.81 yen from 98.19 late Wednesday, while the euro rose to $1.4045 from $1.3990.