Asian markets follow Wall Street’s strong lead
City Index January 27, 2011 2:32 PM
<p>Asian markets followed a strong lead from Wall Street overnight to trade higher today. In Hong Kong, stocks rose after a US Federal Reserve reaffirmation […]</p>
Asian markets followed a strong lead from Wall Street overnight to trade higher today.
In Hong Kong, stocks rose after a US Federal Reserve reaffirmation to stimulate the US economy. China Merchants Holdings shot up 6.5% to HK$34.85 on the back of analyst upgrades from UBS, raising its price target from HK$37.30 to HK$40. Television Broadcasts Ltd declined 4.3% after saying its chairman is selling the bulk of his stake in Hong Kong’s biggest TV Company.
In Japan, the Nikkei was up 0.3%, led by the telecommunications sector which climbed 1.5%. Big gainers on the Nikkei 225 were Marubeni Corp up 3.9% and Mitsubishi Heavy Industries gaining 3.7%. Mitsubishi Heavy Industries received high praise for raising its profit expectation to 90 billion Yen prompting traders to buy the stock.
Going against the trend however was Japan’s fourth largest bank by assets, Resona Holdings, which plummeted 4.7% after announcing it planned to raise 544.8 billion Yen in order to repay a public bailout by the government seven years ago.
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