Markets

Asia stocks rise as commodity-linked shares gain; Nikkei up 0.46%

Forex Pros - Asian stock markets were broadly higher on Wednesday, as rising commodity prices boosted raw material shares, while markets took in stride news that China's inflation rate rose slightly more-than-expected in April.

During late Asian trade, Hong Kong's Hang Seng Index edged 0.12% higher, South Korea's Kospi Composite jumped 1.25%, while Japan's Nikkei 225 Index climbed 0.46%.

Earlier in the day, official data showed that China's annual rate of inflation in April rose 5.3%, down slightly from 5.4% in March, but still surpassing expectations for a 5.2% increase.

In Hong Kong, shares in oil producers led gains as oil prices advanced for the fourth consecutive day. Oil and gas giant PetroChina saw shares climb 2.35%, shares in CNOOC advanced 2.4%, while China Shenhua Energy saw shares add 1.1%.

Meanwhile, the Nikkei was boosted by gains in companies that provided positive outlooks for the current business year. Japan's largest telecom equipment manufacturer NEC rallied 4.7% after it said it expected a 15% increase in net income in the 2011 fiscal year.

Shares in financial service provider Orix jumped 4% after forecasting 2011 net income will rise 15% to JPY77.5 billion yen.

Shares in automakers performed strongly after Goldman Sachs upgraded the sector, saying parts supply problems are unlikely to keep weighing on auto shares.

"We maintain our outlook for a steady recovery in global production by Japanese automakers each quarter," the investment bank said in a report earlier in the day.

The outlook for European equity markets, meanwhile, was upbeat. The EURO STOXX 50 futures pointed to a modest gain of 0.05%, France's CAC 40 futures rose 0.1%, the FTSE 100 futures pointed to a rise of 0.08%, while Germany's DAX futures indicated an increase of 0.12%.

Later in the day, the U.S. was to publish official data on its trade balance.

Forex News

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


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

Other Topics

Stocks

Latest Markets Videos