Wall Street lead pushes Asian markets higher
City Index March 25, 2011 8:28 PM
<p>Strong leads from Wall Street overnight pushed Asian shares generally higher today. US investors are optimistic of positive corporate earnings, and pushed the US markets […]</p>
The Hang Seng and Nikkei indices were both up today.
In Hong Kong, stocks climbed sending the benchmark Index to its first advance in three weeks after corporate earnings exceeded analyst estimates and a US report showed a decline in unemployment claims.
Bank of China Ltd, the nation’s third largest lender by market value rose 3.1% after posting a 29% increase in full year net income. China Construction Bank Corp gained 1.5% ahead of the release of its full year results today.
In Japan, Arisawa Manufacturing Co, the processor of industrial materials widened its full year net loss forecast to 2.16 billion Yen – the stock increased 2.4%. Askul Corp, a distributor of office equipment said nine month income plunged 55% sending the stock lower 1.5%.
In Australia, the local share market opened strongly and stayed in positive territory to close higher this week.
The positive lead from the US overnight gave our local stocks some prodding today. We saw strength across the board (in all sectors), but it was the Mining and Energy sectors that led the push higher today.
We have a combination of a few positive factors at play. The US market is positive and optimistic on corporate earnings and the Japanese situation seems not to be a big worry among investors at this stage.
It is understandable to see some strong bounce on the market given the big drops that we’ve seen over the past two weeks. We are seeing bargain hunters getting active again as well as those who have remained bullish despite the hiccups over the recent weeks.
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