Optimism on European summit boost Asian shares

<p>Asian stocks were higher on positive offshore leads and some optimism ahead of the upcoming European summit which will hopefully address a solution towards the […]</p>

Asian stocks were higher on positive offshore leads and some optimism ahead of the upcoming European summit which will hopefully address a solution towards the sovereign debt crisis.

The MSCI Asia Pacific index was 1.1% higher in late afternoon Tokyo trading. S&P500 index futures were last pointing to a rise of around 0.4%.

Copper has clawed back some of its losses but it still remains below the important US$3.60/lb level where it is meeting stiff resistance.

The euro was last trading at around 1.3420 against the dollar while the yen was flat throughout the day with the USD/JPY at 77.73.

In economic news, Australia recorded a 1% rise in September GDP, measured against the same period last year, on a seasonally adjusted basis. The result was within market expectations which were recently revised slightly lower.

The real test will come in December GDP data after commodity prices moved lower in October, iron ore in particular. Jobs data is the next key important data point.

In corporate news, Japanese shipping giant Mitsui O.S.K saw a positive move in its share price after a super tanker deal added to signs that the key names in the shipping industry are working to address fears of overcapacity.

Shipping rates could potentially respond favourably in 2012 after being depressed for a while now. Mitsui was the largest gainer on the Nikkei today ahead of rivals Kawasaki Kisen Kaisha and Nippon Yusen KK.

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