Asian stock markets rose thanks to a weakening of the yen which improved expectations for exporting companies. Rising new home sales figures in the US also bode well for a global economic recovery. Japanese automaker Nissan, which gets 79 percent of sales overseas, grew 2,1 percent in Tokyo. SK Hynix, the world's second-largest maker of computer memory chips, rose 1,9% in Seoul after reporting better-than-expected earnings. Huaneng Power International jumped 4,7% in Hong Kong to near a five-year high after the electric power producer reported more than doubling net quarterly profits.
The MSCI Asia Pacific index gained 0,8% to 137.98 at 11:47am in Tokyo, approaching its best close since April 12. “The US economy is not doing so badly as to scare investors, but not so well as to be able to do without the stimulus from the Reserve Bank,” comments Stan Shamu, markets strategist at IG Markets in Melbourne. "This situation is good for the global economy."
The Nikkei 225 Stock Average gained 1,2% on a day as the yen fell as low as 99.77 against the dollar before recovering to 99.30. Australia's S&P/ASX 200 gained 1,2 percent. Canberra's consumer prices rose less than expected in the last quarter, opening up the possibility of further reductions in interest rates. The New Zealand NZX 50 rose 0,5 percent. The Hang Seng was up 0,9% and the Shanghai Composite was up 0,2%. South Korea's Kospi advanced 0,8% while the Taiex Index recorded +0,6%.
Attachments: The Bloomberg article
