Wednesday 15 February 2012

Asia stock markets rise as Japan exporters surge

BANGKOK (AP) - Asian stock markets surged Wednesday after Greece indicated a willingness to commit to spending cuts to secure its bailout and moves by Japan's central bank to support the economy lifted its powerhouse export sector.

Benchmark oil rose above $101 per barrel while the dollar fell against the euro but rose against the yen.

The Nikkei 225 index in Tokyo soared 2.6 percent to 9,286.31 after briefly touching 9,314.37?its highest midday level in more than six months. The surge comes a day after the Bank of Japan announced it would buy more government bonds and keep short-term interest rates near zero, giving the persistently strong yen a rare chance to weaken.

South Korea's Kospi gained 1 percent to 2,023.22. Hong Kong's Hang Seng jumped 2 percent to 21,330.65, its highest midday level since Aug. 4.

Australia's S&P/ASX 200 index was up 0.3 percent at 4,253.40. Benchmarks in Singapore, Taiwan and mainland China also rose while Indonesia and New Zealand fell.

Markets found hope in reports quoting Greek government officials as saying party leaders would promise by Wednesday to implement deep spending cuts and other reforms.

That came after talks to extricate Greece from a two-year debt crisis appeared to unravel late Tuesday after European finance chiefs canceled a meeting to discuss a second international bailout for the country.

The meeting was called off after Athens failed to deliver on several demands made by its partners in the euro currency union. Greece needs a $171 billion (euro130 billion) bailout by March 20 to avoid a default that could rattle the world financial system.

The country has already passed some of the deep spending cuts its lenders were demanding but hasn't really satisfied anyone. Greeks have rioted, saying the cuts are too harsh, and Greece's neighbors have expressed concern that the cuts are not enough.

Greece also said its economy shrank drastically at the end of last year, and Europe is expected to report Wednesday that the economies of the 17 countries that use the euro shrank 0.4 percent after growing 0.1 percent the quarter before.

Late Monday, Moody's also downgraded its debt ratings on six European countries, including Italy, Portugal and Spain. Moody's also said it might cut France, Austria and the U.K. as well.

Japanese exporters rose sharply as the persistently strong yen showing signs of abating on the heels of the central bank's surprise announcement Tuesday. Mazda Motor Corp. jumped 8.3 percent and Toyota Motor Corp. surged 5.1 percent. Sony Corp. was 5.5 percent higher. Nintendo Co. added 4 percent.

But shares of Japanese computer chip maker Elpida Memory Inc. plunged 15 percent, after the company said Tuesday that talks were not going well with other companies on investments, loans and partnerships to improve its dire financial conditions.

South Korean technology shares jumped. Samsung Electronics Co. added 4.7 percent while Hynix Semiconductor Inc. gained 5.6 percent.

The Dow Jones industrial average rose marginally to close at 12,878.28. The Standard & Poor's 500 index fell nearly 0.1 percent to close at 1,350.50. The Nasdaq composite index rose 0.4 points to close at 2,931.83.

Benchmark oil for March delivery was up 94 cents to $101.68 per barrel on the New York Mercantile Exchange. The contract fell 17 cents to finish at $100.74 per barrel on the Nymex on Tuesday.

In currency trading, the euro strengthened to $1.3167 from $1.3095 late Tuesday in New York. The dollar was steady at 78.47 yen.

Source: http://www.breitbart.com/article.php?id=D9STKOC01&show_article=1

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