Asian Stocks Gain on Greece Support Plan

Friday, February 12, 2010 at 2:45 pm

MUMBAI: Asian markets were mostly higher Friday on optimism Europe’s pledge to help debt-laden Greece would stave off a broader crisis among the 16 countries that use the euro.
Asian Stocks Gain on Greece Support Plan
Adding to positive sentiment was better-than-expected economic reports from the U.S. and China, which raised hopes of a strengthening recovery.

Japan’s market, closed Thursday for a public holiday, led the region’s gains. Oil slipped after jumping above $75 a barrel overnight while the dollar fell slightly against the yen and gained versus the euro.

“We’ve had a fairly sharp sell-off particularly in Asia for a few weeks, and we’re seeing a rebound based on that,” said Lorraine Tan, director of equities research at Standard & Poor’s in Singapore. “There has been good news. That helps provide some confidence to the market.”

On Thursday, Europe pledged to help Greece with its debt crisis. Despite offering few details of how a bailout might work, the move raised confidence that instability would not spread to countries like Portugal and Spain.

A tame report Thursday on Chinese inflation also raised hopes that Beijing would not move aggressively to slow the economy and cool demand for natural resources.

The U.S. Labor Department said first-time claims for jobless benefits fell more than expected last week, which economists hope will signal a lasting recovery.

Japan’s Nikkei 225 stock average rose 74.61 points, 0.8 percent, to 10,038.60 and the Shanghai Composite index was up 18.8, or 0.6 percent, to 3,004.86. Hong Kong’s Hang Seng gained 36.13, or 0.2 percent, to 20,318.98.

Elsewhere, South Korea’s Kopsi dropped 13.89, or 0.9 percent, to 1,583.92, led by profit taking in technology stocks before a public holiday. Australia’s benchmark was also down while markets in Thailand, Malaysia and Indonesia rose.

Trading activity has been subdued the past few days ahead of holidays next week for the Lunar New Year in China, Hong Kong and elsewhere.

In the U.S. on Thursday, the Dow rose 105.81, or 1.1 percent, to 10,144.19, its highest close in more than a week. The S&P 500 index rose 10.34, or 1 percent, to 1,078.47. The Nasdaq composite index rose 29.54, or 1.4 percent, to 2,177.41.

Oil prices were lower in Asia, with benchmark crude for March delivery off 37 cents at $74.91. The day before it jumped 76 cents to settle at $75.28.

In currencies, the dollar fell to 89.66 yen from 89.74 late Thursday in New York. The euro fell to $1.3665 from $1.3693.