Shanghai Climbs 4%

Elena
08 May, 2006
New York City

Asian markets surged on Monday, led by China Shanghai Composite which hit a two-year high, rising 3.95% to 1497.10. The index was boosted by gains in oil and real estate issues, following new stock rules. The Nikkei climbed 0.8%, benefiting from strength in financial and heavy industries. In Hong Kong, the Hang Seng soared 1.7%, supported by metals shares. Australia All Ordinaries rose 1.3%, with Rio Tinto and BHP Billiton each rising 3.6%

[R]7:45AM Asia advanced, led by China Shanghai Composite.[/R]
Asian-Pacific benchmarks surged on Monday, led by China Shanghai Composite which hit a two-year high, rising 3.95% to 1497.10. The index was boosted by gains in oil and real estate issues, following new stock rules which will permit listed Chinese companies to raise extra money on the country''s stock exchanges. Among advancers, China Petroleum & Chemical rose 6.3% and China Yangtze Power surged 6.2%. Insurance, metals and food stocks also advanced. The Nikkei climbed 0.8% to 17,291.67 after the week’s holiday, benefiting from strength in financial and heavy industries. In Hong Kong, the Hang Seng soared 1.7%, supported by metals shares which advanced along with rising commodity prices. South Korea’s Kospi gained 0.8% helped by Samsung Electronics and steelmaker Posco. Australia’s All Ordinaries rose 1.3%, with Rio Tinto and BHP Billiton each rising 3.6%


[R]7:00 AM Tech stocks close higher after large gains.[/R]
The Nasdaq Composite Index advanced 19 points to close at 2,342. Total volume on the Nasdaq Stock Market came to two billion shares. The positive report from the Labor Department boosted market sentiment that the Fed could end its policy of lifting the interest rates.
Advancers

Activision gained 13% in the trading despite reversing to a fourth-quarter loss on the promise of booming sales of its “Call of Duty 2” product.
THQ rose 4.3% after reporting swinging to a quarterly loss, owing to its upcoming game based on “The Sopranos”.
Circuit City advanced 11%, following the company’s statement that its earnings have been underestimated by the market and also by the benefits the company gathers from its turnaround efforts.

Decliners
Open Text stock declined 19% due to missed analyst estimate for a quarterly earnings profits and weaker-than-expected sales.
Electronic Arts was also down by 11%, following the release of its disheartening guidance.
McData sank 4% in the wake of its announcement that the first-quarter profit and revenue would just meet forecasts.