World Markets Buoyant; Deals Drive Confidence

123jump.com Staff
29 Sep, 2009
New York City

World markets edged higher as markets in the developed nations firmed. Asian markets advanced on the expectations of better earnings and European markets gained on rising confidence and merger activities. The U.S. metropolitan home prices decline slowed.

[R]10:20 AM New York – World markets edged higher as markets in the developed nations firmed. Asian markets advanced on the expectations of better earnings and European markets gained on rising confidence and merger activities. The U.S. metropolitan home prices decline slowed.[/R]

Stocks in early trading in New York edged higher after the decline in metropolitans home prices at the twenty largest metros slowed.

World markets edged higher after a rally in New York lifted global investors sentiment.

Stocks in Japan closed higher after financials led the gainers and miners and retailers advanced in Australia. Markets in India surged as infrastructure and banking stocks advanced on the expectations of higher earnings. Hong Kong stocks gained as financials and resources related stocks gained.

India based Bharti Airtel and South Africa based MTN are expected to announce their deal as early as today. The merger talks have been postponed twice before and the second deadline is tomorrow. The largest merger to date in the year is valued at $24 billion.

Russia lowered its key overnight lending rate by 0.5% to 10% but left its 30-day loan rate at 9%. Ruble traded at 30.09 to a dollar from 30.198 at yesterday’s close.

European markets advanced as confidence in the region gained to the highest in September. BNP Paribas is looking to raise 4.3 billion euros to repay debt to French government. TUI Travel is planning to sell £300 million of convertible bonds to repay its parent shareholder.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 90.68 or 0.91% to 10,100.20, Hang Seng index in Hong Kong increased 424.76 or 2.06% to 21,013.17 and CSI 300 index in China lower 0.36 or 0.01% to 2,972.29. ASX 200 index in Australia increased 75.70 or 1.62% to 4,753.10. The FTSE Bursa KL Composite index in Malaysia was higher 2.26 or 0.19% to 1208.21.

The Kospi Index in South Korea increased 14.50 or 0.87% to close at 1,690.05. SET index in Thailand closed higher 6.41 or 0.90% to 715.29. JSE Index in Indonesia increased 46.00 or 1.92% to 2,443.83.The Sensex index in India increased 159.91 or 0.96% to 16,852.91.

Europe Markets Review

In London FTSE 100 Index traded lower 20.92 or 0.40% to 5,144.78, in Paris CAC 40 Index decreased 17.55 or 0.46% to 3,807.45 and in Frankfurt DAX index traded lower 29.98 or 0.52% to 5,706.33. In Zurich trading SMI decreased 1.03 or 0.02% to 6,288.24.

ASX 200 Index Movers

PanAust Limited led the decliners in the ASX 200 index of 6.0% followed by losses in Nufarm Limited of 4.2%, in Energy World Corporation Limited of 3.2%, in Sundance Resources Limited of 3.2% and in APN News & Media Ltd of 2.7%.

Boart Longyear Limited gainers in the ASX 200 index with a rise of 8.4% followed by gains in Karoon Gas Australia Ltd of 7.2%, in Bank of Queensland Limited of 7.1% and in Astro Japan Property Trust of 6.9%.

Nikkei 200 Average Movers

Showa Denko K.K. led the decliners in the Nikkei 225 index of 5.4% followed by losses in Casio Computer Co., Ltd. of 4.7%, in West Japan Railway Company of 4.7 %, in Taiheiyo Cement Corporation of 4.0% and in East Japan Railway Company of 3.1%.

Jgc Corporation led gainers in the Nikkei 225 index with a rise of 6.5% followed by gains Kobe Steel, Ltd. of 5.3%, in Panasonic Electric Works Co of 4.9% and in Nomura Holdings, Inc of 4.4%.