Asia stocks broadly higher after Greek vote; Nikkei up 1.8%

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Forex Pros - Asian stock markets were broadly higher on Wednesday, as market sentiment was boosted after Greek Prime Minister George Papandreou survived a key parliamentary confidence vote late Tuesday, easing concerns over an imminent default.

During late Asian trade, Hong Kong's Hang Seng Index rose 0.45%, South Korea's Kospi Composite advanced 0.77%, while Japan's Nikkei 225 Index rallied 1.8%.

Greece's parliament supported Prime Minister Papandreou's new cabinet on Tuesday, wining the support of 155 out of 300 parliament members.

The confidence vote fuelled hopes that Greek lawmakers would support next week's vote on harsh austerity measures, which include EUR28 billion in spending cuts and new taxes over the next five years.

Shares in Tokyo rose for the third consecutive day, as shares in many of the big name Japanese exporters advanced, boosted by the outlook for export earnings.

Consumer electronics giant Sony saw shares jump 3.7%, rival Panasonic rose 2.05%, while shares in the world's largest automaker Toyota gained 1%.

Shares in the financial sector also performed strongly, with Mitsubishi UFJ Financial Group and Mizuho Financial Group each climbing 2.5%, while Daiwa Securities Group saw shares rally 4.25%.

Chipmaker Elpida Memory saw shares jump 4.35% after it said it had developed a new, ultra-thin dynamic random-access memory ( DRAM ) chip.

In Hong Kong, shares in retailer Li & Fung, which receives most of its revenue from Europe, soared 7.7%.

Shares in Cosco Pacific, the Hong Kong-based operator of container facilities in Greece climbed 2.3%, while rival China Merchants Holdings rose 1.4%..

The outlook for European stock markets was modestly lower. The EURO STOXX 50 futures pointed to a decline 0.35%, France's CAC 40 futures shed 0.15%, Germany's DAX futures eased down 0.05%, while the FTSE 100 futures retreated 0.1%.

Later in the day, the euro zone was to publish official data on industrial new orders as well as data on consumer confidence.

Also Wednesday, the Federal Reserve was to announce its federal funds rate. The announcement will be followed with a press conference by Fed Chairman Ben Bernanke to discuss the bank's rate statement.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: DRAM

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